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Constellation Brands (STZ) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Constellation Brands (STZ - Free Report) closed at $267.68, marking a -1.06% move from the previous day. This change lagged the S&P 500's daily loss of 0.11%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, lost 0.68%.
Heading into today, shares of the wine, liquor and beer company had gained 6.28% over the past month, outpacing the Consumer Staples sector's gain of 0.91% and the S&P 500's gain of 1.43% in that time.
Investors will be hoping for strength from Constellation Brands as it approaches its next earnings release. In that report, analysts expect Constellation Brands to post earnings of $3.34 per share. This would mark year-over-year growth of 5.36%. Meanwhile, our latest consensus estimate is calling for revenue of $2.84 billion, up 7.12% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.62 per share and revenue of $10.08 billion. These totals would mark changes of +9.11% and +6.67%, respectively, from last year.
Any recent changes to analyst estimates for Constellation Brands should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Constellation Brands is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Constellation Brands currently has a Forward P/E ratio of 23.12. Its industry sports an average Forward P/E of 19.54, so we one might conclude that Constellation Brands is trading at a premium comparatively.
We can also see that STZ currently has a PEG ratio of 2.02. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Beverages - Alcohol stocks are, on average, holding a PEG ratio of 1.89 based on yesterday's closing prices.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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.
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Constellation Brands (STZ) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Constellation Brands (STZ - Free Report) closed at $267.68, marking a -1.06% move from the previous day. This change lagged the S&P 500's daily loss of 0.11%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, lost 0.68%.
Heading into today, shares of the wine, liquor and beer company had gained 6.28% over the past month, outpacing the Consumer Staples sector's gain of 0.91% and the S&P 500's gain of 1.43% in that time.
Investors will be hoping for strength from Constellation Brands as it approaches its next earnings release. In that report, analysts expect Constellation Brands to post earnings of $3.34 per share. This would mark year-over-year growth of 5.36%. Meanwhile, our latest consensus estimate is calling for revenue of $2.84 billion, up 7.12% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.62 per share and revenue of $10.08 billion. These totals would mark changes of +9.11% and +6.67%, respectively, from last year.
Any recent changes to analyst estimates for Constellation Brands should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Constellation Brands is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Constellation Brands currently has a Forward P/E ratio of 23.12. Its industry sports an average Forward P/E of 19.54, so we one might conclude that Constellation Brands is trading at a premium comparatively.
We can also see that STZ currently has a PEG ratio of 2.02. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Beverages - Alcohol stocks are, on average, holding a PEG ratio of 1.89 based on yesterday's closing prices.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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.