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Constellation Brands (STZ) Gains But Lags Market: What You Should Know
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In the latest trading session, Constellation Brands (STZ - Free Report) closed at $215.01, marking a +1.19% move from the previous day. The stock lagged the S&P 500's daily gain of 1.5%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq added 0.52%.
Heading into today, shares of the wine, liquor and beer company had lost 9.32% over the past month, lagging the Consumer Staples sector's loss of 0.95% and the S&P 500's loss of 3.75% in that time.
Constellation Brands will be looking to display strength as it nears its next earnings release. On that day, Constellation Brands is projected to report earnings of $2.16 per share, which would represent year-over-year growth of 18.68%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.02 billion, up 3.41% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.09 per share and revenue of $8.74 billion. These totals would mark changes of +1.2% and +1.42%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Constellation Brands. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.13% lower within the past month. Constellation Brands is currently a Zacks Rank #3 (Hold).
Digging into valuation, Constellation Brands currently has a Forward P/E ratio of 21.06. Its industry sports an average Forward P/E of 24.42, so we one might conclude that Constellation Brands is trading at a discount comparatively.
Also, we should mention that STZ has a PEG ratio of 2.36. 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. STZ's industry had an average PEG ratio of 2.36 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 217, which puts it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Constellation Brands (STZ) Gains But Lags Market: What You Should Know
In the latest trading session, Constellation Brands (STZ - Free Report) closed at $215.01, marking a +1.19% move from the previous day. The stock lagged the S&P 500's daily gain of 1.5%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq added 0.52%.
Heading into today, shares of the wine, liquor and beer company had lost 9.32% over the past month, lagging the Consumer Staples sector's loss of 0.95% and the S&P 500's loss of 3.75% in that time.
Constellation Brands will be looking to display strength as it nears its next earnings release. On that day, Constellation Brands is projected to report earnings of $2.16 per share, which would represent year-over-year growth of 18.68%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.02 billion, up 3.41% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.09 per share and revenue of $8.74 billion. These totals would mark changes of +1.2% and +1.42%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Constellation Brands. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.13% lower within the past month. Constellation Brands is currently a Zacks Rank #3 (Hold).
Digging into valuation, Constellation Brands currently has a Forward P/E ratio of 21.06. Its industry sports an average Forward P/E of 24.42, so we one might conclude that Constellation Brands is trading at a discount comparatively.
Also, we should mention that STZ has a PEG ratio of 2.36. 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. STZ's industry had an average PEG ratio of 2.36 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 217, which puts it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.