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Constellation Brands (STZ) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, Constellation Brands (STZ) closed at $159.85, marking a -0.42% move from the previous day. This move lagged the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, added 0.16%.

Prior to today's trading, shares of the wine, liquor and beer company had lost 7% over the past month. This has lagged the Consumer Staples sector's loss of 2.57% and the S&P 500's gain of 0.49% in that time.

STZ will be looking to display strength as it nears its next earnings release, which is expected to be April 4, 2019. In that report, analysts expect STZ to post earnings of $1.76 per share. This would mark a year-over-year decline of 7.37%. Our most recent consensus estimate is calling for quarterly revenue of $1.73 billion, down 1.98% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.23 per share and revenue of $8.05 billion, which would represent changes of +5.85% and +6.1%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for STZ. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 2.26% lower. STZ is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, STZ is currently trading at a Forward P/E ratio of 17.4. Its industry sports an average Forward P/E of 24.89, so we one might conclude that STZ is trading at a discount comparatively.

We can also see that STZ currently has a PEG ratio of 1.67. 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 was holding an average PEG ratio of 2.82 at yesterday's closing price.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 208, which puts it in the bottom 19% 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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