Top Stocks To Invest In 2019

Money Morning Quantitative Specialist Chris Johnson has two top picks for the best healthcare stocks to buy in July.

Chris’ proprietary "Best in Breed" (BiB) system finds both aggressive companies and discovers undervalued sectors poised for massive gains.

The Gains on This One $10 Stock Alone Could Earn You Enough to Retire – Click Here Now for Details

And his BiB system has uncovered breakout potential for the healthcare industry.

That led Chris to take a deep dive into the sector, and he came away with two healthcare stocks with huge upside potential…

Top Stocks To Invest In 2019: Celgene Corporation(CELG)

I’ve owned Celgene when its stock was hot, and I’ve owned it when it was not. There hasn’t been much heat for the big biotech over the last year. However, my hunch is that will change.

Celgene stock trades at less than eight times expected earnings. The biotech stock is cheap for two primary reasons. First, Celgene depends on Revlimid for 63% of its total revenue, and generic-drug makers are challenging the patents for Revlimid. Second, the company has experienced some pipeline setbacks, which makes investors even more anxious about the potential threat to Revlimid. These factors arguably make Celgene the riskiest big biotech stock on the market.

But Celgene continues to deliver exceptionally strong earnings. I don’t see the stock going much lower as long as that doesn’t change — and I don’t think it will. Any good news should provide a nice catalyst for the biotech. What’s more, the mere anticipation of good news should boost the stock.

Investors have plenty of anticipating to do. Celgene should file yet again for approval of ozanimod in treating multiple sclerosis in early 2019. Solid phase 3 results for luspatercept in treating myelodysplastic syndromes (MDS), a group of rare blood disorders, should lead to regulatory filings in the first half of next year. Celgene also expects to submit cell therapy liso-cel (formerly known as JCAR017) for approval in 2019.

Those are just three potential blockbusters that Celgene has percolating in its pipeline, and there are more. In my view, the growth prospects for the biotech are really good. They’re so good that I don’t think Celgene will remain such a bargain for much longer.

Top Stocks To Invest In 2019: Royal Dutch Shell plc(RDS-A)

Royal Dutch Shell put up an almost unbelievable $14.2 billion in free cash flow in the last 12 months. That allows it to simultaneously reward shareholders with a 5.5% dividend yield and and position itself as a prime player in the future of energy — more specifically, in the coming transition from gas to electric transportation. 

The world’s largest oil companies are getting hip to that game by making giant, multibillion-dollar investments in electric utilities and renewable energy technologies. Holland’s prized oil producer isn’t risking getting left behind, planning to spend up to $2 billion per year on non-fossil energy sources. So far, so good. 

Royal Dutch Shell owns a 44% stake in solar project manager Silicon Ranch, it acquired U.K. electricity provider First Utility, and it owns natural gas distributor and solar technology developer MP2 Energy. That provides a solid foundation upon which to build, but it’s important for investors to note that management sets a high bar for its renewable investments.

All of its acquisitions in electricity distribution and electricity generation are expected to deliver equity rates of return of 8% to 12%, in addition to free cash generation within the next five years. In other words, Royal Dutch Shell (and a few other oil majors) isn’t just gobbling up renewable energy assets to collect shiny objects for an expensive PR game; it’s thinking strategically when deploying capital. That long-term thinking, when coupled with its impressive dividend yield, makes this oil stock a buy for investors committed to the long haul. 

Top Stocks To Invest In 2019: Eli Lilly and Company(LLY)

On Feb. 9, LLY dropped to a three-year low. Since then, it’s risen 16%. That climb moved the stock to trading higher than its 50-day and 200-day moving averages.

That sort of momentum – pushing it above its moving averages – is a sign the stock is heading even higher.

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In fact, the trend lines just formed a "golden cross," one of the most bullish technical indicators investors can use. In a golden cross, the 50-day moving average rises higher than the 200-day moving average, a classic bullish sign.

The last time that happened was in February 2017 when LLY was in the midst of a killer rally that sent the market up 35% over a five-month stretch.

It gets even better. Short interest grew 20% over the past month, which means a short squeeze could push the stock even higher if the rally continues.

Given that all the signals are indicating more upside, Chris has a price target on LLY of $90 per share. That’s slightly above the highs of October and December. That move might give a double if investors play the $85 call with an Aug. 17, 2018 expiration.

