Constellation Brands (STZ) Ascends But Remains Behind Market: Some Facts to Note
Constellation Brands (STZ) ended the recent trading session at $244.90, demonstrating a +0.53% swing from the preceding day's closing price. This change lagged the S&P 500's 0.58% gain on the day. Elsewhere, the Dow gained 0.91%, while the tech-heavy Nasdaq added 0.3%.
Coming into today, shares of the wine, liquor and beer company had lost 3.59% in the past month. In that same time, the Consumer Staples sector gained 0.32%, while the S&P 500 gained 4.61%.
Investors will be eagerly watching for the performance of Constellation Brands in its upcoming earnings disclosure. On that day, Constellation Brands is projected to report earnings of $2.13 per share, which would represent year-over-year growth of 7.58%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.12 billion, indicating a 5.88% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.90 per share and revenue of $9.94 billion, indicating changes of +11.74% and +5.13%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Constellation Brands. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% higher. Right now, Constellation Brands possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Constellation Brands is presently being traded at a Forward P/E ratio of 20.48. For comparison, its industry has an average Forward P/E of 16.57, which means Constellation Brands is trading at a premium to the group.
Investors should also note that STZ has a PEG ratio of 1.89 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Beverages - Alcohol industry currently had an average PEG ratio of 1.89 as of yesterday's close.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Constellation Brands Inc (STZ) : Free Stock Analysis Report
