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

Constellation Brands (STZ) closed the most recent trading day at $253.64, moving -1.5% from the previous trading session. This change lagged the S&P 500's 0.16% loss on the day. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq lost 0.03%.

Prior to today's trading, shares of the wine, liquor and beer company had gained 4.22% over the past month. This has lagged the Consumer Staples sector's gain of 4.61% and outpaced the S&P 500's gain of 1.83% in that time.

Investors will be hoping for strength from Constellation Brands as it approaches its next earnings release. The company is expected to report EPS of $2.96, down 5.13% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.4 billion, up 3.47% from the year-ago period.

STZ's full-year Zacks Consensus Estimates are calling for earnings of $11.09 per share and revenue of $9.54 billion. These results would represent year-over-year changes of +8.73% and +8.16%, respectively.

Investors might also notice recent changes to analyst estimates for Constellation Brands. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Constellation Brands is currently a Zacks Rank #3 (Hold).

Digging into valuation, Constellation Brands currently has a Forward P/E ratio of 23.22. For comparison, its industry has an average Forward P/E of 22.3, which means Constellation Brands is trading at a premium to the group.

It is also worth noting that STZ currently has a PEG ratio of 2.09. 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 2.09 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 57, putting it in the top 23% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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

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