Constellation Brands (STZ) Dips More Than Broader Markets: What You Should Know

Constellation Brands (STZ) closed at $243.74 in the latest trading session, marking a -0.93% move from the prior day. This move lagged the S&P 500's daily loss of 0.47%. Meanwhile, the Dow lost 0.72%, and the Nasdaq, a tech-heavy index, lost 5.08%.

Heading into today, shares of the wine, liquor and beer company had gained 4.49% over the past month, outpacing the Consumer Staples sector's loss of 0.73% and lagging the S&P 500's gain of 5.36% in that time.

Constellation Brands will be looking to display strength as it nears its next earnings release, which is expected to be June 30, 2023. In that report, analysts expect Constellation Brands to post earnings of $2.81 per share. This would mark year-over-year growth of 5.64%. Our most recent consensus estimate is calling for quarterly revenue of $2.47 billion, up 4.7% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.61 per share and revenue of $10.04 billion, which would represent changes of +9.01% and +6.24%, respectively, from the prior year.

Any recent changes to analyst estimates for Constellation Brands should also be noted by investors. 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.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.49% higher. Constellation Brands is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Constellation Brands has a Forward P/E ratio of 21.2 right now. For comparison, its industry has an average Forward P/E of 21.07, which means Constellation Brands is trading at a premium to the group.

Meanwhile, STZ's PEG ratio is currently 1.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Beverages - Alcohol was holding an average PEG ratio of 2.28 at yesterday's closing price.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 84, putting it in the top 34% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Constellation Brands Inc (STZ): Free Stock Analysis Report

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