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Constellation Brands (STZ) Dips More Than Broader Markets: What You Should Know

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Constellation Brands (STZ - Free Report) closed the most recent trading day at $211.14, moving -0.31% from the previous trading session. This move lagged the S&P 500's daily loss of 0.14%.

Heading into today, shares of the wine, liquor and beer company had lost 4.94% over the past month, lagging the Consumer Staples sector's loss of 0.2% and the S&P 500's gain of 3.13% in that time.

Wall Street will be looking for positivity from STZ as it approaches its next earnings report date. On that day, STZ is projected to report earnings of $2.84 per share, which would represent year-over-year growth of 2.9%. Our most recent consensus estimate is calling for quarterly revenue of $2.35 billion, up 3.81% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.04 per share and revenue of $8.59 billion, which would represent changes of +0.7% and -0.34%, respectively, from the prior year.

Investors should also note any 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.

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 0.02% lower. STZ is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note STZ's current valuation metrics, including its Forward P/E ratio of 21.09. This represents a discount compared to its industry's average Forward P/E of 26.23.

Meanwhile, STZ's PEG ratio is currently 3.49. 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. Beverages - Alcohol stocks are, on average, holding a PEG ratio of 2.59 based on yesterday's closing prices.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 212, which puts it in the bottom 17% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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