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Constellation Brands (STZ) Stock Moves 1.79%: What You Should Know

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Constellation Brands (STZ - Free Report) closed at $237.06 in the latest trading session, marking a +1.79% move from the prior day. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq lost 2.33%.

Prior to today's trading, shares of the wine, liquor and beer company had gained 1.15% over the past month. This has outpaced the Consumer Staples sector's loss of 5.39% and the S&P 500's gain of 1.03% in that time.

Wall Street will be looking for positivity from Constellation Brands as it approaches its next earnings report date. The company is expected to report EPS of $2.80, up 5.26% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.46 billion, up 4.11% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.60 per share and revenue of $9.98 billion. These totals would mark changes of +8.92% and +5.56%, respectively, from last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Constellation Brands is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Constellation Brands is holding a Forward P/E ratio of 20.08. For comparison, its industry has an average Forward P/E of 20.08, which means Constellation Brands is trading at a no noticeable deviation to the group.

Also, we should mention that STZ has a PEG ratio of 1.8. 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 2.18 at yesterday's closing price.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% 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.

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