Spiros Segalas (Trades, Portfolio), portfolio manager of the Harbor Capital Appreciation Fund, disclosed on Friday that he established positions in Nike Inc. (NKE, Financial), Constellation Brands Inc. (STZ, Financial) and AstraZeneca PLC (AZN, Financial) during the second quarter.
Nike
Segalas invested in 5,590,714 shares of Nike for an average price of $66.62 per share. The manager dedicated 1.28% of his portfolio to the position.
The Beaverton, Oregon-based company designs and markets various footwear, apparel, equipment and accessories products. CEO Mark Parker said on June 28 that revenue for the quarter ending May 31 increased 13% year over year, driven by several factors, including strong revenue growth in international markets and “a return to growth in North America.” Parker added that the year “set the foundation for Nike’s next wave of long-term, sustainable growth and profitability.”
GuruFocus ranks Nike’s business predictability 4.5 stars out of five and lists two positive investing signs: expanding operating margins and consistent revenue growth.
Among gurus with positions in Nike, Segalas has the second-largest stake. Frank Sands (Trades, Portfolio) has the largest stake with 8,523,059 shares.
Constellation Brands
Segalas invested in 780,279 shares of Constellation Brands for an average price of $222.70. The manager dedicated 0.61% of his portfolio to the position.
Constellation Brands produces various alcoholic beverages, including popular beers like Corona and Modelo. The company increased its full-year fiscal 2019 earnings per share guidance to a range between $10.93 and $11.23: according to CEO Rob Sands, Constellation Brands’ “investments in innovation for key brands” and other emerging opportunities expect to “yield excellent returns” going forward.
GuruFocus ranks Constellation Brands’ profitability 8 out of 10 as the company’s profit margins and returns outperform over 90% of global competitors. Additionally, Constellation Brands’ operating margin has increased approximately 9.70% per year over the past five years, a positive investing sign according to Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B) CEO Warren Buffett (Trades, Portfolio).
Steve Mandel (Trades, Portfolio), Daniel Loeb (Trades, Portfolio) and Steven Cohen (Trades, Portfolio) have the top three positions in Constellation Brands according to the guru trades page.
AstraZeneca
Segalas invested in 1,676,299 shares of AstraZeneca for an average price of $34.65. The manager dedicated 0.2% of his portfolio to the position.
U.K.-based AstraZeneca develops and markets pharmaceutical products for various therapeutic classes, including neuroscience, cardiovascular and respiratory. GuruFocus ranks the company’s profitability a modest 6 out of 10: although the company’s profit margins outperform over 70% of global competitors, AstraZeneca’s operating margin has dropped close to a 10-year low of 9% over the past five years.
GuruFocus lists several warning signs for AstraZeneca, including declining revenue over the trailing 12 months, increasing long-term debt and a price-sales ratio near a 10-year high.
See also
According to the top 10 holdings page, Segalas’ top six holdings are Jeff Bezos’ Amazon.com Inc. (AMZN, Financial), Netflix Inc. (NFLX, Financial), Bill Gates (Trades, Portfolio)’ Microsoft Inc. (MSFT, Financial), Alibaba Group Holding Ltd. (BABA, Financial), Apple Inc. (AAPL, Financial) and Mark Zuckerburg’s Facebook Inc. (FB, Financial). The manager added 135,311 shares of Amazon for an average price of $1,484.45 per share.
Disclosure: No positions.
