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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 the most recent trading day at $182.91, moving +0.47% from the previous trading session. This move lagged the S&P 500's daily gain of 0.72%. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.91%.
Heading into today, shares of the wine, liquor and beer company had lost 0.44% over the past month, lagging the Consumer Staples sector's gain of 2.99% and the S&P 500's gain of 2.64% in that time.
Investors will be hoping for strength from STZ as it approaches its next earnings release, which is expected to be January 8, 2020. In that report, analysts expect STZ to post earnings of $1.91 per share. This would mark 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 $8.48 per share and revenue of $8.05 billion. These results would represent year-over-year changes of -8.62% and -0.86%, respectively.
Investors should also note any 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.
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. The Zacks Consensus EPS estimate has moved 0.45% lower within the past month. STZ is currently a Zacks Rank #3 (Hold).
In terms of valuation, STZ is currently trading at a Forward P/E ratio of 21.48. For comparison, its industry has an average Forward P/E of 23.55, which means STZ is trading at a discount to the group.
We can also see that STZ currently has a PEG ratio of 2.72. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Beverages - Alcohol stocks are, on average, holding a PEG ratio of 3.13 based on yesterday's closing prices.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 188, which puts it in the bottom 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Constellation Brands (STZ) Gains But Lags Market: What You Should Know
Constellation Brands (STZ - Free Report) closed the most recent trading day at $182.91, moving +0.47% from the previous trading session. This move lagged the S&P 500's daily gain of 0.72%. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.91%.
Heading into today, shares of the wine, liquor and beer company had lost 0.44% over the past month, lagging the Consumer Staples sector's gain of 2.99% and the S&P 500's gain of 2.64% in that time.
Investors will be hoping for strength from STZ as it approaches its next earnings release, which is expected to be January 8, 2020. In that report, analysts expect STZ to post earnings of $1.91 per share. This would mark 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 $8.48 per share and revenue of $8.05 billion. These results would represent year-over-year changes of -8.62% and -0.86%, respectively.
Investors should also note any 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.
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. The Zacks Consensus EPS estimate has moved 0.45% lower within the past month. STZ is currently a Zacks Rank #3 (Hold).
In terms of valuation, STZ is currently trading at a Forward P/E ratio of 21.48. For comparison, its industry has an average Forward P/E of 23.55, which means STZ is trading at a discount to the group.
We can also see that STZ currently has a PEG ratio of 2.72. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Beverages - Alcohol stocks are, on average, holding a PEG ratio of 3.13 based on yesterday's closing prices.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 188, which puts it in the bottom 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.