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Constellation Brands (STZ) Gains As Market Dips: What You Should Know

In the latest trading session, Constellation Brands (STZ) closed at $244.86, marking a +0.67% move from the previous day. This move outpaced the S&P 500's daily loss of 0.31%. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq lost 0.13%.

Prior to today's trading, shares of the wine, liquor and beer company had gained 8.94% over the past month. This has lagged the Consumer Staples sector's gain of 9.46% and the S&P 500's gain of 10.62% in that time.

Wall Street will be looking for positivity from Constellation Brands as it approaches its next earnings report date. The company is expected to report EPS of $2.96, down 5.13% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.4 billion, up 3.47% from the year-ago period.

STZ's full-year Zacks Consensus Estimates are calling for earnings of $11.09 per share and revenue of $9.54 billion. These results would represent year-over-year changes of +8.73% and +8.16%, respectively.

It is also important to note the recent changes to analyst estimates for Constellation Brands. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Constellation Brands currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Constellation Brands is holding a Forward P/E ratio of 21.93. Its industry sports an average Forward P/E of 19.88, so we one might conclude that Constellation Brands is trading at a premium comparatively.

Meanwhile, STZ's PEG ratio is currently 1.97. 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 was holding an average PEG ratio of 1.99 at yesterday's closing price.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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