Constellation Brands (STZ - Free Report) closed the most recent trading day at $173.96, moving -0.46% from the previous trading session. This change lagged the S&P 500's 0.27% loss on the day. Elsewhere, the Dow lost 0.41%, while the tech-heavy Nasdaq added 0.09%.
Prior to today's trading, shares of the wine, liquor and beer company had gained 9.31% over the past month. This has outpaced the Consumer Staples sector's gain of 6.23% and the S&P 500's gain of 6.26% in that time.
STZ will be looking to display strength as it nears its next earnings release. In that report, analysts expect STZ to post earnings of $1.77 per share. This would mark a year-over-year decline of 6.84%. Our most recent consensus estimate is calling for quarterly revenue of $1.73 billion, down 2.08% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.20 per share and revenue of $8.06 billion. These totals would mark changes of +5.5% and +6.24%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for STZ. Recent revisions tend to reflect the latest near-term business trends. 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. 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. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. STZ is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, STZ currently has a Forward P/E ratio of 18.99. Its industry sports an average Forward P/E of 25.8, so we one might conclude that STZ is trading at a discount comparatively.
Investors should also note that STZ has a PEG ratio of 2.09 right now. 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. The Beverages - Alcohol was holding an average PEG ratio of 3.19 at yesterday's closing price.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 43% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.