Constellation Brands (STZ - Free Report) closed at $187.41 in the latest trading session, marking a -0.79% move from the prior day. This change lagged the S&P 500's daily gain of 0.21%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.27%.
Coming into today, shares of the wine, liquor and beer company had lost 10.93% in the past month. In that same time, the Consumer Staples sector lost 2.51%, while the S&P 500 lost 5.26%.
STZ will be looking to display strength as it nears its next earnings release. In that report, analysts expect STZ to post earnings of $2.09 per share. This would mark a year-over-year decline of 5%. Meanwhile, our latest consensus estimate is calling for revenue of $2.06 billion, up 0.79% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.56 per share and revenue of $7.78 billion, which would represent changes of -7.76% and -4.2%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for STZ. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.69% higher. STZ is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, STZ currently has a Forward P/E ratio of 22.06. This valuation marks a premium compared to its industry's average Forward P/E of 21.59.
It is also worth noting that STZ currently has a PEG ratio of 2.57. 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 3.14 as of yesterday's close.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 20% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.