Brown-Forman $BF.B just reported a double miss, and the market didn’t hold back.
Shares dropped nearly 18%, marking the worst earnings reaction in company history.
This isn’t an overreaction. It’s a reflection of deepening concerns about the company’s fundamentals.
Organic sales growth is slowing, margins are compressing, and iconic brands like Jack Daniel’s are struggling to maintain momentum in an increasingly competitive and cost-sensitive environment.
What used to be seen as a premium, defensive name in consumer staples is now being priced more like a challenged value trap.
Even before this report, sentiment had been weakening.
The stock has been punished for 8 of the last 12 earnings reports, a sign that investor confidence has been eroding for quarters.
Until management proves it can regain margin control and reignite consistent demand growth, things will continue worsening.
So what else did we learn from this earnings report? Let’s dive into the details.
We love our bottoms-up scans here at All Star Charts. We tend to get really creative when making new universes as we want to be sure they will deliver us the best opportunities the market has to offer.
However, when it comes to this one, it couldn't be any simpler!
With the goal of finding more bullish setups, we have decided to expand one of our favorite scans and broaden our regular coverage of the largest US stocks.
Welcome to TheJunior Hall of Famers.
This scan is composed of the next 150 largest stocks by market cap, those that come after the top 150 and are thus covered by the Hall of Famers universe. Many of these names will someday graduate and join our original Hall Of Famers list. The idea here is to catch these big trends as early on as possible.
There is no need to overcomplicate things. Market cap is a quality filter at the end of the day. It only grows if price is rising. That's good enough for us.