But LLY isn’t the best healthcare stock on our list…

Top 5 Canadian Stocks To Own Right Now

The S&P 500 climbed 13% over the past 12 months despite ongoing concerns about rising interest rates and trade wars, and several tech stocks crushed the market with triple-digit gains. Today we’ll take a closer look at three of those high-growth winners: 

Top 5 Canadian Stocks To Own Right Now: Unilever PLC(UL)

Unilever (NYSE:UL) is a familiar, international presence with consumer products across the spectrum. You certainly know all of the following: Dove, Knorr, Axe, Magnum, Lipton, Surf, Becel, Lux, Metadent, Pepsodent, Country Crock, Persil, Popsicle, Ben & Jerry’s, Breyer’s Vaseline and many more.

Unilever makes a ton of money. The company reported good numbers in its fourth-quarter earnings, with sales up 3.5%, operating margins up 110bps, earnings up 11% and free cash flow of 5.4 billion euros.

UL is concentrating on new channels: health and beauty, direct to consumer, e-commerce, and “experience stores.” By the way, UL is shoring up its pension, with a deficit of 3.2 billion euros now down to just 600 million. That means money to pay the dividend won’t be diverted.

UL only has two years of consecutive increases under its belt, but it pays a 3.2% dividend, which you could do worse than.

Top 5 Canadian Stocks To Own Right Now: Carnival Corporation(CCL)

Worries about rising fuel prices have pushed Carnival’s shares lower this year while helping lift its dividend yield back above 3%. However, there’s nothing in the cruise ship giant’s recent operating results to suggest that there is anything fundamentally wrong with the business.

On the contrary, sales growth just trounced management’s forecast for the second straight quarter thanks to healthy vacation demand. Carnival is also finding more ways to spur onboard spending, with that category up by double digits in the fiscal second quarter.

Sure, fuel costs will hurt profits if oil prices continue trending higher, but Carnival isn’t struggling to pass on its core expenses to its customers. In fact, management raised its full-year outlook on June 25, and it now expects net revenue yields to rise 3% while cruise costs (excluding fuel) expand by just 1%. 

Carnival Cruise ship Costa Fortuna moving through the ocean.

IMAGE SOURCE: CARNIVAL.

Over the long term, Carnival is aiming to lessen its exposure to oil prices by building more fuel-efficient ships. There are 18 of these vessels set to launch over the next five years, which should mark a steady pace that will protect profitability by matching supply growth with demand. Meanwhile, a bit of earnings volatility is a small price for investors to pay for an above-average yield and a strong underlying business.

Top 5 Canadian Stocks To Own Right Now: BeiGene, Ltd. (BGNE)

China isn’t just about tech stocks. One of the country’s largest biopharmas is an excellent ‘Strong Buy’ stock idea right now. BeiGene Ltd (ADR) (NASDAQ:BGNE) is making a name for itself with cutting-edge cancer treatments. Primarily these treatments, known as BTK inhibitors, can shrink or eliminate some B cell tumors by disrupting the BCR pathway.

Top Maxim Group analyst Jason McCarthy is very encouraged by recent clinical data for the drug Zanubrutinib. He writes “BeiGene remains on track to file two NDAs [new drug applications] this year. We believe the data continues to be highly encouraging for the BTK inhibitor and we see multiple catalysts ahead across the PTK, PD1 and PARP that should, if positive push valuation higher.”

Most encouragingly, he is clear that more upside potential lies ahead. BeiGene’s valuation has risen significantly over the last year, at around ~$9B. However, McCarthy believes that “With a BTK, PD1, PARP and a pipeline of assets, as well as a partner in Celgene and a foothold on the China oncology market, we see more upside in BGNE shares.”

Indeed, McCarthy’s $225 price target indicates huge upside potential of 46%. He is one of three analysts that have published recent buy ratings on BGNE.

Top 5 Canadian Stocks To Own Right Now: Procter & Gamble Company (PG)

In the consumer products space, it’s hard to find a bigger stock than Procter & Gamble. The company sports almost two dozen billion-dollar brands globally, with products like Pampers diapers and Crest toothpaste found in households around the world. The consumer giant is a member of the Dow Jones Industrial Average and generated revenue of more than $66 billion over the past 12 months, with a global presence few competitors can match.

On the dividend front, Procter & Gamble is also exceptional. The stock currently yields 3.7%, and the company has been generous in sharing its long-term growth with shareholders through regular dividend increases. For 62 straight years, shareholders in P&G have gotten annual payout boosts, including a 4% rise this past spring to $0.7172 per share quarterly. That not only makes P&G a Dividend Aristocrat, it also puts it among the top half-dozen stocks with the longest dividend-increase streaks in the market.

