Constellation Brands (STZ - Free Report) closed the most recent trading day at $164.68, moving -0.83% from the previous trading session. This change lagged the S&P 500's daily gain of 0.01%. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq added 0.78%.
STZ will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.87, down 15.38% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.07 billion, down 1.28% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.86 per share and revenue of $7.78 billion, which would represent changes of -13.82% and -6.71%, respectively, from the prior year.
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 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.
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. Within the past 30 days, our consensus EPS projection has moved 1.13% lower. STZ is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, STZ is holding a Forward P/E ratio of 21.12. Its industry sports an average Forward P/E of 25.05, so we one might conclude that STZ is trading at a discount comparatively.
Meanwhile, STZ's PEG ratio is currently 13.89. 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 3.97 at yesterday's closing price.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 31% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.