In the latest trading session, Constellation Brands (STZ) closed at $256.69, marking a +0.66% move from the previous day. This move outpaced the S&P 500’s daily gain of 0.59%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq added 0.01%.
Heading into today, shares of the wine, liquor and beer company had gained 6.81% over the past month, lagging the Consumer Staples sector’s gain of 10.24% and the S&P 500’s gain of 6.89% in that time.
Constellation Brands will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.96, down 5.13% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.4 billion, up 3.47% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.09 per share and revenue of $9.54 billion. These totals would mark changes of +8.73% and +8.16%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Constellation Brands. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Constellation Brands is currently a Zacks Rank #3 (Hold).
Investors should also note Constellation Brands’s current valuation metrics, including its Forward P/E ratio of 22.99. This valuation marks a premium compared to its industry’s average Forward P/E of 22.37.
We can also see that STZ currently has a PEG ratio of 2.07. 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. The Beverages – Alcohol industry currently had an average PEG ratio of 2.05 as of yesterday’s close.
The Beverages – Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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.
To follow STZ in the coming trading sessions, be sure to utilize Zacks.com.
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