Procter & Gamble branded items like Charmin, Tide, Pampers, Bounty and Downy displayed together.

IMAGE SOURCE: P&G.

Procter & Gamble has experienced some struggles lately, which explain its slumping share price and rising yield. Yet the company has a long-term strategy that includes focusing on its most successful brands. That looks promising, and it creates an opportunity for would-be P&G investors to buy in at relative bargain prices in hopes of success over the long haul.

Top 5 Canadian Stocks To Own Right Now: Baozun Inc.(BZUN)

Shares of Chinese e-commerce services provider Baozun rallied more than 120% over the past 12 months. The company provides retailers with digital storefronts bundled with marketing, customer, fulfillment, and IT services, making it a "one-stop shop" for bringing businesses online in China’s bustling e-commerce market. It serves a wide range of clients, from small businesses to multinational giants like Nike.

The bears once claimed that Baozun would be rendered obsolete if Alibaba or JD.com, the two top e-commerce players in China, launched similar services for their marketplaces. But today, Alibaba, JD, and many other e-commerce websites integrate Baozun’s platform into their marketplaces.

Baozun’s revenue rose 22% as its non-GAAP net income surged 121%. On a GAAP basis, earnings climbed 141%. The company attributes that growth to rising transactions at its clients’ stores, an expanding number of brand partners, and its ability to cross-sell new services.

Analysts expect Baozun’s revenue and non-GAAP earnings to grow 27% and 68%, respectively, this year. Those are impressive growth rates, but the stock isn’t cheap at 46 times this year’s earnings.

Top Tech Stocks To Own Right Now

The Holy Grail for income investors is finding quality companies with significant payouts that will continue to generate income over the long haul. It’s important to remember, though, that companies with large dividends are not all created equal. In some cases, a high yield can be a red flag that indicates trouble in the underlying business.

Separating the wheat from the chaff can be an arduous and time-consuming process, but we’re here to help. We asked three Fool.com contributors to choose top companies with high payouts. Read on to find out why they chose the following stocks.

Top Tech Stocks To Own Right Now: Alibaba Group Holding Limited(BABA)

China e-commerce giant Alibaba (NYSE:BABA) has morphed into the face of the booming China tech revolution. As a result of essentially becoming the Amazon.com (NASDAQ:AMZN) of China with a super-charged digital retail business and rapidly growing cloud business, Alibaba stock has gone from $60 to $200 over the past two-plus years.

But the stock has been stung recently by a plethora of headwinds, none of which have staying power or will materially affect the company’s still robust long-term growth narrative.

First up, there are the currency headwinds. There was a recent devaluation of China’s currency, and that creates foreign exchange risks for Alibaba. But as MKM Partners points out, such currency risks always created weakness in shares in the near-term, and never materialized into anything meaningful. As such, present currency headwinds should be viewed as a buying opportunity.

Second, there are also concerns about Alibaba’s profitability. Alibaba has long been a staple for both big revenue growth and healthy margin expansion. But the latter part of that narrative — the margin expansion part — has been lacking recently as big investments into New Retail and cloud have diluted the margin profile of the business.

This isn’t anything to freak out about. Alibaba is investing big for the future. Eventually, big investment businesses will turn into big growth, big margin businesses, and the overall profitability profile of Alibaba will improve dramatically.

Overall, then, the risks presently facing Alibaba stock are over-stated. With the stock now trading at under 30-times forward earnings against the backdrop of 60%-plus revenue growth, it looks like July could be a big bounce-back month for Alibaba stock

Top Tech Stocks To Own Right Now: Canopy Growth Corporation(CGC)

Canopy Growth Corporation is one of the few marijuana stocks that generated a solid return in the first six months of the year. The Canadian marijuana grower’s share price is up 25% year to date.

Can Canopy Growth keep its momentum going? Probably so. The market for adult use of recreational marijuana opens in Canada in October. Canopy already has supply agreements for recreational cannabis with several provinces. The company has also cranked up its capacity to meet what’s expected to be a surge in demand.

An even greater opportunity for Canopy lies in global medical marijuana markets. The company reported record sales in Germany in its fiscal fourth-quarter results. Canopy is also expanding into other international markets. And with its big partner Constellation Brands, the company plans to get into the cannabis-infused beverage market. Canopy CEO Bruce Linton recently hinted in a CNBC interview at the potential for launching a zero-calorie beverage infused with cannabis.

