Back to top

Analyst Blog

Constellation Brands Inc.’s (STZ - Analyst Report) shares crafted a new 52-week high of $50.34 on Friday, May 3. This alcoholic beverage company eventually closed at $50.21, up 0.6% from the previous day’s session and generated a year-to-date return of approximately 33.7%. This Zacks Rank #2 (Buy) company currently trades at a forward P/E of 17.66x, a 5.5% discount to the peer group average of 18.69x.

A record of beating 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 forces that drove the company’s shares to a new high. The average volume of shares traded over the last 3 months is approximately 4,099K.

The recent fourth-quarter fiscal 2013 results have added to its upbeat performances. Constellation Brands posted adjusted earnings of 47 cents per share, surpassing the Zacks Consensus Estimate by a couple of cents. In the last 4 quarters, the company beat the Zacks Consensus Estimates by an average of 13.3%.

Net sales in the quarter increased 11% to $695.9 million from the year-ago quarter and surpassed the Zacks Consensus Estimate of $667.0 million. Net sales gained on the back of higher volumes and better product mix in the wine and spirits business, coupled with benefits from the Mark West acquisition.

Bolstered by a better-than-expected quarterly performance, the company expects its fiscal 2014 adjusted earnings in the range of $2.55–2.85 per share compared with $2.19 per share reported in fiscal 2013.

Further, we believe that Constellation Brands with its formidable portfolio of well-known brands, new product offerings and strategic initiatives to strengthen its foothold in the U.S., holds a promising future. Moreover, the company is enhancing its points of distribution in retail and is well executing its strategic merchandising initiatives, which will bolster sales.

Simultaneously, companies such as Beam, Inc. , Newell Rubbermaid Inc. (NWL - Analyst Report) and Dean Foods Company (DF - Analyst Report) achieved new 52-week highs of $68.17, $27.00 and $19.57, respectively, on Friday, May 3.

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
SIGNET JEWE… SIG 116.37 +7.72%
CHYRONHEGO… CHYR 2.72 +5.84%
US SILICA H… SLCA 70.72 +4.00%
MALLINCKROD… MNK 80.11 +2.32%
RF MICRO DE… RFMD 11.76 +2.31%