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Constellation Brands (STZ) Stock Moves -0.16%: What You Should Know

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The most recent trading session ended with Constellation Brands (STZ - Free Report) standing at $237.99, reflecting a -0.16% shift from the previouse trading day's closing. This move was narrower than the S&P 500's daily loss of 0.2%. Meanwhile, the Dow experienced a drop of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.07%.

The wine, liquor and beer company's stock has climbed by 3.81% in the past month, falling short of the Consumer Staples sector's gain of 5.4% and the S&P 500's gain of 7.49%.

Market participants will be closely following the financial results of Constellation Brands in its upcoming release. In that report, analysts expect Constellation Brands to post earnings of $3.04 per share. This would mark year-over-year growth of 7.42%. At the same time, our most recent consensus estimate is projecting a revenue of $2.56 billion, reflecting a 4.91% rise from the equivalent quarter last 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 +6.55%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Constellation Brands. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 has shifted 0.05% downward. At present, Constellation Brands boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Constellation Brands currently has a Forward P/E ratio of 20.09. This expresses a premium compared to the average Forward P/E of 18.56 of its industry.

Also, we should mention that STZ has a PEG ratio of 1.88. 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. By the end of yesterday's trading, the Beverages - Alcohol industry had an average PEG ratio of 1.98.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 44% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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