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Constellation Brands (STZ) Gains As Market Dips: What You Should Know

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Constellation Brands (STZ - Free Report) closed at $178.71 in the latest trading session, marking a +0.7% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.36%. Meanwhile, the Dow lost 0.65%, and the Nasdaq, a tech-heavy index, added 0.15%.

Investors will be hoping for strength from STZ as it approaches its next earnings release, which is expected to be July 1, 2020. The company is expected to report EPS of $1.81, down 18.1% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.98 billion, down 5.62% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.19 per share and revenue of $7.72 billion. These totals would mark changes of -10.2% and -7.47%, respectively, from last year.

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

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 4.11% higher. STZ currently has a Zacks Rank of #2 (Buy).

Digging into valuation, STZ currently has a Forward P/E ratio of 21.68. This valuation marks a discount compared to its industry's average Forward P/E of 28.98.

Investors should also note that STZ has a PEG ratio of 14.26 right now. 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. STZ's industry had an average PEG ratio of 4.6 as of yesterday's close.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% 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.


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