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Constellation Brands (STZ) Stock Sinks As Market Gains: What You Should Know

Constellation Brands (STZ) closed at $184.16 in the latest trading session, marking a -1.52% move from the prior day. Read More...
Constellation Brands (STZ) closed at $184.16 in the latest trading session, marking a -1.52% move from the prior day.

In the latest trading session, Constellation Brands (STZ) closed at $184.16, marking a -1.52% move from the previous day. This change lagged the S&P 500’s daily gain of 0.61%. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 0.53%.

Prior to today’s trading, shares of the wine, liquor and beer company had lost 9.74% over the past month. This has lagged the Consumer Staples sector’s loss of 2.27% and the S&P 500’s loss of 3.77% in that time.

Investors will be hoping for strength from STZ as it approaches its next earnings release, which is expected to be June 28, 2019. On that day, STZ is projected to report earnings of $2.09 per share, which would represent a year-over-year decline of 5%. Meanwhile, our latest consensus estimate is calling for revenue of $2.06 billion, up 0.79% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.56 per share and revenue of $7.78 billion. These totals would mark changes of -7.76% and -4.2%, respectively, from last year.

It is also important to note the 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.69% higher. STZ currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, STZ is holding a Forward P/E ratio of 21.84. This valuation marks a no noticeable deviation compared to its industry’s average Forward P/E of 21.84.

Also, we should mention that STZ has a PEG ratio of 2.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Beverages – Alcohol was holding an average PEG ratio of 3.38 at yesterday’s closing price.

The Beverages – Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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