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Constellation Brands (STZ) Dips More Than Broader Markets: What You Should Know
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Constellation Brands (STZ - Free Report) closed at $257.07 in the latest trading session, marking a -0.11% move from the prior day. This move lagged the S&P 500's daily loss of 0.02%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.2%.
Heading into today, shares of the wine, liquor and beer company had lost 4.4% over the past month, lagging the Consumer Staples sector's loss of 2.56% and the S&P 500's loss of 3.25% in that time.
Constellation Brands will be looking to display strength as it nears 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.62 per share and revenue of $10.08 billion, which would represent changes of +9.11% and +6.67%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Constellation Brands. These revisions help to show the ever-changing nature of near-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 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 remained stagnant. Constellation Brands currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Constellation Brands has a Forward P/E ratio of 22.15 right now. For comparison, its industry has an average Forward P/E of 18.78, which means Constellation Brands is trading at a premium to the group.
Also, we should mention that STZ has a PEG ratio of 1.93. 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 1.83 as of yesterday's close.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 102, putting it in the top 41% 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.
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
Constellation Brands (STZ - Free Report) closed at $257.07 in the latest trading session, marking a -0.11% move from the prior day. This move lagged the S&P 500's daily loss of 0.02%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.2%.
Heading into today, shares of the wine, liquor and beer company had lost 4.4% over the past month, lagging the Consumer Staples sector's loss of 2.56% and the S&P 500's loss of 3.25% in that time.
Constellation Brands will be looking to display strength as it nears 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.62 per share and revenue of $10.08 billion, which would represent changes of +9.11% and +6.67%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Constellation Brands. These revisions help to show the ever-changing nature of near-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 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 remained stagnant. Constellation Brands currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Constellation Brands has a Forward P/E ratio of 22.15 right now. For comparison, its industry has an average Forward P/E of 18.78, which means Constellation Brands is trading at a premium to the group.
Also, we should mention that STZ has a PEG ratio of 1.93. 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 1.83 as of yesterday's close.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 102, putting it in the top 41% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.