Constellation Brands (STZ) Stock Falls Amid Market Uptick: What Investors Need to Know
Constellation Brands (STZ) closed the most recent trading day at $242.55, moving -0.21% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.57% for the day. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq added 1.25%.
The wine, liquor and beer company's stock has dropped by 5.58% in the past month, falling short of the Consumer Staples sector's gain of 0.93% and the S&P 500's gain of 5.07%.
Investors will be eagerly watching for the performance of Constellation Brands in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.13, marking a 7.58% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.12 billion, reflecting a 6.19% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.88 per share and a revenue of $9.96 billion, indicating changes of +11.55% and +5.32%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Constellation Brands. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Constellation Brands holds a Zacks Rank of #3 (Hold).
Digging into valuation, Constellation Brands currently has a Forward P/E ratio of 20.45. This expresses a premium compared to the average Forward P/E of 16.79 of its industry.
Also, we should mention that STZ has a PEG ratio of 1.89. 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. As the market closed yesterday, the Beverages - Alcohol industry was having an average PEG ratio of 1.98.
The Beverages - Alcohol industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 33% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Constellation Brands Inc (STZ) : Free Stock Analysis Report
