Tomorrow is Cinco De Mayo, and Mexican-Americans, Mexicans, and Americans will all be celebrating the unlikely victory of the Mexican army over the French at the Battle of Puebla on May 5, 1862, under the leadership of General Ignacio Zaragoza Seguín.
While the holiday is not celebrated as much in Mexico, the date is observed in the country, but it is more of a holiday in the U.S., as people go out and celebrate, eat and drink, and have a great time in general. Cinco de Mayo is not Mexico's Independence Day, which is the most important national patriotic holiday in Mexico.
On June 7, 2005, Congress issued a Concurrent Resolution which caused then President Bush to have American citizens to observe Cinco de Mayo with appropriate ceremonies and activities.
Most of the celebrating is done via drinking and eating, and here are five stocks for Cinco de Mayo, which can put some fireworks in your portfolio.
Heineken HNK may not be the most interesting company in the world, but it does own the most interesting beer brand in the world, Dos Equis. Heineken also owns Heineken, its namesake brand. Holding shares may not allow you to win trophies for your game face alone, but it could provide a boost to your portfolio. Or perhaps, allow you to bowl overhand.
Anheuser-Busch InBev NV BUD is the largest purveyor of beer around the world. The company trades at 14.3 times 2012 earnings, sports a 1.5% dividend yield, and trades at a PEG ratio of 1.15. Shares have risen 32% in the past year. The company's return on equity is 16%.
Diageo plc DEO is a $50 billion company that includes such brands as Johnnie Walker scotch whiskies, Smirnoff vodka, Baileys Original Irish Cream liqueur, Captain Morgan rum, Jose Cuervo tequila, JeB scotch whisky, Tanqueray gin, and Guinness stout, as well as Smirnoff ready to drink products. A lot of tequila will be drank on Cinco de Mayo, as will a lot of Corona. Corona is not owned by a publicly traded company, but Jose Cuervo is, and Jose Cuervo is a staple on Cinco de Mayo.
Diageo trades at 14.5 times earnings, sports a 2.5% dividend yield, and trades at a PEG ratio of 1.73. Shares have outperformed the S&P 500 over the past year, gaining 20%, compared to the S&P's 16% in the past year.
PepsiCo PEP is another Cinco de Mayo favorite, as it owns Frito-Lay, which owns Tostitos, for chips & salsa. Shares of PepsiCo trade at 14.2 times 2012 earnings, it has a 2.8% dividend yield, and trades at a price to earnings growth ratio of 1.90. Shares have gained 6.3% in the past 52 weeks, well under-performing the S&P 500, which gained 16% over the past year.
Last but certainly not least is Chipotle Mexican Grill CMG. Shares of this fresh, fast food Mexican-themed restaurant chain have soared over the past year, gaining 95%, well outpacing the S&P 500. Chipotle is also starting to introduce an Asian themed fast food restaurant, which will allow the growth to continue.
Holding shares of these companies in your portfolio may allow you to be the life of parties you've never attended, especially during Cinco de Mayo.
They may even allow you to have a week dedicated to yourself, instead of sharks.
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Posted In: Long IdeasTrading IdeasCinco de MayoConsumer DiscretionaryConsumer StaplesDistillers & VintnersMexicoRestaurantsSoft Drinks
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