Top Tech Stocks To Own Right Now: Select Income REIT(SIR)

Real Estate Stocks Paying Monster Dividends: Select Income REIT (SIR)

Source: Anders Jildén via Unsplash

 

Dividend Yield: 9.1%

Select Income REIT (NASDAQ:SIR) specializes in both office and industrial properties leased to single tenants. Buildings as diverse as corporate headquarters and leasable land parcels make up SIR’s portfolio of properties. SIR also owns 69.2% of the shares in Industrial Logistics Properties Trust (NASDAQ:ILPT). ILPT makes up its industrial properties and much of its office property.

Like many real estate stocks, this stock has seen little stock price appreciation. SIR stock currently trades around $22.50 per share, less than $1 higher than its $21.75 per share IPO price in 2012. In six years of trading, the stock has never risen more than 40% above this IPO price. It has also never fallen more than 20% below its original price.

Hence, like most REITs, dividends will constitute the majority of profit earned in SIR stock. The dividend has seen a steady increase since the 2012 IPO. The annual dividend started out at 91 cents per share in 2012. It has seen a sustained move higher since and last increasedto $2.04 per share. The quarterly dividend has remained at that 51 cents per share per quarter for two years. If that trend continues, 2018 will become the first year in its history not to see a dividend increase.

However, even if investors do not see a higher dividend, a yield of 9.1% will still provide income investors with a stable amount of income at a high return.

Top Tech Stocks To Own Right Now: Turquoise Hill Resources Ltd.(TRQ)

Headquartered in British Columbia, Turquoise Hill Resources Ltd. (NYSE: TRQ) is a Canadian mineral exploration firm focused on the Pacific Rim region.

Over the last several years, Turquoise Hill has developed several significant mining projects, including the Oyu Tolgoi Project in Mongolia – one of the world’s largest copper and gold porphyry deposits.

Over the last fiscal year, Turquoise Hill has beat earnings by an average of 225% while heavily investing in the expansion of its mining operations across the globe.

The company’s rapid expansion and investment has given Turquoise Hill some aggressive production estimates for 2018.

The company’s 2017 projections estimated that Turquoise Hill will pull between 125,000 to 155,000 tons of copper and 280,000 tons of gold over the course of 2018.

Last month, Turquoise Hill doubled down on these figures and stated that it had the potential to outpace initial estimates.

Turquoise Hill currently trades for $2.76. However, with rapid expansion fueling rising profit potential, analysts estimate that the company could hit $4.00 in the near future. This is a gain of 43%.

Both Turquoise Hill and Mizuho are great penny stock investments for July. But our top penny stock has better profit potential than both of these picks.

An international steel company, our top penny stock to buy in July, is set to generate substantial returns as trade war tensions continue to rise…

Best Safest Stocks To Buy Right Now

The U.S. Federal Reserve may be pushing short-term interest rates higher, but the fact remains that these rates are still incredibly low. Parking money in the bank yields almost nothing. And bond yields are not much better. The benchmark 10-year Treasury note only offers a stingy 2.84%.

Nobody gets rich on 2.84%.

That’s why divided stocks are in such demand.

And the three we’re going to show you today are some of the best dividend stocks you can buy in 2018…

Best Safest Stocks To Buy Right Now: Scotts Miracle-Gro Company (SMG)

Scotts Miracle-Gro’s share price fell more than 20% during the first half of 2018. There were two reasons behind this dismal performance. First, California hasn’t had its act together in rolling out the legalization of recreational marijuana, seeing high tax rates and slowness for many counties to finalize their regulatory processes. Second, a long winter resulted in the season for U.S. consumers to buy lawn and garden products starting later than it normally does.

But both of these are temporary issues. The California cannabis market should pick up steam. Arcview Research and BDS Analytics project that the state’s legal marijuana market should top $7.7 billion in sales in 2022. And the U.S. is definitely in the thick of lawn-and-garden season now.

Scotts is also in a better position to benefit from expansion in the U.S. marijuana market thanks to its acquisition of Sunlight Supply in April. This deal makes Scotts’ Hawthorne subsidiary the largest hydroponics supplier in the U.S. With Massachusetts legalizing recreational marijuana and Michigan potentially on the way to doing so, Hawthorne should enjoy solid growth in the future.

