Trade-Ideas LLC identified

Constellation Brands

(

STZ

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Constellation Brands as such a stock due to the following factors:

  • STZ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $297.3 million.
  • STZ traded 10,533 shares today in the pre-market hours as of 8:21 AM.
  • STZ is up 2.2% today from yesterday's close.

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More details on STZ:

Constellation Brands, Inc., together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company sells wine across various categories, including table wine, sparkling wine, and dessert wine. The stock currently has a dividend yield of 1.1%. STZ has a PE ratio of 3. Currently there are 9 analysts that rate Constellation Brands a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Constellation Brands has been 1.5 million shares per day over the past 30 days. Constellation has a market cap of $30.6 billion and is part of the consumer goods sector and food & beverage industry. Shares are up 10.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Constellation Brands as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 7.6%. Since the same quarter one year prior, revenues rose by 13.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 30.62% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • CONSTELLATION BRANDS has improved earnings per share by 12.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, CONSTELLATION BRANDS increased its bottom line by earning $5.19 versus $4.17 in the prior year. This year, the market expects an improvement in earnings ($6.25 versus $5.19).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Beverages industry. The net income increased by 13.4% when compared to the same quarter one year prior, going from $214.60 million to $243.40 million.
  • 49.44% is the gross profit margin for CONSTELLATION BRANDS which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.77% is above that of the industry average.

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