Constellation Brands Inc. (STZ): Today's Featured Food & Beverage Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Constellation Brands ( STZ) pushed the Food & Beverage industry higher today making it today's featured food & beverage winner. The industry as a whole closed the day up 0.4%. By the end of trading, Constellation Brands rose 74 cents (2.3%) to $33.41 on average volume. Throughout the day, 2.6 million shares of Constellation Brands exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in a price between $32.85-$33.63 after having opened the day at $32.91 as compared to the previous trading day's close of $32.67. Other companies within the Food & Beverage industry that increased today were: Tofutti Brands ( TOF), up 11.3%, S&W Seed Company ( SANW), up 9.1%, Reeds ( REED), up 6.7%, and Castle Brands Incorporated ( ROX), up 5.1%.
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Constellation Brands, Inc. produces and markets beverage alcohol in the United States and internationally. Constellation Brands has a market cap of $4.98 billion and is part of the consumer goods sector. The company has a P/E ratio of 15, equal to the average food & beverage industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 58.1% year to date as of the close of trading on Monday. Currently there are four analysts that rate Constellation Brands a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Constellation Brands as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Willamette Valley Vineyards ( WVVI), down 8.2%, Tianli Agritech ( OINK), down 7.2%, Agria Corporation ( GRO), down 3.9%, and SkyPeople Fruit Juice ( SPU), down 2.4%, were all laggards within the food & beverage industry with Tyson Foods ( TSN) being today's food & beverage industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the food & beverage industry could consider PowerShares Dynamic Food & Beverage ( PBJ) while those bearish on the food & beverage industry could consider PowerShares DB Agriculture Sht ETN ( ADZ).

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