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Constellation Brands (STZ) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Constellation Brands (STZ - Free Report) closed at $239.45, marking a -1.16% move from the previous day. This change lagged the S&P 500's daily loss of 1.14%. At the same time, the Dow lost 1.23%, and the tech-heavy Nasdaq lost 0.36%.

Heading into today, shares of the wine, liquor and beer company had gained 2.91% over the past month, outpacing the Consumer Staples sector's gain of 1.61% and the S&P 500's loss of 1.37% in that time.

Wall Street will be looking for positivity from Constellation Brands as it approaches its next earnings report date. This is expected to be January 6, 2022. The company is expected to report EPS of $2.82, down 8.74% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.28 billion, down 6.5% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.01 per share and revenue of $8.64 billion, which would represent changes of +0.4% and +0.34%, respectively, from the prior year.

Any recent changes to analyst estimates for Constellation Brands should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Constellation Brands currently has a Zacks Rank of #3 (Hold).

Investors should also note Constellation Brands's current valuation metrics, including its Forward P/E ratio of 24.21. This valuation marks a discount compared to its industry's average Forward P/E of 27.92.

We can also see that STZ currently has a PEG ratio of 3.22. 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 2.18 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 100, which puts it in the top 40% 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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