Constellation Brands (STZ) Gains As Market Dips: What You Should Know
Constellation Brands (STZ) closed at $227.17 in the latest trading session, marking a +0.09% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.03%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.04%.
Heading into today, shares of the wine, liquor and beer company had gained 6.29% over the past month, outpacing the Consumer Staples sector's loss of 3.84% and the S&P 500's loss of 3.08% in that time.
STZ will be looking to display strength as it nears its next earnings release, which is expected to be January 4, 2019. On that day, STZ is projected to report earnings of $2.06 per share, which would represent year-over-year growth of 3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.91 billion, up 6.28% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.42 per share and revenue of $8.14 billion. These totals would mark changes of +8.03% and +7.28%, respectively, from last year.
Any recent changes to analyst estimates for STZ should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 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 has moved 0.94% higher. STZ currently has a Zacks Rank of #3 (Hold).
Investors should also note STZ's current valuation metrics, including its Forward P/E ratio of 24.09. Its industry sports an average Forward P/E of 24.09, so we one might conclude that STZ is trading at a no noticeable deviation comparatively.
We can also see that STZ currently has a PEG ratio of 2.2. 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. Beverages - Alcohol stocks are, on average, holding a PEG ratio of 2.56 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 227, which puts it in the bottom 11% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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