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Constellation Brands (STZ) Outpaces Stock Market Gains: What You Should Know

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Constellation Brands (STZ - Free Report) closed the most recent trading day at $185.68, moving +0.88% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.42%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.66%.

Prior to today's trading, shares of the wine, liquor and beer company had lost 4.62% over the past month. This has lagged the Consumer Staples sector's gain of 2.39% and the S&P 500's gain of 4.09% in that time.

Investors will be hoping for strength from STZ as it approaches its next earnings release. On that day, STZ is projected to report earnings of $1.91 per share, which would represent a year-over-year decline of 19.41%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.95 billion, down 1.2% from the year-ago period.

STZ's full-year Zacks Consensus Estimates are calling for earnings of $8.41 per share and revenue of $8.05 billion. These results would represent year-over-year changes of -9.38% and -0.86%, respectively.

Investors should also note any recent changes to analyst estimates for STZ. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.45% lower. STZ currently has a Zacks Rank of #3 (Hold).

Digging into valuation, STZ currently has a Forward P/E ratio of 21.88. This represents a discount compared to its industry's average Forward P/E of 23.57.

Also, we should mention that STZ has a PEG ratio of 2.77. 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 was holding an average PEG ratio of 3.15 at yesterday's closing price.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 198, putting it in the bottom 23% 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.

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