Constellation Brands (STZ) Dips More Than Broader Markets: Here are some things you should know

Constellation Brands closed at $211.14 during the most recent trading session. This is a decrease of 0.31% from the previous day.

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This story originally appeared on Zacks

Constellation Brands closed its most recent trading session at $211.14. This is a decrease of 0.31% over the previous trading sessions. The S&P 500 lost 0.14% daily due to this move.

Today’s closing bell saw shares of the beer, wine and liquor company lose 4.94% in the last month. This was behind the 0.2% loss suffered by the Consumer Staples and S&P 500 gains of 3.13%.

As STZ approaches its next earnings reporting date, Wall Street will look for positive signs from STZ. STZ will report earnings at $2.84 per Share on that date, representing a 2.9% increase year-over-year. The most recent consensus estimate calls for quarterly revenues of $2.35 Billion, an increase of 3.81% over the previous year.

Our Zacks Consensus estimates for the entire year project earnings of $10.04 per Share and revenue of $8.59 Billion, which represents an increase of +0.7% & -0.34% respectively from the previous year.

It is important that investors keep track of any changes in analyst estimates for STZ. These changes help show how the near-term business trend landscape is constantly changing. Positive estimate revisions are a sign of optimism among analysts about the company’s future business prospects and profitability.

Research shows these changes in estimate are directly related to near-term stock price movements. This is a great opportunity for investors to capitalize by using Zacks Rank. The Zacks Rank takes into account these estimates and gives investors a straightforward, actionable rating system.

The Zacks Rank System ranges from #1 (Strong Buy), to #5 (Strong Sell). Since 1988, #1 stocks have returned an average +25% per year. The Zacks Consensus EPS estimate for the month has fallen 0.02%. STZ currently has a Zacks Rank #3 (Hold).

STZ’s latest valuation metrics should be noted by investors, such as its forward P/E ratio at 21.09. This is a significant discount when compared with the industry average Forward P/E at 26.23.

STZ currently has a PEG ratio of 3.49. The PEG ratio is a popular measure that’s similar to the well-known P/E. However, it also considers the expected earnings growth rate of the company. Alcohol stocks have an average PEG ratio 2.59, based on the closing price of yesterday.

Part of the Consumer Staples industry is the Beverages and Alcohol sector. The current Zacks Industry Rank for this industry is 212. This puts it among the top 17% of 250+ industries.

Zacks Industries Rank measures the strength and diversity of industry groups. It is based on the Zacks Rank average of individual stocks in the group. Research shows that top-rated industries are rated higher than the bottom 50% by an average of two to one.

Zacks.com has more details about all these metrics and many more.

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Publiated at 02:27:59, Wed. 01 Sep 2021

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