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Constellation Brands Inc. (STZ - Free Report) looks in good shape, evident from its robust stock price movement that has surged 6.5% year to date. This comfortably eclipses the Zacks categorized Beverages – Alcoholic industry's drop of 5.4% in the same period. We believe Constellation’s stock is riding high on solid earnings track record, formidable brands portfolio, strategic endeavors and financial strength.
Armed with a formidable portfolio of well-known brands, Constellation Brands is the largest wine company in the world. Moreover, it has a dominant position in the premium wine and beer segment in the U.S. This provides it with a competitive edge and bolsters its well-established position in the market.
Further, the company stands to gain from its consistent focus on brand building and initiatives to include new products in its wine and spirits business. Owing to its strategic endeavors, the company is witnessing robust depletion trends and increasing market share in the U.S. wine and spirits category. This was well demonstrated by double-digit depletion growth at each of its recently acquired brands namely, Ballast Point, Prisoner and Meiomi brands, in second-quarter fiscal 2017.
Apart from this, Constellation Brands focuses on rebalancing its assets portfolio by expanding operations directed toward achieving business growth, while exiting the underperforming businesses. Recent acquisitions in the Beer, as well as Wine and Spirits segments include that of Obregon brewery from Grupo Modelo, the Ballast Point craft beer, premium wine brands from Charles Smith Wine; High West Distillery and The Prisoner Wine Company brands portfolio, among others.
Moreover, in an attempt to create value for its shareholders and strengthen financial position of its Wine and Spirits business, the company recently completed the sale of its Canadian Wine business to Ontario Teachers' Pension Plan for C$1.03 billion.
Coming to financials, the company flaunts a spectacular history with regard to its sales and earnings. Incidentally, in second-quarter fiscal 2017, both the top and bottom line registered double-digit growth and exceeded expectations. While the stellar quarter marked the company’s eighth consecutive earnings beat, Constellation Brands has surpassed sales estimates for six straight quarters now.
Encouraged by a splendid quarter, management raised its fiscal 2017 earnings outlook. Further, the company raised the lower end of its beer sales guidance for the same time frame, reflecting further confidence in its future performance. Owing to these factors, estimates for fiscal 2017 have been trending upward, since the earnings announcement.
These factors, along with Constellation Brands’ sound cash flows and constant shareholder-friendly moves speak volumes about its future potential. Notably, the company currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Another well-ranked stock in the same industry is The Boston Beer Co. Inc. (SAM - Free Report) , also carrying a Zacks Rank #2. Some stocks worth considering in the broader consumer staples sector include Dean Foods Co. and Ollie's Bargain Outlet Holdings Inc. (OLLI - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Boston Beer has jumped nearly 10.6% in the last three months. The stock has a long-term earnings growth rate of 12%.
Dean Foods, with a long-term earnings growth rate of 12%, has surged nearly 26.7% year to date.
Ollie's Bargain has gained a whopping 77.6% year to date. Moreover, it has a long-term earnings growth rate of 18.9%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>
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Constellation Brands' Strategies Drive Stock Momentum
Constellation Brands Inc. (STZ - Free Report) looks in good shape, evident from its robust stock price movement that has surged 6.5% year to date. This comfortably eclipses the Zacks categorized Beverages – Alcoholic industry's drop of 5.4% in the same period. We believe Constellation’s stock is riding high on solid earnings track record, formidable brands portfolio, strategic endeavors and financial strength.
Armed with a formidable portfolio of well-known brands, Constellation Brands is the largest wine company in the world. Moreover, it has a dominant position in the premium wine and beer segment in the U.S. This provides it with a competitive edge and bolsters its well-established position in the market.
Further, the company stands to gain from its consistent focus on brand building and initiatives to include new products in its wine and spirits business. Owing to its strategic endeavors, the company is witnessing robust depletion trends and increasing market share in the U.S. wine and spirits category. This was well demonstrated by double-digit depletion growth at each of its recently acquired brands namely, Ballast Point, Prisoner and Meiomi brands, in second-quarter fiscal 2017.
Apart from this, Constellation Brands focuses on rebalancing its assets portfolio by expanding operations directed toward achieving business growth, while exiting the underperforming businesses. Recent acquisitions in the Beer, as well as Wine and Spirits segments include that of Obregon brewery from Grupo Modelo, the Ballast Point craft beer, premium wine brands from Charles Smith Wine; High West Distillery and The Prisoner Wine Company brands portfolio, among others.
Moreover, in an attempt to create value for its shareholders and strengthen financial position of its Wine and Spirits business, the company recently completed the sale of its Canadian Wine business to Ontario Teachers' Pension Plan for C$1.03 billion.
Coming to financials, the company flaunts a spectacular history with regard to its sales and earnings. Incidentally, in second-quarter fiscal 2017, both the top and bottom line registered double-digit growth and exceeded expectations. While the stellar quarter marked the company’s eighth consecutive earnings beat, Constellation Brands has surpassed sales estimates for six straight quarters now.
CONSTELLATN BRD Price, Consensus and EPS Surprise
CONSTELLATN BRD Price, Consensus and EPS Surprise | CONSTELLATN BRD Quote
Encouraged by a splendid quarter, management raised its fiscal 2017 earnings outlook. Further, the company raised the lower end of its beer sales guidance for the same time frame, reflecting further confidence in its future performance. Owing to these factors, estimates for fiscal 2017 have been trending upward, since the earnings announcement.
These factors, along with Constellation Brands’ sound cash flows and constant shareholder-friendly moves speak volumes about its future potential. Notably, the company currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Another well-ranked stock in the same industry is The Boston Beer Co. Inc. (SAM - Free Report) , also carrying a Zacks Rank #2. Some stocks worth considering in the broader consumer staples sector include Dean Foods Co. and Ollie's Bargain Outlet Holdings Inc. (OLLI - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Boston Beer has jumped nearly 10.6% in the last three months. The stock has a long-term earnings growth rate of 12%.
Dean Foods, with a long-term earnings growth rate of 12%, has surged nearly 26.7% year to date.
Ollie's Bargain has gained a whopping 77.6% year to date. Moreover, it has a long-term earnings growth rate of 18.9%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>