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Constellation Brands (STZ) Gains But Lags Market: What You Should Know

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Constellation Brands (STZ - Free Report) closed at $185.74 in the latest trading session, marking a +0.77% move from the prior day. The stock lagged the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.8%.

Heading into today, shares of the wine, liquor and beer company had lost 10.08% over the past month, lagging the Consumer Staples sector's gain of 1.12% and the S&P 500's gain of 2.47% in that time.

Wall Street will be looking for positivity from STZ as it approaches its next earnings report date. This is expected to be June 28, 2019. In that report, analysts expect STZ to post earnings of $2.09 per share. This would mark a year-over-year decline of 5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.06 billion, up 0.79% from the year-ago period.

STZ's full-year Zacks Consensus Estimates are calling for earnings of $8.56 per share and revenue of $7.78 billion. These results would represent year-over-year changes of -7.76% and -4.2%, respectively.

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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.69% higher. STZ is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, STZ is currently trading at a Forward P/E ratio of 21.52. This represents a discount compared to its industry's average Forward P/E of 23.17.

Meanwhile, STZ's PEG ratio is currently 2.51. 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 3.42 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 156, which puts it in the bottom 40% 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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