Constellation Brands reports Q3 earnings

What's Happening With STZ View more about STZ >

Constellation Brands (STZ) will report fiscal third-quarter numbers before the market open January 9. Analysts expect earnings of $2.04 per share, up from $2.00 during the same period last year. STZ shares are down 23% over the last six months.

Technical Analysis

STZ was recently trading at $164.71 down $71.91 from its 12-month high and $8.46 above its 12-month low. InvestorsObserver’s Stock Score Report gives STZ a 18 long-term technical score and a 5 short-term technical score. The stock has recent support above $156.5 and recent resistance below $172.5. Of the 17 analysts who cover the stock 10 rate it Strong Buy, 1 rate it Buy, 4 rate it Hold, 0 rate it Sell, and 2 rate it Strong Sell, STZ gets a score of 33 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Constellation Brands has fallen sharply in recent months after hitting an all-time high earlier in the year. The stock is currently trading just above its 52-week low after making a small recovery over the last two weeks. Last quarter the company posted better than expected numbers on both the top and bottom line, but the results were not enough to prevent a selloff as the overall market turned lower. Constellation has grown earnings by 22% per annum over the last five years and is expected to continue growing profits by an annual average rate of 10.2% moving forward. The company made an aggressive move into the marijuana sector over the last year with a $4 billion investment in Canadian cannabis company Canopy Growth which could result in a sizable income stream moving forward as more locations move to legalize medical or recreational marijuana. The stock trades at less than 10 times earnings and has a forward P/E of just 16. The low valuation and decent growth estimates suggest the stock is currently undervalued as long as the company is able to hit its estimates, and analysts have a bullish average price target of $240.63 on the stock.

About Constellation Brands Inc.

Constellation Brands Inc produces beer, wine, and spirits and is one of the largest multicategory alcoholic beverage suppliers in the U.S. The firm has the exclusive right to import and market several Mexican beer brands in the U.S., including the Corona, Modelo, and Pacifico brand families, and it acquired Ballast Point, a craft beer brand, in 2015. Constellation Brands' wine and spirits portfolio includes the Robert Mondavi, Black Box, and Clos du Bois wine brands and Svedka vodka.

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  • Change:
    $-1.71 (-0.90%)
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  • Market Capitalization:
    $36.0 B
  • Day's Range:
    $187.54 - $190.03
  • Dividend Yield:
  • 52-week Range:
    $234 - $150.37
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  • Sector:
    Consumer Defensive
  • Industry:
    Beverages - Wineries & Distilleries
  • Analyst Average Recommendation:
    Moderate Buy

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