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The 5 tobacco, beer, and distiller/vintner companies with major investments in the cannabis sector, constituents in the munKNEE Conservative "Cannabis" Stocks Index, are ranked below as to their performances last week, in descending order, and MTD along with:

• their current dividend yields,
• price-to-earnings (P/E) ratios,
• price-to-earnings growth (PEG) ratios,
• the number of Wall Street analysts following each stock with
  • their consensus Strong Buy/Buy/Hold/Sell ratings, and
  • the percentage variance from their projected price target
• the latest news, commentary and/or analysis:

Conservative "Cannabis" Stocks Index

1. Imperial Brands (IMBBY): DOWN 0.6% last week; UP 3.8% MTD
   • has a 19.9% stake in Auxly Cannabis Group (CBWTF)
   • dividend yield: 7.4%
   • price-to-earnings (P/E) ratio: 7.2
   • price-to-earnings growth (PEG) ratio: 1.0
   • number of Wall Street analysts following stock: 3
     • consensus Strong Buy/Buy/Hold/Sell rating: BUY
     • percentage variance from their projected price target: +7.5%
   • latest news, commentary and/or analysis:
     • Is Imperial Brands Stock Outpacing Its Consumer Staples Peers This Year?
2. Constellation Brands (STZ): DOWN 1.7% last week; UP 5.0% MTD 
   • has a 39% stake in Canopy Growth (CGC)
   • dividend yield: 1.4%
   • price-to-earnings (P/E) ratio: 21.2
   • price-to-earnings growth (PEG) ratio: 2.2
   • number of Wall Street analysts following stock: 25
     • consensus Strong Buy/Buy/Hold/Sell rating: BUY
     • percentage variance from their projected price target: +16.3%
   • latest news, commentary and/or analysis:
     • Constellation Brands Has Solid Growth, Diverse Portfolio
3. British American Tobacco (BTI): DOWN 2.2% last week; UP 0.6% MTD 
   • has a C$346M product development partnership with Organigram Holdings (OGI)
   • dividend yield: 9.8%
   • price-to-earnings (P/E) ratio: 6.3
   • price-to-earnings growth (PEG) ratio: 1.2
   • number of Wall Street analysts following stock: 6
     • consensus Strong Buy/Buy/Hold/Sell rating: STRONG BUY
     • percentage variance from their projected price target: +48.7%
   • latest news, commentary and/or analysis:
     • Is British American Tobacco's Dividend Yield Too Good to Be True?
4. Altria Group (MO): DOWN 2.4% last week; No Change MTD
   • has a 45% stake in Cronos Group (CRON)
   • dividend yield: 9.7%
   • price-to-earnings (P/E) ratio: 8.2
   • price-to-earnings growth (PEG) ratio: 2.3
   • number of Wall Street analysts following stock: 17
     • consensus Strong Buy/Buy/Hold/Sell rating: HOLD
     • percentage variance from their projected price target: +17.2%
   • latest news, commentary and/or analysis:
     • Where Will Altria Stock Be in 5 Years?
5. Anheuser-Busch InBev (BUD): DOWN x% last week; UP x% MTD
   • has a $100 million joint venture with Tilray (TLRY)
   • dividend yield: 1.3%
   • price-to-earnings (P/E) ratio: 21.1
   • price-to-earnings growth (PEG) ratio: 2.1
   • number of Wall Street analysts following stock: 12
     • consensus Strong Buy/Buy/Hold/Sell rating: BUY
     • percentage variance from their projected price target: +12.2%
   • latest news, commentary and/or analysis:
     • Anheuser-Busch Inbev Stock Declines While Market Improves: Some Information for Investors

Summary

The munKNEE Conservative "Cannabis" Stocks Index was DOWN 2.0% last week but remains UP 2.9% so far in 2024 and the stocks in the Index have an average dividend yield of 3.15%. The analysts project a further increase of 16.6% to meet their average projected price target.

Why the PEG Ratio is Highlighted

Given that growth is a key component of a stock's expected return, the PEG ratio provides a simple way for investors to see how cheap a stock is relative to its growth rate and for comparing stocks to competitors. The lower the PEG ratio - lower than 1.0 is best - the more the stock may be undervalued given its future earnings expectations while a ratio greater than 1.0 generally suggests a stock is overvalued.

The PEG ratio should be used along with the balance sheet, debt burden, cash flow, or other valuation metrics that use the income statement. It's also important to understand things like a company's competitive advantage, its addressable market, and its long-term growth prospects.

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