Bear of the Day: Constellation Brands (STZ)

Markets are rocking and rolling, up at all-time highs with no signs of stopping. Of course, we all know that it can’t last forever. And when it comes time to pay the piper, the brutality will be swift. During that time, it’s best to find stocks with strong earnings trends which have retreated in price. You won’t want to be left holding the bag in a stock that’s down in price, and has seen its earnings move in the wrong direction.Today’s Bear of the Day is a stock that has seen its earnings estimates move in the wrong direction. I’m talking about Zacks Rank #5 (Strong Sell) Constellation Brands (STZ). Constellation Brands is a leading producer and marketer of alcoholic beverages, specializing in beer, wine, and spirits. The company owns popular beer brands like Corona, Modelo, and Pacifico in the U.S., along with a premium wine and spirits portfolio that includes Robert Mondavi, Kim Crawford, and Svedka Vodka. Constellation focuses on brand innovation, strategic acquisitions, and premiumization to drive growth in the beverage alcohol industry.Constellation Brands is not in the good graces of our Zacks Rank. The reason is that nine analysts have cut their earnings expectations for the current year over the last sixty days, while eight have done so for next year. The bearish moves have dropped our Zacks Consensus Estimates for the current year from $13.72 to $13.50 while next year’s number is off from $15.02 to $14.44.From a valuation perspective, the good news for investors is that Constellation is trading at 12x earnings. That’s cheaper than the industry average of 12.8x. If the company can right the ship and hold earnings steady, there’s a real chance at recovery.Constellation is in the Beverages – Alcohol industry which ranks in the Bottom 10% of our Zacks Industry Rank. There is one name in the industry which is in the good graces of our Zacks Industry Rank. That’s Zacks Rank #2 (Buy) Kirin (KNBWY). There are several Zacks Rank #3 (Hold) stocks including Molson Coors (TAP).Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Molson Coors Beverage Company (TAP): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report Kirin Holdings Co. (KNBWY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks