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Constellation Brands (STZ) Stock Sinks As Market Gains: What You Should Know
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Constellation Brands (STZ - Free Report) closed at $240.86 in the latest trading session, marking a -1.89% move from the prior day. This change lagged the S&P 500's daily gain of 0.73%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 0.16%.
Prior to today's trading, shares of the wine, liquor and beer company had gained 0.42% over the past month. This has lagged the Consumer Staples sector's gain of 4.88% and outpaced the S&P 500's gain of 0.09% in that time.
Investors will be hoping for strength from Constellation Brands as it approaches its next earnings release, which is expected to be January 5, 2023. The company is expected to report EPS of $2.92, down 6.41% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.39 billion, up 3.19% from the year-ago period.
STZ's full-year Zacks Consensus Estimates are calling for earnings of $11 per share and revenue of $9.53 billion. These results would represent year-over-year changes of +7.84% and +8.04%, respectively.
It is also important to note the recent changes to analyst estimates for Constellation Brands. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 0.82% lower within the past month. Constellation Brands is currently a Zacks Rank #3 (Hold).
Digging into valuation, Constellation Brands currently has a Forward P/E ratio of 22.32. For comparison, its industry has an average Forward P/E of 22.3, which means Constellation Brands is trading at a premium to the group.
Investors should also note that STZ has a PEG ratio of 2.09 right now. 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 2.06 as of yesterday's close.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 52, putting it in the top 21% 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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Constellation Brands (STZ) Stock Sinks As Market Gains: What You Should Know
Constellation Brands (STZ - Free Report) closed at $240.86 in the latest trading session, marking a -1.89% move from the prior day. This change lagged the S&P 500's daily gain of 0.73%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 0.16%.
Prior to today's trading, shares of the wine, liquor and beer company had gained 0.42% over the past month. This has lagged the Consumer Staples sector's gain of 4.88% and outpaced the S&P 500's gain of 0.09% in that time.
Investors will be hoping for strength from Constellation Brands as it approaches its next earnings release, which is expected to be January 5, 2023. The company is expected to report EPS of $2.92, down 6.41% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.39 billion, up 3.19% from the year-ago period.
STZ's full-year Zacks Consensus Estimates are calling for earnings of $11 per share and revenue of $9.53 billion. These results would represent year-over-year changes of +7.84% and +8.04%, respectively.
It is also important to note the recent changes to analyst estimates for Constellation Brands. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 0.82% lower within the past month. Constellation Brands is currently a Zacks Rank #3 (Hold).
Digging into valuation, Constellation Brands currently has a Forward P/E ratio of 22.32. For comparison, its industry has an average Forward P/E of 22.3, which means Constellation Brands is trading at a premium to the group.
Investors should also note that STZ has a PEG ratio of 2.09 right now. 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 2.06 as of yesterday's close.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 52, putting it in the top 21% 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.