Constellation Brands (STZ) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Constellation Brands (STZ) closed at $180.30, marking a -1.69% move from the previous day. This move lagged the S&P 500's daily loss of 0.53%. Meanwhile, the Dow lost 1.04%, and the Nasdaq, a tech-heavy index, added 0.67%.

Investors will be hoping for strength from STZ as it approaches its next earnings release, which is expected to be July 1, 2020. On that day, STZ is projected to report earnings of $1.81 per share, which would represent a year-over-year decline of 18.1%. Meanwhile, our latest consensus estimate is calling for revenue of $1.98 billion, down 5.62% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.19 per share and revenue of $7.71 billion, which would represent changes of -10.2% and -7.62%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for STZ. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.11% higher. STZ is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note STZ's current valuation metrics, including its Forward P/E ratio of 22.4. Its industry sports an average Forward P/E of 29.7, so we one might conclude that STZ is trading at a discount comparatively.

Investors should also note that STZ has a PEG ratio of 14.74 right now. 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. Beverages - Alcohol stocks are, on average, holding a PEG ratio of 4.92 based on yesterday's closing prices.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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