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Constellation Brands (STZ) Falls More Steeply Than Broader Market: What Investors Need to Know

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Constellation Brands (STZ - Free Report) closed the most recent trading day at $240.31, moving -0.68% from the previous trading session. This move lagged the S&P 500's daily loss of 0.54%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq lost 0.84%.

Heading into today, shares of the wine, liquor and beer company had gained 0.11% over the past month, lagging the Consumer Staples sector's gain of 5.52% and the S&P 500's gain of 8.62% in that time.

Market participants will be closely following the financial results of Constellation Brands in its upcoming release. The company plans to announce its earnings on January 5, 2024. The company is forecasted to report an EPS of $3.04, showcasing a 7.42% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $2.56 billion, indicating a 4.91% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.87 per share and a revenue of $10.07 billion, indicating changes of +11.46% and +6.55%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Constellation Brands. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.

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, there's been a 0.05% fall in the Zacks Consensus EPS estimate. Right now, Constellation Brands possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Constellation Brands is presently being traded at a Forward P/E ratio of 20.39. This valuation marks a premium compared to its industry's average Forward P/E of 17.51.

We can additionally observe that STZ currently boasts a PEG ratio of 1.91. 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 1.96 based on yesterday's closing prices.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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