Constellation Brands (STZ) closed the most recent trading day at $175.21, moving +0.67% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.07%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, added 0.14%.
Prior to today's trading, shares of the wine, liquor and beer company had gained 8.83% over the past month. This has outpaced the Consumer Staples sector's gain of 6.17% and the S&P 500's gain of 6.28% in that time.
Wall Street will be looking for positivity from STZ as it approaches its next earnings report date. The company is expected to report EPS of $1.77, down 6.84% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.73 billion, down 2.08% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.20 per share and revenue of $8.05 billion. These totals would mark changes of +5.5% and +6.08%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for STZ. These recent revisions tend to reflect the evolving nature of short-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. Over the past month, the Zacks Consensus EPS estimate has moved 1.93% lower. STZ is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that STZ has a Forward P/E ratio of 18.91 right now. Its industry sports an average Forward P/E of 26.3, so we one might conclude that STZ is trading at a discount comparatively.
It is also worth noting that STZ currently has a PEG ratio of 2.08. 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 industry currently had an average PEG ratio of 3.13 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 162, which puts it in the bottom 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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