The S&P 500 was gaining 23.46 points, or 1.77%, to 1,352.50.
Shares of Constellation Brands rose 20.68% to $26.26. The beverage company is buying the 50% of Crown Imports that it doesn't already own from Anheuser-Busch (BUD) for $1.85 billion. The purchase follows Anheuser-Busch's deal that was announced Friday to buy the rest of Grupo Modelo that it doesn't own for more than $20 billion.
Constellation Brands shares hit a 52-week high on Friday of $26.89. The stock's 52-week low of $16.43 was set on Aug. 9.Constellation Brands trades at an estimated price-to-earnings ratio for next year of 9.5 times; the average among its peers is 21.47. For comparison, Beam (BEAM) has a higher forward P/E of 24. Seven of the 11 analysts who cover Constellation Brands rated it buy. Three analysts gave the stock a hold rating and one rated it sell. The stock has gained 27.38% year to date.
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