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 down 0.6%. By the end of trading, Constellation Brands rose 54 cents (1.6%) to $35.32 on heavy volume. Throughout the day, 6.6 million shares of Constellation Brands exchanged hands as compared to its average daily volume of 2.6 million shares. The stock ranged in a price between $35.05-$35.96 after having opened the day at $35.26 as compared to the previous trading day's close of $34.78. Other companies within the Food & Beverage industry that increased today were: Reeds ( REED), up 5.8%, Seneca Foods Corp. Class A ( SENEA), up 4.4%, Limoneira ( LMNR), up 3.1%, and China Marine Food Group ( CMFO), up 2.9%.
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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 $5.59 billion and is part of the consumer goods sector. The company has a P/E ratio of 16.8, below the average food & beverage industry P/E ratio of 17.5 and below the S&P 500 P/E ratio of 17.7. Shares are up 68.3% year to date as of the close of trading on Tuesday. 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, Tofutti Brands ( TOF), down 11.3%, Tianli Agritech ( OINK), down 8.7%, Bridgford Foods Corporation ( BRID), down 6.7%, and Monster Beverage ( MNST), down 5.5%, were all laggards within the food & beverage industry with PepsiCo ( PEP) 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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