Back to top

Analyst Blog

The shares of Constellation Brands Inc. (STZ - Analyst Report) went on to craft a new high of $49.23 on Monday, Apr 8. This alcoholic beverage company eventually closed at $48.57, up 1.5% from the previous day’s session and generated a year-to-date return of roughly 29.3%. The company currently trades at a forward P/E of 18.7x, a 3.1% discount to the peer group average of 19.3x.

An impressive record of beating the quarterly earnings expectations, sustained focus on brand building as well as initiatives to introduce new products in its wine and spirits business, are the major attributes that pushed the shares of Constellation Brands to a new high. Average volume of shares traded over the last 3 months stands at approximately 4,966K.

The recent third-quarter fiscal 2013 results have added to its streak of upbeat performances. Constellation Brands posted adjusted earnings of 63 cents per share that surged from 50 cents in the year-ago quarter and surpassed the Zacks Consensus Estimate of 55 cents by 14.6%, primarily driven by increased sales and improved margins. In the last 4 quarters, the company has beaten the Zacks Consensus Estimates by an average of 32.5%.

Net sales in the quarter increased 9% to $766.9 million from the year-ago quarter. The hike was driven by higher volumes and better product mix.

Bolstered by a strong quarterly performance, the company raised its fiscal 2013 adjusted earnings guidance to a range of $2.10–$2.20 per share, up from the earlier forecast of $2.00–$2.10. However, the projected earnings of this Zacks Rank #4 (Sell) stock reflects a decline of 10.3% to 6% from fiscal 2012.

Constellation Brands is slated to report its fourth quarter and fiscal 2013 results on Apr 10. The current Zacks Consensus Estimates for the quarter and fiscal year stand at 45 cents and $2.18 per share, respectively.

Alongside, companies such as Best Buy Co. Inc. (BBY - Analyst Report), Macy’s Inc. (M - Analyst Report) and Fifth & Pacific Companies Inc. achieved new 52-week highs of $26.29, $44.24 and $21.18, respectively, on Monday, Apr 8.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%