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Constellation Brands (STZ) Gains But Lags Market: What You Should Know

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Constellation Brands (STZ - Free Report) closed at $202.85 in the latest trading session, marking a +0.18% move from the prior day. This change lagged the S&P 500's 0.83% gain on the day. Elsewhere, the Dow gained 0.93%, while the tech-heavy Nasdaq added 0.9%.

Coming into today, shares of the wine, liquor and beer company had gained 0.09% in the past month. In that same time, the Consumer Staples sector lost 1.22%, while the S&P 500 lost 2.38%.

Investors will be hoping for strength from STZ as it approaches its next earnings release. In that report, analysts expect STZ to post earnings of $2.63 per share. This would mark a year-over-year decline of 8.36%. Our most recent consensus estimate is calling for quarterly revenue of $2.33 billion, up 1.42% from the year-ago period.

STZ's full-year Zacks Consensus Estimates are calling for earnings of $8.36 per share and revenue of $7.90 billion. These results would represent year-over-year changes of -9.91% and -2.61%, respectively.

Investors might also notice recent changes to analyst estimates for STZ. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. STZ is currently a Zacks Rank #4 (Sell).

Digging into valuation, STZ currently has a Forward P/E ratio of 24.21. Its industry sports an average Forward P/E of 24.06, so we one might conclude that STZ is trading at a premium comparatively.

Investors should also note that STZ has a PEG ratio of 3.04 right now. 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. The Beverages - Alcohol industry currently had an average PEG ratio of 3.15 as of yesterday's close.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow STZ in the coming trading sessions, be sure to utilize Zacks.com.


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