Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high 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 $60.6 million.
- STZ has traded 1.1 million shares today.
- STZ is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in STZ with the Ticky from Trade-Ideas. See the FREE profile for STZ NOW at Trade-Ideas
More details on STZ:
Constellation Brands, Inc., together with its subsidiaries, produces and markets beverage alcohol. STZ has a PE ratio of 28.1. Currently there are 3 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 1.8 million shares per day over the past 30 days. Constellation has a market cap of $8.9 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.13 and a short float of 3.5% with 4.42 days to cover. Shares are up 52.4% year to date as of the close of trading on Wednesday.
rates Constellation Brands as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- STZ's revenue growth has slightly outpaced the industry average of 1.2%. Since the same quarter one year prior, revenues slightly increased by 6.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, STZ's share price has jumped by 69.38%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- CONSTELLATION BRANDS's earnings per share declined by 28.9% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, CONSTELLATION BRANDS reported lower earnings of $2.06 versus $2.14 in the prior year. This year, the market expects an improvement in earnings ($2.80 versus $2.06).
- 42.56% is the gross profit margin for CONSTELLATION BRANDS which we consider to be strong. Regardless of STZ's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, STZ's net profit margin of 7.85% is significantly lower than the industry average.
- Currently the debt-to-equity ratio of 1.69 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Even though the debt-to-equity ratio is weak, STZ's quick ratio is somewhat strong at 1.33, demonstrating the ability to handle short-term liquidity needs.
- You can view the full Constellation Brands Ratings Report.