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Constellation Brands (STZ) Dips More Than Broader Markets: What You Should Know

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Constellation Brands (STZ) closed at $215.85 in the latest trading session, marking a -1.38% move from the prior day. This move lagged the S&P 500's daily loss of 0.72%. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 0.66%.

Prior to today's trading, shares of the wine, liquor and beer company had lost 10.08% over the past month. This has lagged the Consumer Staples sector's loss of 2% and the S&P 500's loss of 5.92% in that time.

Constellation Brands will be looking to display strength as it nears its next earnings release. On that day, Constellation Brands is projected to report earnings of $2.18 per share, which would represent year-over-year growth of 19.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.02 billion, up 3.41% from the year-ago period.

STZ's full-year Zacks Consensus Estimates are calling for earnings of $10.11 per share and revenue of $8.74 billion. These results would represent year-over-year changes of +1.4% and +1.42%, respectively.

Investors might also notice recent changes to analyst estimates for Constellation Brands. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Constellation Brands is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Constellation Brands is currently trading at a Forward P/E ratio of 21.66. This represents a discount compared to its industry's average Forward P/E of 24.46.

It is also worth noting that STZ currently has a PEG ratio of 2.42. 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. The Beverages - Alcohol industry currently had an average PEG ratio of 2.4 as of yesterday's close.

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 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.


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