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Patrick Anderson

The Best Options Trade for Constellation Brands (STZ) Earnings


Trades from $3

On Tuesday, October, 5th, Constellation Brands (STZ - Analyst Report) will release its Q2 earnings results before the bell. The company is a Zacks Rank 2 (Buy), and they were upgraded within the last 30 days due to upward revisions in their earnings estimates.

Dave will investigate Constellation Brands past earnings, look at what is currently going on with the company, and give us his thoughts on their upcoming earnings announcement.

Furthermore, Dave will uncover some potential options trades for investors looking to make a play on Constellation Brands ahead of earnings.

Constellation Brands in Focus

Constellation Brands (STZ - Analyst Report) is a leading international producer and marketer of beverage alcohol brands, with a broad portfolio across the wine, spirits and imported beer categories. The Company is the largest multi-category supplier of beverage alcohol in the United States; a leading producer and exporter of wine from Australia and New Zealand; and both a major producer and independent drinks wholesaler in the United Kingdom. Well-known brands in Constellation's portfolio include: Corona Extra, Pacifico, St. Pauli Girl, Black Velvet, and Fleischmann's.

Constellation Brands is expected to report earnings at $1.66 per share according to the Zacks Consensus Estimate. Last quarter they reported an earnings at $1.54 per share beating the Zack’s Consensus Estimate of $1.51 per share, and they have an average surprise of 8.89% over the last four quarters.

CONSTELLATN BRD Price, Consensus and EPS Surprise

CONSTELLATN BRD Price, Consensus and EPS Surprise | CONSTELLATN BRD Quote

Constellation Brands is trading around $166 a share, and they are near their 52-week high of $168.68 per share.

The Zacks Industry Rank classifies Constellation Brands in the alcoholic-beverage industry, and their industry is in the top 13%. The Alcohol Industry has seen strong growth in recent years thanks to consumer’s growing preference for wine, spirits and beer.  Constellation Brands has a strong presence in the beer-import market with their Corona and St. Pauli Girl brands; however, they face tough competition from Molson Coors (TAP - Analyst Report) , Castle Brands (STZ - Analyst Report) , SABMiller , and AB-Inbev (BUD - Snapshot Report) .

The biggest headwinds Constellation Brands is facing as of late is the explosions of microbreweries. Furthermore, large companies such as Molson Coors and Anheuser-Busch has bought out microbreweries. For example, Anheuser-Busch owns Goose Island while Coors owns Blue Moon Brewing. Therefore, investors need to keep in mind Constellation Brands face very tough competition from giants to mom and pop establishments making a name for themselves. 

Bottom Line

How should investors play Constellation Brands ahead of their earnings report? For insights on the best options trades, make sure to watch Dave Bartosiak at 1:30pm CST next Monday to see if he’ll be bullish, or bearish. If you are interested in Dave’s exclusive live streams and service, then sign up for Zacks Live Trader.