Constellation Brands (STZ) Outpaces Stock Market Gains: What You Should Know
Constellation Brands (STZ) closed the most recent trading day at $228.30, moving +0.63% from the previous trading session. This change outpaced the S&P 500's 0.22% gain on the day. At the same time, the Dow added 0.5%, and the tech-heavy Nasdaq lost 6.33%.
Investors will be hoping for strength from Constellation Brands as it approaches its next earnings release. On that day, Constellation Brands is projected to report earnings of $1.91 per share, which would represent a year-over-year decline of 19.41%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.01 billion, down 4.36% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.64 per share and revenue of $9.47 billion, which would represent changes of +4.31% and +7.31%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Constellation Brands. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.13% lower within the past month. Constellation Brands is currently a Zacks Rank #4 (Sell).
Digging into valuation, Constellation Brands currently has a Forward P/E ratio of 21.32. This represents a premium compared to its industry's average Forward P/E of 20.01.
Investors should also note that STZ has a PEG ratio of 2.32 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. STZ's industry had an average PEG ratio of 1.81 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 14, which puts it in the top 6% 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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Constellation Brands Inc (STZ) : Free Stock Analysis Report
