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Constellation Brands (STZ) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Constellation Brands (STZ) closed at $201.95, marking a +1.9% move from the previous day. This change outpaced the S&P 500's 0.66% gain on the day. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 0.38%.

Heading into today, shares of the wine, liquor and beer company had lost 1.37% over the past month, outpacing the Consumer Staples sector's loss of 2.1% and the S&P 500's loss of 5.01% in that time.

STZ will be looking to display strength as it nears its next earnings release. On that day, STZ is projected to report earnings of $2.63 per share, which would represent a year-over-year decline of 8.36%. Meanwhile, our latest consensus estimate is calling for revenue of $2.33 billion, up 1.42% from the prior-year quarter.

STZ's full-year Zacks Consensus Estimates are calling for earnings of $8.36 per share and revenue of $7.90 billion. These results would represent year-over-year changes of -9.91% and -2.61%, respectively.

It is also important to note the recent changes to analyst estimates for STZ. These revisions help to show the ever-changing nature of near-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 has moved 0.1% lower within the past month. STZ currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that STZ has a Forward P/E ratio of 23.72 right now. For comparison, its industry has an average Forward P/E of 23.91, which means STZ is trading at a discount to the group.

Also, we should mention that STZ has a PEG ratio of 2.97. 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 3.3 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 159, which puts it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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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