Constellation Brands (STZ) Gains As Market Dips: What You Should Know
In the latest trading session, Constellation Brands (STZ) closed at $237.94, marking a +0.62% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.21%.
Heading into today, shares of the wine, liquor and beer company had lost 0.85% over the past month, lagging the Consumer Staples sector's gain of 2.51% and the S&P 500's gain of 0.59% in that time.
STZ will be looking to display strength as it nears its next earnings release. In that report, analysts expect STZ to post earnings of $2.44 per share. This would mark year-over-year growth of 6.09%. Meanwhile, our latest consensus estimate is calling for revenue of $2.06 billion, up 4.76% from the prior-year quarter.
STZ's full-year Zacks Consensus Estimates are calling for earnings of $10.03 per share and revenue of $8.56 billion. These results would represent year-over-year changes of +0.6% and -0.59%, respectively.
Any recent changes to analyst estimates for STZ should also be noted by investors. 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. STZ is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that STZ has a Forward P/E ratio of 23.57 right now. Its industry sports an average Forward P/E of 30.09, so we one might conclude that STZ is trading at a discount comparatively.
Meanwhile, STZ's PEG ratio is currently 4.08. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Beverages - Alcohol industry currently had an average PEG ratio of 3.91 as of yesterday's close.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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