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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 the most recent trading day at $258.27, moving -1.44% from the previous trading session. This change lagged the S&P 500's daily loss of 1.35%. At the same time, the Dow lost 1.08%, and the tech-heavy Nasdaq lost 1.87%.

Prior to today's trading, shares of the wine, liquor and beer company had lost 3.73% over the past month. This has lagged the Consumer Staples sector's loss of 3.72% and the S&P 500's loss of 2.06% in that time.

Constellation Brands will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.34, up 5.36% from the prior-year quarter. 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.

Any recent changes to analyst estimates for Constellation Brands should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Constellation Brands is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Constellation Brands's current valuation metrics, including its Forward P/E ratio of 22.55. This represents a premium compared to its industry's average Forward P/E of 18.99.

Also, we should mention that STZ has a PEG ratio of 1.97. 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 was holding an average PEG ratio of 1.8 at yesterday's closing price.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 37% 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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