With stocks falling overall there may be concern that we are entering a bear market, but there are some industries that can hold up better in those environments, like the alcohol industry.
TheStreet's chartist Bruce Kamich noted that alcohol stocks are "one of the classic places to 'hide out'" in a bear market. Several alcohol stocks have corrected in the past few months, though some have corrected more slowly than others.
United Spirits' stock fell 1.3% to $3,373.55 on the Bombay Stock Exchange on Friday. In late July, Edelweiss Securities said the company identified 13 "power brands" that will help give the company an enhanced focus. United Spirits previously have a portfolio of about 150 brands.
Kamich said that United Spirits' stock has been in a seven-month sideways pattern, and that the stock "is testing its rising 200-day simple moving average."
Pernod Ricard shares were falling 2.4% to $98.83 on Friday. The alcohol company owns the Jameson Irish Whiskey, Jacob's Creek wine, and Absolut vodka brands, among others.
The company's chart shows that it has been correcting over the past four months and recently broke its 200-day moving average, according to Kamich.
Shares of Diageo (DEO) were falling 2.8% to $105.99 Friday afternoon. The company announced its second quarter financial results on July 30. The London-based company reported earnings of 95 pence a share and revenue of 10.81 billion pounds for the quarter.
Kamich noted that Diageo stock has slowly corrected over the past 1.5 years, adding that it should hold around current levels.
Constellation Brands (STZ) stock was down 4.1% to $123.39 Friday. This week the company announced the formation of an internal business group called Constellation Ventures which will invest in new companies producing liquor, beer, and wine, according to The Wall Street Journal. On Tuesday the group acquired a minority stake in Chicago-based Crafthouse Cocktails.
Kamich called Constellation Brands the "best looking name" among this group of alcohol companies, highlighting that the stock broke out of a six-month consolidation to the upside.
Anheuser-Busch InBev (BUD) stock was falling 2.4% to $109.48 Friday. The Budweiser maker reported its fiscal third quarter financial results on July 30. The company reported earnings of $1.21 a share and revenue of $11.05 billion for the quarter.
Kamich said that Anheuser-Busch has a "nice overall chart," adding that the stock is correcting a bit. The stock should try to hold support in the $110 to $100 range, according to Kamich.
Brown-Forman (BF.B) stock was down 1.9% to $102.97 Friday. The Jack Daniel's Whiskey maker is scheduled to report its fiscal first quarter earnings on August 26. Analysts surveyed by Thomson Reuters expect the company to report earnings of $0.75 a share and revenue of $944.7 million for the quarter.
Kamich said Brown-Forman has an "attractive chart" with a multi-year uptrend that is still above its rising 200-day moving average.
--Written by Bruce Kamich and Shawn Ingram