Yahoo Finance Constellation Brands (STZ) Outpaces Stock Market Gains: What You Should Know
Constellation Brands (STZ) closed at $230.72 in the latest trading session, marking a +1.78% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.19%. At the same time, the Dow added 1.24%, and the tech-heavy Nasdaq gained 8.36%.
Heading into today, shares of the wine, liquor and beer company had lost 0.29% over the past month, lagging the Consumer Staples sector's gain of 0.67% and outpacing the S&P 500's loss of 0.54% in that time.
Constellation Brands will be looking to display strength as it nears its next earnings release. 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.46 billion, up 4.11% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.60 per share and revenue of $9.98 billion, which would represent changes of +8.92% and +5.56%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Constellation Brands. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 0.6% higher. Constellation Brands is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Constellation Brands is currently trading at a Forward P/E ratio of 19.55. For comparison, its industry has an average Forward P/E of 21.07, which means Constellation Brands is trading at a discount to the group.
Also, we should mention that STZ has a PEG ratio of 1.75. 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. STZ's industry had an average PEG ratio of 2.23 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 94, which puts it in the top 38% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Constellation Brands Inc (STZ) : Free Stock Analysis Report
