Constellation Brands (STZ) Dips More Than Broader Markets: What You Should Know

·3-min read

Constellation Brands (STZ) closed at $229.74 in the latest trading session, marking a -1.81% move from the prior day. This change lagged the S&P 500's daily loss of 0.04%.

Heading into today, shares of the wine, liquor and beer company had gained 0.68% over the past month, outpacing the Consumer Staples sector's loss of 0.04% and lagging the S&P 500's gain of 1.35% in that time.

Investors will be hoping for strength from STZ as it approaches its next earnings release, which is expected to be June 30, 2021. On that day, STZ is projected to report earnings of $2.44 per share, which would represent year-over-year growth of 6.09%. Our most recent consensus estimate is calling for quarterly revenue of $2.06 billion, up 4.76% from the year-ago period.

STZ's full-year Zacks Consensus Estimates are calling for earnings of $10.03 per share and revenue of $8.56 billion. These results would represent year-over-year changes of +0.6% and -0.59%, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. STZ currently has a Zacks Rank of #3 (Hold).

Investors should also note STZ's current valuation metrics, including its Forward P/E ratio of 23.32. This represents a discount compared to its industry's average Forward P/E of 30.91.

It is also worth noting that STZ currently has a PEG ratio of 4.03. 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. Beverages - Alcohol stocks are, on average, holding a PEG ratio of 4.03 based on yesterday's closing prices.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 127, putting it in the top 50% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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