Back to top

Image: Bigstock

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

Read MoreHide Full Article

Constellation Brands (STZ - Free Report) closed the most recent trading day at $231.75, moving +1.04% from the previous trading session. This change lagged the S&P 500's 1.23% gain on the day. Meanwhile, the Dow gained 0.97%, and the Nasdaq, a tech-heavy index, added 0.44%.

Heading into today, shares of the wine, liquor and beer company had gained 6.38% over the past month, outpacing the Consumer Staples sector's loss of 0.92% and the S&P 500's gain of 4.69% 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. In that report, analysts expect Constellation Brands to post earnings of $2.16 per share. This would mark year-over-year growth of 18.68%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.02 billion, up 3.36% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Constellation Brands. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Constellation Brands currently has a Zacks Rank of #4 (Sell).

Investors should also note Constellation Brands's current valuation metrics, including its Forward P/E ratio of 19.91. For comparison, its industry has an average Forward P/E of 22.56, which means Constellation Brands is trading at a discount to the group.

Also, we should mention that STZ has a PEG ratio of 2.23. 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 2.23 as of yesterday's close.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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