Yahoo Finance Constellation Brands (STZ) Gains But Lags Market: What You Should Know
Constellation Brands (STZ) closed the most recent trading day at $223.44, moving +0.46% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.85%. Elsewhere, the Dow gained 1.65%, while the tech-heavy Nasdaq added 13.7%.
Coming into today, shares of the wine, liquor and beer company had lost 0.99% in the past month. In that same time, the Consumer Staples sector gained 2.64%, while the S&P 500 lost 0.87%.
Wall Street will be looking for positivity from Constellation Brands as it approaches its next earnings report date. On that day, Constellation Brands is projected to report earnings of $2.80 per share, which would represent year-over-year growth of 5.26%. Our most recent consensus estimate is calling for quarterly revenue of $2.46 billion, up 4.11% from the year-ago period.
STZ's full-year Zacks Consensus Estimates are calling for earnings of $11.60 per share and revenue of $9.98 billion. These results would represent year-over-year changes of +8.92% and +5.56%, respectively.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 has moved 0.25% higher. Constellation Brands is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Constellation Brands has a Forward P/E ratio of 19.18 right now. For comparison, its industry has an average Forward P/E of 22.87, which means Constellation Brands is trading at a discount to the group.
Investors should also note that STZ has a PEG ratio of 1.72 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. The Beverages - Alcohol industry currently had an average PEG ratio of 2.61 as of yesterday's close.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% 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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Constellation Brands Inc (STZ) : Free Stock Analysis Report
