Constellation Brands (STZ) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Constellation Brands (STZ) closed at $237.06, marking a +1.18% move from the previous day. This change outpaced the S&P 500's 0.17% gain on the day. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.44%.
Coming into today, shares of the wine, liquor and beer company had gained 7.63% in the past month. In that same time, the Consumer Staples sector gained 1.18%, while the S&P 500 gained 3.19%.
Investors will be hoping for strength from Constellation Brands as it approaches its next earnings release. In that report, analysts expect Constellation Brands to post earnings of $2.82 per share. This would mark a year-over-year decline of 8.74%. Meanwhile, our latest consensus estimate is calling for revenue of $2.28 billion, down 6.5% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10 per share and revenue of $8.64 billion. These totals would mark changes of +0.3% and +0.34%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Constellation Brands. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% lower. Constellation Brands currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Constellation Brands is holding a Forward P/E ratio of 23.42. This valuation marks a discount compared to its industry's average Forward P/E of 26.18.
Also, we should mention that STZ has a PEG ratio of 3.12. 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 2.14 at yesterday's closing price.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 41% 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.
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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