Constellation Brands (STZ) closed the most recent trading day at $201.17, moving -1.01% from the previous trading session. This move was narrower than the S&P 500’s daily loss of 2.41%. Meanwhile, the Dow lost 2.38%, and the Nasdaq, a tech-heavy index, lost 3.41%.
Heading into today, shares of the wine, liquor and beer company had gained 6.31% over the past month, outpacing the Consumer Staples sector’s gain of 1.69% and the S&P 500’s loss of 0.08% in that time.
Investors will be hoping for strength from STZ as it approaches its next earnings release. In that report, analysts expect STZ to post earnings of $2.09 per share. This would mark a year-over-year decline of 5%. Our most recent consensus estimate is calling for quarterly revenue of $2.06 billion, up 0.65% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.51 per share and revenue of $7.72 billion, which would represent changes of -8.3% and -4.85%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for STZ. 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.
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.
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 0.32% lower. STZ currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, STZ is holding a Forward P/E ratio of 23.9. This represents a discount compared to its industry’s average Forward P/E of 24.1.
We can also see that STZ currently has a PEG ratio of 2.78. 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. STZ’s industry had an average PEG ratio of 3.2 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 161, which puts it in the bottom 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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