In the latest trading session, Constellation Brands (STZ - Free Report) closed at $194.20, marking a +1.82% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.3%. At the same time, the Dow 0%, and the tech-heavy Nasdaq gained 0.92%.
Heading into today, shares of the wine, liquor and beer company had lost 11.24% over the past month, lagging the Consumer Staples sector's loss of 1.45% and the S&P 500's loss of 4.37% in that time.
Investors will be hoping for strength from STZ as it approaches its next earnings release, which is expected to be January 4, 2019. On that day, STZ is projected to report earnings of $2.06 per share, which would represent year-over-year growth of 3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.91 billion, up 6.28% from the year-ago period.
STZ's full-year Zacks Consensus Estimates are calling for earnings of $9.43 per share and revenue of $8.14 billion. These results would represent year-over-year changes of +8.14% and +7.28%, respectively.
Any recent changes to analyst estimates for STZ should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. STZ is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note STZ's current valuation metrics, including its Forward P/E ratio of 20.23. This valuation marks a discount compared to its industry's average Forward P/E of 22.13.
We can also see that STZ currently has a PEG ratio of 1.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. STZ's industry had an average PEG ratio of 2.85 as of yesterday's close.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 215, which puts it in the bottom 16% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.