Constellation Brands (STZ) closed at $203.78 in the latest trading session, marking a -0.14% move from the prior day. This change was narrower than the S&P 500's 0.31% loss on the day. At the same time, the Dow lost 0.52%, and the tech-heavy Nasdaq lost 0.28%.
Heading into today, shares of the wine, liquor and beer company had gained 4.97% over the past month, outpacing the Consumer Staples sector's gain of 1.67% and the S&P 500's gain of 2.92% in that time.
STZ will be looking to display strength as it nears its next earnings release, which is expected to be October 3, 2019. In that report, analysts expect STZ to post earnings of $2.62 per share. This would mark a year-over-year decline of 8.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.33 billion, up 1.42% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.35 per share and revenue of $7.90 billion. These totals would mark changes of -10.04% and -2.61%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for STZ. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.18% lower. STZ is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that STZ has a Forward P/E ratio of 24.44 right now. For comparison, its industry has an average Forward P/E of 24.26, which means STZ is trading at a premium to the group.
Investors should also note that STZ has a PEG ratio of 3.06 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. Beverages - Alcohol stocks are, on average, holding a PEG ratio of 3.3 based on yesterday's closing prices.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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