Best Safest Stocks To Buy Right Now: Weibo Corporation(WB)

Welcome to Weibo Corp (NASDAQ:WB), China’s most popular multimedia micro-blogging website. The fast-growing site already boasts over 374 million monthly active users. “Weibo has established itself as a unique and sustainable social network, and we expect long-term growth in number of users and better monetization,” cheers UBS analyst Jerry Liu. “We see Weibo as Twitter but, importantly, with Instagram-like features.”

Unlike Twitter, Weibo is much more interactive with a heavy emphasis on video, photo, and live-streaming content. It is also the partner of major TV networks and users can shop online using the BABA-backed ‘Weibo Payment’. Other initiatives include virtual gifting and partnering with smartphone companies to pre-install the Weibo app. It is this “differentiated platform for users and improved ad system for advertisers” that gives Weibo huge profitability potential says Liu.

Plus note that Alibaba and another Chinese company called Sina Corp are both big stakeholders in the stock. Indeed, Weibo was spun off from Sina back in 2014. To get some idea of the stock’s growth potential we can see that the most recent rating comes from Jefferies’ Karen Chan. She has Buy rating on Weibo with a $160 price target. This means she sees prices spiking a whopping 80%.

Best Safest Stocks To Buy Right Now: Autohome Inc.(ATHM)

Another Chinese internet company, Autohome, rallied about 125% over the past 12 months. Autohome’s websites provide auto-related news, reviews, and prices for cars, while its Autohome Mall platform connects buyers to dealers. The company is expanding that offering with a cloud-based platform for over 35,000 used car dealers.

Autohome’s only meaningful competitor is Bitauto, which generates higher revenue growth but softer earnings growth. Bitauto is notably backed by Tencent and JD, which frequently co-investin tech and retail companies.

Autohome’s revenue rose 4% last year, mostly supported by a 34% jump in revenues from its media and leads generation services. Its non-GAAP net income climbed 53%, while its GAAP net income grew 63%. The company recently shuttered its unprofitable direct sales business and switched over to the ASC 606 accounting standard, both of which will slightly throttle its reported revenue growth this year.

A bird's eye view of a car lot.

IMAGE SOURCE: GETTY IMAGES.

Nonetheless, analysts still expect Autohome’s revenue and non-GAAP earnings to climb 14% and 21%, respectively, this year. The stock currently trades at 29 times this year’s earnings, which seems slightly pricey relative to its earnings growth potential.

Best Safest Stocks To Buy Right Now: Mizuho Financial Group, Inc.(MFG)

The second-largest financial services company in Japan, Mizuho Financial Group Inc. (NYSE: MFG) is a Japanese banking holding company headquartered in Tokyo.

Mizuho controls $1.8 billion in assets, ranking just behind Mitsubishi UFJ Financial Group Inc. in size.

Mizuho divides its financial services among retail banking, global asset management, financial strategy, and corporate investment, giving the company a diverse stream of revenue for the company and its investors.

Thanks to this diversity, Mizuho’s business is protected against the volatility that often rocks financial companies in turbulent markets. It also allows Mizuho to tap profit centers throughout the financial industry.

This is certainly evident in the company’s bottom line. Over the last year, Mizuho managed to generate over $57 million in profit while growing earnings by over 2%.

Mizuho currently trades for $3.36. However, analysts see the company’s stock heading to $4.00 by the end of the year, locking in a gain of 23% for investors.

While Mizuho’s profit potential is promising, our second penny stock to watch is even better.

Best Safest Stocks To Buy Right Now: Colony Credit Real Estate, Inc.(CLNC)

Real Estate Stocks Paying Monster Dividends: Colony Credit Real Estate (CLNC)           

Source: Shutterstock

 

Dividend Yield: 8.3%

Colony Credit Real Estate (NYSE:CLNC) acts as a diversified REIT. CLNC owns properties in the industrial, office and hotel sectors. It also invests in commercial real estate debt. The firm also provides investment management services and offers financial products to individuals as well as institutions.

Though it boasts 26 years of experience and $43 billion in assets under management, it stands as one of the newer real estate stocks. The company only began trading as a REIT in February.

However, the little history available on the company appears promising. Revenues have risen by over 20% every year since at least 2015. Earnings have increased at about the same rate. Analysts expect CLNC stock to earn $1.77 per share this year. They also predict a net income of $2.08 per share in 2019.

So far, the company has paid 14.5 cents per share per month in dividends. That comes to $1.74 per share on an annual basis. Moreover, if the $2.08 per share profit for 2019 holds, shareholders can expect at least $1.87 per share next year. Hence, CLNC offers both a dividend exceeding 8% and the benefit of receiving dividends on a monthly basis. Few REITs offer one or the other, let alone both.

