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Constellation Brands (STZ) Dips More Than Broader Markets: What You Should Know logo 6/9/2021

In the latest trading session, Constellation Brands (STZ) closed at $236.67, marking a -0.71% move from the previous day. This move lagged the S&P 500's daily loss of 0.18%.

Coming into today, shares of the wine, liquor and beer company had gained 1.85% in the past month. In that same time, the Consumer Staples sector gained 1.8%, while the S&P 500 gained 0.04%.

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 $2.44, up 6.09% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.06 billion, up 4.76% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.03 per share and revenue of $8.56 billion. These totals would mark changes of +0.6% and -0.59%, respectively, from last year.

It is also important to note the 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. STZ is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that STZ has a Forward P/E ratio of 23.76 right now. This valuation marks a discount compared to its industry's average Forward P/E of 31.39.

Also, we should mention that STZ has a PEG ratio of 4.11. 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 industry currently had an average PEG ratio of 4.11 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 113, which puts it in the top 45% 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.

To follow STZ in the coming trading sessions, be sure to utilize


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