Constellation Brands (STZ) closed the most recent trading day at $247, moving +1.22% from the previous trading session. This change outpaced the S&P 500’s 0.92% gain on the day. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 1.06%.
Prior to today’s trading, shares of the wine, liquor and beer company had gained 8.03% over the past month. This has lagged the Consumer Staples sector’s gain of 9.93% and the S&P 500’s gain of 9.6% in that time.
Wall Street will be looking for positivity from Constellation Brands as it approaches its next earnings report date. In that report, analysts expect Constellation Brands to post earnings of $2.96 per share. This would mark a year-over-year decline of 5.13%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.4 billion, up 3.47% from the year-ago period.
STZ’s full-year Zacks Consensus Estimates are calling for earnings of $11.09 per share and revenue of $9.54 billion. These results would represent year-over-year changes of +8.73% and +8.16%, respectively.
Any recent changes to analyst estimates for Constellation Brands should also be noted by investors. 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.
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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Constellation Brands is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Constellation Brands’s current valuation metrics, including its Forward P/E ratio of 22. For comparison, its industry has an average Forward P/E of 20.08, which means Constellation Brands is trading at a premium to the group.
Meanwhile, STZ’s PEG ratio is currently 1.98. 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 2.02 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 95, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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