In the latest trading session, Constellation Brands (STZ) closed at $184.49, marking a -0.85% move from the previous day. This change lagged the S&P 500's daily loss of 0.66%. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 0.55%.
Prior to today's trading, shares of the wine, liquor and beer company had lost 4.04% over the past month. This has lagged the Consumer Staples sector's gain of 0.46% and the S&P 500's gain of 1.77% in that time.
STZ will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.91, down 19.41% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.95 billion, down 1.2% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.41 per share and revenue of $8.05 billion. These totals would mark changes of -9.38% and -0.86%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for STZ. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.45% lower within the past month. STZ is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, STZ is holding a Forward P/E ratio of 22.12. Its industry sports an average Forward P/E of 23.22, so we one might conclude that STZ is trading at a discount comparatively.
It is also worth noting that STZ currently has a PEG ratio of 2.8. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Beverages - Alcohol stocks are, on average, holding a PEG ratio of 3.12 based on yesterday's closing prices.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 184, which puts it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Constellation Brands Inc (STZ) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research