Constellation Brands Inc. (STZ): Today's Featured Food & Beverage 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 Food & Beverage industry lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Constellation Brands fell 64 cents (-2%) to $30.91 on heavy volume. Throughout the day, 10.1 million shares of Constellation Brands exchanged hands as compared to its average daily volume of 2.7 million shares. The stock ranged in price between $30.41-$31.43 after having opened the day at $31.06 as compared to the previous trading day's close of $31.55. Other companies within the Food & Beverage industry that declined today were: Tofutti Brands ( TOF), down 6.4%, Tianli Agritech ( OINK), down 5.6%, Central European Distribution ( CEDC), down 4.6%, and Castle Brands Incorporated ( ROX), down 3.6%.
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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 $5.23 billion and is part of the consumer goods sector. The company has a P/E ratio of 15.3, below the S&P 500 P/E ratio of 17.7. Shares are down 10.8% year to date as of the close of trading on Monday. Currently there are three analysts that rate Constellation Brands a buy, no analysts rate it a sell, and three 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, reasonable valuation levels, solid stock price performance, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, MGP Ingredients ( MGPI), up 4.4%, China New Borun Corporation ( BORN), up 4.3%, Coffee Holding Company ( JVA), up 3.8%, and SunOpta ( STKL), up 3.8%, were all gainers within the food & beverage industry with Coca-Cola ( KO) being today's featured food & beverage industry leader.

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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