Despite the company’s long history, the stock’s short history as a publicly traded REIT might make some investors nervous. However, the financials that are available offer promise. For investors willing to take a chance on a short trading history, they can enjoy monthly returns, a dividend set to increase and, perhaps, a stock price set to increase along with the dividend.

Top 10 Energy Stocks To Own For 2019

In any long-term diversified portfolio, international stocks not only have a place, they should be represented by as much as 10% to 15% of your investment.

The reason is not merely diversification, but because international stocks do not always correlate directly to the performance of the U.S. market. You want to have stocks that aren’t correlated to smooth out volatility.

Investors can be afraid of international stocks, as if they aren’t as safe from a political, reporting or regulatory perspective as they are here in the United States. Political risk can be very real with international stocks, and significant cultural differences can present an additional risk when trying to evaluate securities.

Look, I would be very cautious investing in China, Russia or Africa. As I’ve mentioned in many articles about Chinese stocks, China is opaque. And current headline risks can give investors pause.

Still, international exposure is necessary, and there are many international companies that you will find palatable because you know their products, and you know their name. Plus, they pay pretty good dividends to boot.

Top 10 Energy Stocks To Own For 2019: Sprouts Farmers Market, Inc.(SFM)

Sprouts specializes in selling natural, organic food and other healthy, specialized food products i.e. vegan and gluten-free offerings, at lower price points than Amazon’s (NASDAQ:AMZN) Whole Foods supermarket. Sprout’s revenue has grown significantly in recent years, and it definitely has many enthusiastic admirers. Moreover, as more people increase their focus on eating healthier food and losing weight, Sprouts’ growth should accelerate going forward.

Despite worries that price cuts at Whole Foods would make its offerings cheaper than those of Sprouts, the latter company’s products are still significantly less costly.

Sprouts is profitable, as it reported first quarter earnings per share of 50 cents for the first quarter and reaffirmed its fiscal 2018 EPS guidance of $1.22-$1.28. The company’s comparable sales growth came in at 2.7%, and its two year comp growth was 3.8%, suggesting that its comp sales accelerated in the first quarter of 2018 versus the first quarter of 2017.

Meanwhile, rising food costs tend to increase supermarket chains’ profits. There are indications that food inflation is accelerating. According to the USDA, at-home food costs had risen 0.4% in the first five months of 2018,versus a decline of 1.3% in all of 2016 and a loss of 0.2% in all of 2017. Meat prices rose 1.4% in May 2018 versus a 0.6% decline in all of 2017, while egg costs jumped 21.6% in May versus a 9.5% decline in all of 2017. The cost of fruits and vegetables had risen an average of 0.7% in the first five months of 2018 versus a 0.2% decline in 2017.

Importantly, the inflation of food away from home came in at 2.7% in May, up from 2.3% in all of 2017. As restaurant food becomes more expensive, people will choose to get more of their food from supermarkets and eat at home.

However it should be noted that the average increase in away from home food prices for the first five months of the year came in at 1.9%. Still, May’s jump may indicate that eating out is starting to become more expensive.

Finally, a larger supermarket chain or a slow growth food company could easily decide to buy Sprouts, as the market cap of Sprouts stock is still just around $3 billion.

Top 10 Energy Stocks To Own For 2019: Constellation Brands Inc(STZ)

Stocks to Buy Over $200: Constellation Brands (STZ)

Source: Shutterstock

 

Constellation Brands (NYSE:STZ) is my pick from the consumer goods sector. Down 5% YTD, STZ stock is taking a snooze in 2018 after several years of outsized growth.

Since 2011, it has had some spectacular years on the markets — up by 30% or more on five out of six occasions — suggesting what’s happening now is a severe case of reversion to the mean.

Don’t fret if you own its stock and if you don’t here’s why you might want to take a closer look at the company best known for holding the U.S. rights to Corona beer.

You see, Constellation Brands paid $245 million last October to buy 9.9% of Canopy Growth Corp (NYSE:CGC), one of Canada’s best-known and largest marijuana companies. Today, that investment is worth almost four-fold that amount.

However, that’s not the best part of its investment. No, the best part is that it’s going to make cannabis-infused drinks using Canopy Growth’s expertise. As states come online and legalize recreational marijuana use, Constellation gains a new market to sell into.

That’s a big deal. More so than the $800 million profit, it has already made on paper. If you want to bet on marijuana, this is as safe a bet as they come.