Back to top

Image: Bigstock

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

Read MoreHide Full Article

Constellation Brands (STZ - Free Report) closed at $224.52 in the latest trading session, marking a -1.41% move from the prior day. This move lagged the S&P 500's daily loss of 1.23%. Meanwhile, the Dow lost 1.29%, and the Nasdaq, a tech-heavy index, lost 0.14%.

Heading into today, shares of the wine, liquor and beer company had gained 4.97% over the past month, outpacing the Consumer Staples sector's loss of 2.67% and lagging the S&P 500's gain of 5.04% 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 April 7, 2022. The company is expected to report EPS of $2.16, up 18.68% from the prior-year quarter. 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. These revisions help to show the ever-changing nature of 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.26% lower. Constellation Brands is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, Constellation Brands is currently trading at a Forward P/E ratio of 19.76. Its industry sports an average Forward P/E of 21.93, so we one might conclude that Constellation Brands is trading at a discount comparatively.

Investors should also note that STZ has a PEG ratio of 2.21 right now. 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. STZ's industry had an average PEG ratio of 2.21 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 107, which puts it in the top 43% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Constellation Brands Inc (STZ) - free report >>

Published in