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

·3 min read

In the latest trading session, Constellation Brands (STZ) closed at $219.49, marking a +0.71% move from the previous day. This change outpaced the S&P 500's 0.17% gain on the day. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.67%.

Coming into today, shares of the wine, liquor and beer company had lost 2.74% in the past month. In that same time, the Consumer Staples sector gained 0.24%, while the S&P 500 gained 0.25%.

Constellation Brands will be looking to display strength as it nears its next earnings release, which is expected to be April 6, 2023. The company is expected to report EPS of $1.87, down 21.1% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.03 billion, down 3.41% from the prior-year quarter.

Any recent changes to analyst estimates for Constellation Brands should also be noted by investors. Recent revisions tend to reflect the latest 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. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Constellation Brands currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Constellation Brands currently has a Forward P/E ratio of 18.85. This valuation marks a discount compared to its industry's average Forward P/E of 21.64.

Investors should also note that STZ has a PEG ratio of 2.05 right now. 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 1.96 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 90, which puts it in the top 36% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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