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Constellation Brands (STZ) Gains But Lags Market: What You Should Know

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Constellation Brands (STZ - Free Report) closed the most recent trading day at $222.13, moving +1.11% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.14%. Elsewhere, the Dow gained 1.82%, while the tech-heavy Nasdaq added 0.12%.

Heading into today, shares of the wine, liquor and beer company had lost 6.06% over the past month, outpacing the Consumer Staples sector's loss of 7.4% and lagging the S&P 500's loss of 5.01% in that time.

Investors will be hoping for strength from Constellation Brands as it approaches its next earnings release, which is expected to be April 7, 2022. 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%. Our most recent consensus estimate is calling for quarterly revenue of $2.02 billion, up 3.36% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Constellation Brands. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.26% lower. Constellation Brands is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, Constellation Brands currently has a Forward P/E ratio of 19.07. Its industry sports an average Forward P/E of 20.6, 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 2.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Beverages - Alcohol was holding an average PEG ratio of 2.13 at yesterday's closing price.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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