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 down 0.1%. By the end of trading, Constellation Brands fell $0.68 (-1.4%) to $47.79 on light volume. Throughout the day, 1,218,618 shares of Constellation Brands exchanged hands as compared to its average daily volume of 4,914,900 shares. The stock ranged in price between $47.67-$48.32 after having opened the day at $48.10 as compared to the previous trading day's close of $48.47. Other companies within the Food & Beverage industry that declined today were: Omega Protein Corporation ( OME), down 4.5%, Key Technology ( KTEC), down 4.2%, Boulder Brands ( SMBL), down 3.4% and Boulder Brands ( BDBD), down 3.4%.
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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 $7.7 billion and is part of the consumer goods sector. The company has a P/E ratio of 21.9, above the S&P 500 P/E ratio of 17.7. Shares are up 37.0% year to date as of the close of trading on Thursday.

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, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Central European Distribution ( CEDC), down 8.9%, Diamond Foods ( DMND), down 4.6%, Lifeway Foods ( LWAY), down 4.5% and Primo Water ( PRMW), down 4.0%.

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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