Constellation Brands Inc. (STZ): Today's Featured Consumer Goods 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 Consumer Goods sector higher today making it today's featured consumer goods winner. The sector as a whole was unchanged today. By the end of trading, Constellation Brands rose 56 cents (1.6%) to $35.42 on light volume. Throughout the day, 1.3 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 $34.79-$35.82 after having opened the day at $34.80 as compared to the previous trading day's close of $34.86. Other companies within the Consumer Goods sector that increased today were: Key Technology ( KTEC), up 12%, Westport Innovations ( WPRT), up 9.4%, Energizer Holdings ( ENR), up 7.6%, and Johnson Outdoors ( JOUT), up 7.5%.
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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 $5.69 billion and is part of the food & beverage industry. The company has a P/E ratio of 17.3, below the S&P 500 P/E ratio of 17.7. Shares are up 68.7% year to date as of the close of trading on Thursday. 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 revenue growth, attractive valuation levels, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the negative front, ATC Venture Group ( ATC), down 23.7%, Tufco Technologies ( TFCO), down 16.6%, Coastal Contacts ( COA), down 12.9%, and Physicians Formula Holdings ( FACE), down 8.6%, were all laggards within the consumer goods sector with Green Mountain Coffee Roasters ( GMCR) being today's consumer goods sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

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