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 0.3%. By the end of trading, Constellation Brands rose 61 cents (1.4%) to $43.89 on light volume. Throughout the day, 1.5 million shares of Constellation Brands exchanged hands as compared to its average daily volume of five million shares. The stock ranged in a price between $43.32-$44.01 after having opened the day at $43.33 as compared to the previous trading day's close of $43.28. Other companies within the Food & Beverage industry that increased today were: Pilgrims Pride ( PPC), up 6.1%, Adecoagro ( AGRO), up 4.6%, Reeds ( REED), up 3.6%, and China New Borun Corporation ( BORN), up 3%.
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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 $6.96 billion and is part of the consumer goods sector. The company has a P/E ratio of 20.4, above the S&P 500 P/E ratio of 17.7. Shares are up 22.3% year to date as of the close of trading on Tuesday. 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 negative front, Dole Food ( DOLE), down 9%, MGP Ingredients ( MGPI), down 7.3%, Tianli Agritech ( OINK), down 4%, and Willamette Valley Vineyards ( WVVI), down 3.4%, were all laggards within the food & beverage industry with BRF - Brasil Foods ( BRFS) 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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