Constellation Brands (STZ) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest market close, Constellation Brands (STZ) reached $261.86, with a -0.05% movement compared to the previous day. This change lagged the S&P 500's daily gain of 1.12%. Meanwhile, the Dow experienced a rise of 0.61%, and the technology-dominated Nasdaq saw an increase of 1.54%.
Shares of the wine, liquor and beer company have appreciated by 6.03% over the course of the past month, outperforming the Consumer Staples sector's gain of 1.98% and the S&P 500's gain of 2.06%.
The investment community will be paying close attention to the earnings performance of Constellation Brands in its upcoming release. The company is slated to reveal its earnings on April 11, 2024. The company is predicted to post an EPS of $2.13, indicating a 7.58% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.12 billion, showing a 5.88% escalation compared to the year-ago quarter.
Investors should also note any 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.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Constellation Brands is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Constellation Brands is currently being traded at a Forward P/E ratio of 19.75. This denotes a premium relative to the industry's average Forward P/E of 18.
Also, we should mention that STZ has a PEG ratio of 1.82. 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. As the market closed yesterday, the Beverages - Alcohol industry was having an average PEG ratio of 2.11.
The Beverages - Alcohol industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 229, placing it within the bottom 10% of over 250 industries.
The Zacks Industry Rank is ordered 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.
To follow STZ in the coming trading sessions, be sure to utilize Zacks.com.
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Constellation Brands Inc (STZ) : Free Stock Analysis Report
