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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 $213.88 in the latest trading session, marking a -0.26% move from the prior day. This change lagged the S&P 500's daily gain of 0.13%.

Prior to today's trading, shares of the wine, liquor and beer company had lost 5.06% over the past month. This has lagged the Consumer Staples sector's loss of 1.24% and the S&P 500's gain of 1.82% in that time.

Investors will be hoping for strength from STZ as it approaches its next earnings release. In that report, analysts expect STZ to post earnings of $2.86 per share. This would mark year-over-year growth of 3.62%. Our most recent consensus estimate is calling for quarterly revenue of $2.37 billion, up 4.72% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.04 per share and revenue of $8.59 billion. These totals would mark changes of +0.7% and -0.29%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for STZ. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 remained stagnant. STZ is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that STZ has a Forward P/E ratio of 21.35 right now. This represents a discount compared to its industry's average Forward P/E of 26.63.

It is also worth noting that STZ currently has a PEG ratio of 3.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Beverages - Alcohol industry currently had an average PEG ratio of 2.69 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 224, which puts it in the bottom 12% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow STZ in the coming trading sessions, be sure to utilize Zacks.com.


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