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 0.5%. By the end of trading, Constellation Brands fell $1.10 (-2.2%) to $48.80 on light volume. Throughout the day, 2,053,577 shares of Constellation Brands exchanged hands as compared to its average daily volume of 3,809,900 shares. The stock ranged in price between $48.72-$49.97 after having opened the day at $49.91 as compared to the previous trading day's close of $49.90. Other companies within the Food & Beverage industry that declined today were: Central Garden & Pet Company ( CENTA), down 16.0%, Central Garden & Pet Company ( CENT), down 12.3%, Craft Brew Alliance ( BREW), down 7.1% and Monster Beverage ( MNST), down 5.2%.
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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 $8.1 billion and is part of the consumer goods sector. The company has a P/E ratio of 24.6, above the S&P 500 P/E ratio of 17.7. Shares are up 41.0% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate Constellation Brands a buy, no analysts rate it a sell, and 3 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, 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, Green Mountain Coffee Roasters ( GMCR), down 27.8%, SodaStream International ( SODA), down 6.8%, Gruma S.A.B. de C.V ( GMK), down 5.6% and Dole Food ( DOLE), down 4.6% , were all gainers within the food & beverage industry with Companhia de Bebidas das Americas Ambev ( ABV) 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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