Topic: How To Invest

Q: Duckhorn looks like a good new stock. Can I get your recommendation? Thank you.

Article Excerpt

A: Duckhorn Portfolio Inc., $22.70, symbol NAPA on New York (Shares outstanding: 114.4 million; Market cap: $2.7 billion; www.duckhornportfolio.com), is a Napa Valley winery founded in 1976 by Dan and Margaret Duckhorn. The winery pioneered Merlot wines in the Napa Valley. Since then, it has added multiple brands, grape varieties, and price points. It now includes over 843 acres of vineyards and ten wineries. The company sells its wines in the U.S. and 50 other countries, including Canada. Its brands include Duckhorn Vineyards, Migration, Decoy, Goldeneye and Canvasback. In 2018, it added American Pinot Noir wines through its acquisition of winery Kosta Browne. Duckhorn is focused exclusively on the luxury segment, which it sees as the U.S. industry’s fastest-growing market. The company’s wines sell at prices ranging from $20 to $200 a bottle. (Luxury wines are defined as those sold for $15 or higher.) On March 17, 2021, Duckhorn went public, using an IPO to sell 20 million shares at $15 per share. The company…