Constellation Brands (STZ) Gains But Lags Market: What You Should Know
Constellation Brands (STZ) closed at $233.83 in the latest trading session, marking a +1.28% move from the prior day.
In the latest trading session, Constellation Brands (STZ) closed at $233.83, marking a +1.28% move from the previous day. The stock lagged the S&P 500's daily gain of 2.07%. At the same time, the Dow added 1.4%, and the tech-heavy Nasdaq gained 0.49%.
Coming into today, shares of the wine, liquor and beer company had gained 4.1% in the past month. In that same time, the Consumer Staples sector lost 1.75%, while the S&P 500 lost 2.08%.
Constellation Brands will be looking to display strength as it nears its next earnings release, which is expected to be January 6, 2022. The company is expected to report EPS of $2.82, down 8.74% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.28 billion, down 6.5% from the year-ago period.
STZ's full-year Zacks Consensus Estimates are calling for earnings of $10 per share and revenue of $8.64 billion. These results would represent year-over-year changes of +0.3% and +0.34%, respectively.
Investors might also notice recent changes to analyst estimates for Constellation Brands. Recent revisions tend to reflect the latest 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Constellation Brands is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Constellation Brands is currently trading at a Forward P/E ratio of 23.08. This represents a discount compared to its industry's average Forward P/E of 25.41.
Meanwhile, STZ's PEG ratio is currently 3.07. 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. The Beverages - Alcohol was holding an average PEG ratio of 2.14 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 115, which puts it in the top 46% 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.
To follow STZ in the coming trading sessions, be sure to utilize Zacks.com.
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Constellation Brands Inc (STZ): Free Stock Analysis Report
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