Constellation Brands (STZ) Gains But Lags Market: What You Should Know
Constellation Brands (STZ) closed the most recent trading day at $216.17, moving +0.36% from the previous trading session. This change lagged the S&P 500's 1.3% gain on the day. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 7.48%.
Heading into today, shares of the wine, liquor and beer company had lost 5.03% over the past month, lagging the Consumer Staples sector's loss of 1.2% and the S&P 500's loss of 2.95% in that time.
Constellation Brands will be looking to display strength as it nears its next earnings release, which is expected to be April 6, 2023. On that day, Constellation Brands is projected to report earnings of $1.91 per share, which would represent a year-over-year decline of 19.41%. Meanwhile, our latest consensus estimate is calling for revenue of $2.03 billion, down 3.44% from the prior-year quarter.
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. 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 0.59% lower within the past month. 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 18.63. This valuation marks a discount compared to its industry's average Forward P/E of 21.19.
Also, we should mention that STZ has a PEG ratio of 2.03. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. STZ's industry had an average PEG ratio of 1.93 as of yesterday's close.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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