Constellation Brands (STZ) Dips More Than Broader Market: What You Should Know
The latest trading session saw Constellation Brands (STZ) ending at $248.03, denoting a -0.79% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.12%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 0.41%.
The wine, liquor and beer company's stock has dropped by 0.24% in the past month, exceeding the Consumer Staples sector's loss of 1.3% and lagging the S&P 500's gain of 4.83%.
The upcoming earnings release of Constellation Brands will be of great interest to investors. 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.
Investors should also take note of any recent adjustments to analyst estimates for Constellation Brands. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Constellation Brands is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Constellation Brands's current valuation metrics, including its Forward P/E ratio of 18.85. This represents a premium compared to its industry's average Forward P/E of 17.04.
Meanwhile, STZ's PEG ratio is currently 1.74. 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 average PEG ratio for the Beverages - Alcohol industry stood at 2 at the close of the market yesterday.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Constellation Brands Inc (STZ) : Free Stock Analysis Report
