Priceline, Nike, Dollar Tree: Tiger Cub Stephen Mandel’s Most Trusted Consumer Stocks

Constellation Brands, Inc. (NYSE:STZ)

– Shares Owned by Lone Pine Capital (as of June 30): 6.67 Million
– Value of Lone Pine Capital’s Holding (as of June 30): $1.10 Billion

Billionaire Stephen Mandel’s firm raised its position in Constellation Brands, Inc. (NYSE:STZ) by an unlucky 13% during the second quarter to a rather ominous 6.66 million shares (6.67 million when rounded up, as we are wont to do). If you’re the superstitious type, you may have thought the holding cursed, but it has been anything but. Shares of the producer of alcoholic drinks have traded in a narrow, flat range in the third quarter after a big finish to the second quarter, and are up by 17% year-to-date. Constellation Brands inked a deal with the NFL’s Los Angeles Rams earlier this month which will see the company’s Corona Extra brand become an official partner of the team. One of the biggest benefits of the deal for Constellation Brands is gaining access to prominent in-stadium signage at Los Angeles Memorial Coliseum. Constellation Brands, Inc. (NYSE:STZ) was popular among the billionaire investors in our database during the second quarter, as 12 held its shares on June 30, up from ten at the end of March.

Dollar Tree, Inc. (NASDAQ:DLTR)

– Shares Owned by Lone Pine Capital (as of June 30): 13.36 Million
– Value of Lone Pine Capital’s Holding (as of June 30): $1.26 Billion

Lone Pine Capital’s Dollar Tree, Inc. (NASDAQ:DLTR) holding ranked as its second-largest overall on June 30, after the position was raised by 15% during the second quarter. In its first quarter investor letter, Lone Pine mentioned Dollar Tree as being the type of consumer stock that the fund likes, as it’s able to add value through acquisitions and is resistant to the encroachment of e-commerce and other headwinds that are troubling or will trouble other businesses in the years to come. Dollar Tree is scheduled to report its second quarter earnings right when this article is scheduled to be published (I blame those medaling U.S. athletes), so while I can’t say what it has announced, I can say that analysts are predicting big things of its quarter, in the form of $0.73 in EPS and $5.08 billion in sales. Dollar Tree continues to revamp the stable of Family Dollar stores that it purchased last year and recently announced the slashing of 370 jobs at the former headquarters of that formerly standalone company. Ken Heebner‘s Capital Growth Management snatched up a new stake of 365,000 shares of Dollar Tree, Inc. (NASDAQ:DLTR) in the second quarter.

Priceline Group Inc (NASDAQ:PCLN)

– Shares Owned by Lone Pine Capital (as of June 30): 1.12 Million
– Value of Lone Pine Capital’s Holding (as of June 30): $1.40 Billion

Lastly is Lone Pine’s top consumer stock pick and top overall pick, Priceline Group Inc (NASDAQ:PCLN), in which it buffed its stake by 41% during the second quarter, lifting the holding to a rather pricey line of $1.40 billion. Fellow Tiger Cub Chase Coleman is also a big fan of Priceline, with it ranking as Tiger Global’s third-most valuable public equity position on June 30. Tiger Global explained some of the reasons for its bullishness on the stock in its second quarter letter to investors, saying:

“The company benefits from low supplier concentration given the extremely fragmented hotel market globally and its relationships with over 800,000 hotels, vacation homes and urban residences. Superior customer conversion enables the company to spend more per click in paid marketing channels, further extending its dominant market share in online accommodations globally.”

Priceline continued to post strong revenue growth during its latest quarter despite weakening airline ticket sales, thanks to a big boost in room bookings. Car rental bookings also helped drive growth, which was actually stronger than it was during the same quarter of the previous year. As the room bookings growth indicates, Airbnb has not yet proven to be a direct threat to Priceline, despite some grave concerns to that effect in the midst of Airbnb’s ascent. Priceline Group Inc (NASDAQ:PCLN) was held by 85 hedge funds in our database on June 30, who collectively owned 11.70% of its shares.

Disclosure: None