Constellation Brands Inc. (STZ): Today's Highlighted Winner For Consumer Goods

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 closed the day up 0.5%. By the end of trading, Constellation Brands rose 73 cents (1.5%) to $48.57 on light volume. Throughout the day, 3.6 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 $48.20-$49.23 after having opened the day at $49.06 as compared to the previous trading day's close of $47.84. Other companies within the Consumer Goods sector that increased today were: Primo Water ( PRMW), up 19.4%, Navistar International ( NAV), up 6.6%, Motorcar Parts of America ( MPAA), up 6.1%, and Standard Register Company ( SR), up 6.1%.
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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 $7.73 billion and is part of the food & beverage industry. The company has a P/E ratio of 22.7, above the S&P 500 P/E ratio of 17.7. Shares are up 35.2% year to date as of the close of trading on Friday. 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, solid stock price performance, expanding profit margins, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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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