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Constellation Brands (STZ) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest market close, Constellation Brands (STZ - Free Report) reached $234.27, with a -1.13% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.2%. Meanwhile, the Dow lost 0.18%, and the Nasdaq, a tech-heavy index, lost 0.59%.

The wine, liquor and beer company's shares have seen an increase of 2.2% over the last month, not keeping up with the Consumer Staples sector's gain of 4.96% and the S&P 500's gain of 7.87%.

Investors will be eagerly watching for the performance of Constellation Brands in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.05, signifying a 7.77% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.56 billion, indicating a 5.06% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.87 per share and revenue of $10.07 billion. These totals would mark changes of +11.46% and +6.57%, respectively, from last 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has moved 0.01% lower. Right now, Constellation Brands possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Constellation Brands is presently trading at a Forward P/E ratio of 19.96. This signifies a premium in comparison to the average Forward P/E of 18.5 for its industry.

We can also see that STZ currently has a PEG ratio of 1.87. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Beverages - Alcohol industry had an average PEG ratio of 1.96 as trading concluded yesterday.

The Beverages - Alcohol industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 142, this industry ranks in the bottom 44% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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