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Constellation Brands (STZ) Stock Moves -0.28%: What You Should Know

Zacks.com logo Zacks.com 6/3/2021

Constellation Brands (STZ) closed the most recent trading day at $238.65, moving -0.28% from the previous trading session. This change was narrower than the S&P 500's 0.36% loss on the day.

Heading into today, shares of the wine, liquor and beer company had lost 0.16% over the past month, lagging the Consumer Staples sector's gain of 3.41% and the S&P 500's gain of 0.75% in that time.

STZ will be looking to display strength as it nears its next earnings release. In that report, analysts expect STZ to post earnings of $2.44 per share. This would mark year-over-year growth of 6.09%. Our most recent consensus estimate is calling for quarterly revenue of $2.06 billion, up 4.76% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.03 per share and revenue of $8.56 billion, which would represent changes of +0.6% and -0.59%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for STZ. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, STZ is currently trading at a Forward P/E ratio of 23.85. For comparison, its industry has an average Forward P/E of 31.01, which means STZ is trading at a discount to the group.

Also, we should mention that STZ has a PEG ratio of 4.13. 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 4.13 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 121, which puts it in the top 48% 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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