Constellation Brands (STZ) closed the most recent trading day at $170.59, moving +1.45% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.56%. Meanwhile, the Dow gained 1.77%, and the Nasdaq, a tech-heavy index, added 2.2%.
Coming into today, shares of the wine, liquor and beer company had gained 4.56% in the past month. In that same time, the Consumer Staples sector gained 3.89%, while the S&P 500 gained 6.41%.
Wall Street will be looking for positivity from STZ as it approaches its next earnings report date. This is expected to be April 4, 2019. On that day, STZ is projected to report earnings of $1.77 per share, which would represent a year-over-year decline of 6.84%. Our most recent consensus estimate is calling for quarterly revenue of $1.73 billion, down 2.08% from the year-ago period.
STZ's full-year Zacks Consensus Estimates are calling for earnings of $9.20 per share and revenue of $8.05 billion. These results would represent year-over-year changes of +5.5% and +6.08%, respectively.
It is also important to note the recent changes to analyst estimates for STZ. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 1.93% lower. STZ is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, STZ is holding a Forward P/E ratio of 18.27. This valuation marks a discount compared to its industry's average Forward P/E of 25.19.
Also, we should mention that STZ has a PEG ratio of 2.01. 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. Beverages - Alcohol stocks are, on average, holding a PEG ratio of 2.95 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 201, which puts it in the bottom 22% 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.
To follow STZ in the coming trading sessions, be sure to utilize Zacks.com.
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