Constellation Brands Inc. (STZ): Today's Featured Consumer Goods Laggard

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 lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day down 0.2%. By the end of trading, Constellation Brands fell 43 cents (-1.2%) to $35.20 on light volume. Throughout the day, 1.2 million shares of Constellation Brands exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in price between $35.10-$35.87 after having opened the day at $35.71 as compared to the previous trading day's close of $35.63. Other companies within the Consumer Goods sector that declined today were: Castle Brands Incorporated ( ROX), down 9.6%, Exceed Company ( EDS), down 7.4%, SkyPeople Fruit Juice ( SPU), down 6.9%, and Annie's ( BNNY), down 5.8%.
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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 $5.68 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 72.4% year to date as of the close of trading on Wednesday. Currently there are four analysts that rate Constellation Brands a buy, no analysts rate it a sell, and one rates 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, revenue growth, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

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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