Constellation Brands (STZ) Dips More Than Broader Markets: What You Should Know
Constellation Brands (STZ) closed at $211 in the latest trading session, marking a -0.47% move from the prior day. This change lagged the S&P 500's daily loss of 0.15%. Elsewhere, the Dow lost 0.28%, while the tech-heavy Nasdaq added 3.16%.
Prior to today's trading, shares of the wine, liquor and beer company had lost 7.14% over the past month. This has lagged the Consumer Staples sector's loss of 1.77% and the S&P 500's loss of 5.39% in that time.
Constellation Brands will be looking to display strength as it nears its next earnings release, which is expected to be April 6, 2023. The company is expected to report EPS of $1.91, down 19.41% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.03 billion, down 3.44% from the year-ago period.
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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.59% lower. Constellation Brands is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note Constellation Brands's current valuation metrics, including its Forward P/E ratio of 18.34. Its industry sports an average Forward P/E of 20.47, so we one might conclude that Constellation Brands is trading at a discount comparatively.
Meanwhile, STZ's PEG ratio is currently 2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Beverages - Alcohol stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Constellation Brands Inc (STZ) : Free Stock Analysis Report
