Why the Market Dipped But Constellation Brands (STZ) Gained Today
In the latest market close, Constellation Brands (STZ) reached $248.14, with a +0.04% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 1.02% for the day. Elsewhere, the Dow lost 1.04%, while the tech-heavy Nasdaq lost 1.65%.
The the stock of wine, liquor and beer company has risen by 0.39% in the past month, leading the Consumer Staples sector's loss of 1.15% and undershooting the S&P 500's gain of 3.64%.
Market participants will be closely following the financial results of Constellation Brands in its upcoming release. The company's earnings per share (EPS) are projected to be $2.13, reflecting a 7.58% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.12 billion, indicating a 5.88% increase compared to the same quarter of the previous year.
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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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 remained stagnant. Constellation Brands presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Constellation Brands is presently trading at a Forward P/E ratio of 18.7. This denotes a premium relative to the industry's average Forward P/E of 17.1.
It is also worth noting that STZ currently has a PEG ratio of 1.73. 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 2 based on yesterday's closing prices.
The Beverages - Alcohol industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 195, positioning it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Constellation Brands Inc (STZ) : Free Stock Analysis Report
