Why Constellation Brands (STZ) Outpaced the Stock Market Today
Constellation Brands (STZ) closed the most recent trading day at $245.61, moving +0.14% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 0.32%.
Coming into today, shares of the wine, liquor and beer company had lost 3.06% in the past month. In that same time, the Consumer Staples sector gained 2.56%, while the S&P 500 gained 2.99%.
The investment community will be closely monitoring the performance of Constellation Brands in its forthcoming earnings report. 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 5.88% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $11.90 per share and a revenue of $9.94 billion, demonstrating changes of +11.74% and +5.13%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Constellation Brands. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.1% rise in the Zacks Consensus EPS estimate. Constellation Brands currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Constellation Brands has a Forward P/E ratio of 20.62 right now. For comparison, its industry has an average Forward P/E of 17.06, which means Constellation Brands is trading at a premium to the group.
One should further note that STZ currently holds a PEG ratio of 1.9. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. STZ's industry had an average PEG ratio of 2.05 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 180, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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
