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Constellation Brands (STZ) Gains As Market Dips: What You Should Know
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Constellation Brands (STZ - Free Report) closed at $242.42 in the latest trading session, marking a +0.02% move from the prior day. This change outpaced the S&P 500's 0.45% loss on the day. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 3.58%.
Prior to today's trading, shares of the wine, liquor and beer company had gained 4.08% over the past month. This has outpaced the Consumer Staples sector's gain of 0.38% and lagged the S&P 500's gain 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 June 30, 2023. The company is expected to report EPS of $2.82, up 6.02% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.48 billion, up 4.9% from the year-ago period.
STZ's full-year Zacks Consensus Estimates are calling for earnings of $11.65 per share and revenue of $10.05 billion. These results would represent year-over-year changes of +9.39% and +6.34%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 has moved 0.49% higher. Constellation Brands is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Constellation Brands is currently trading at a Forward P/E ratio of 20.8. For comparison, its industry has an average Forward P/E of 20.35, which means Constellation Brands is trading at a premium to the group.
It is also worth noting that STZ currently has a PEG ratio of 1.86. 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. Beverages - Alcohol stocks are, on average, holding a PEG ratio of 2.31 based on yesterday's closing prices.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Constellation Brands (STZ) Gains As Market Dips: What You Should Know
Constellation Brands (STZ - Free Report) closed at $242.42 in the latest trading session, marking a +0.02% move from the prior day. This change outpaced the S&P 500's 0.45% loss on the day. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 3.58%.
Prior to today's trading, shares of the wine, liquor and beer company had gained 4.08% over the past month. This has outpaced the Consumer Staples sector's gain of 0.38% and lagged the S&P 500's gain 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 June 30, 2023. The company is expected to report EPS of $2.82, up 6.02% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.48 billion, up 4.9% from the year-ago period.
STZ's full-year Zacks Consensus Estimates are calling for earnings of $11.65 per share and revenue of $10.05 billion. These results would represent year-over-year changes of +9.39% and +6.34%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 has moved 0.49% higher. Constellation Brands is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Constellation Brands is currently trading at a Forward P/E ratio of 20.8. For comparison, its industry has an average Forward P/E of 20.35, which means Constellation Brands is trading at a premium to the group.
It is also worth noting that STZ currently has a PEG ratio of 1.86. 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. Beverages - Alcohol stocks are, on average, holding a PEG ratio of 2.31 based on yesterday's closing prices.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.