Constellation Brands (STZ) Gains But Lags Market: What You Should Know
Constellation Brands (STZ) closed the most recent trading day at $247.09, moving +0.11% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.17%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq increased by 0.37%.
Shares of the wine, liquor and beer company have depreciated by 1.59% over the course of the past month, underperforming the Consumer Staples sector's gain of 1.61% and the S&P 500's gain of 3.8%.
The investment community will be paying close attention to the earnings performance of Constellation Brands in its upcoming release. The company is predicted to post an EPS of $2.13, indicating a 7.58% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.12 billion, up 5.88% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.90 per share and a revenue of $9.94 billion, indicating changes of +11.74% and +5.13%, respectively, from the former year.
Any recent changes to analyst estimates for Constellation Brands should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.1% upward. Constellation Brands is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Constellation Brands is presently being traded at a Forward P/E ratio of 20.75. This indicates a premium in contrast to its industry's Forward P/E of 17.87.
We can also see that STZ currently has a PEG ratio of 1.92. 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. The Beverages - Alcohol industry had an average PEG ratio of 2.06 as trading concluded yesterday.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Constellation Brands Inc (STZ) : Free Stock Analysis Report
