Section 1: Company Fundamentals

1.1 Company Overview and Performance summary

Company Overview:

The Duckhorn Portfolio, Inc. (NYSE: NAPA) is a producer of luxury wines in North America. The Company sells its wines in approximately 50 states and over 50 countries at prices ranging from USD 20 to USD 200 per bottle under a portfolio of winery brands, including Duckhorn Vineyards, Decoy, Goldeneye, Paraduxx, Migration, Canvasback, Calera, Kosta Browne, Greenwing and Postmark.

This US Inflation Report covers the Company Overview & Price performance, Summary table, Key positives & negatives, Key metrics, Underlying commodities analysis, Company details, technical guidance & Stock recommendation, and Price chart.

Price Performance:

• NAPA's share price has corrected by 13.54% in the past three months. Similarly, in the long term, the stock has corrected by 31.55% over the past year.
• The stock is currently trading near to the lower end of its 52-week range of USD 39 and 52-week low price of USD 12.43, with the expectations of an upside movement from the current support levels.
• The price is currently below its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of around 38.42.

1.1 Summary Table

1.2 The Key Positives & Negatives

1.3 Key Metrics

The company has been successful in controlling its spending and giving consistency to the revenues even throughout times of growing inflation across the global economies, which has led to higher net margins for the company than its rivals. Additionally, the company has generated free cash flows that are more than three times higher year over year due to the increased efficiency in managing profitability and sales.

Section 2: Duckhorn Portfolio Inc (“Buy” at the current market price of USD 12.65, as of July 14, 2023, at 09:20 am PDT)

2.1 Company Details

2.2 Technical Guidance and Stock Recommendation  

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 14, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.

Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.