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 $0.65 (-1.2%) to $51.51 on light volume. Throughout the day, 1,770,991 shares of Constellation Brands exchanged hands as compared to its average daily volume of 2,377,800 shares. The stock ranged in price between $51.20-$52.36 after having opened the day at $52.21 as compared to the previous trading day's close of $52.16. Other companies within the Food & Beverage industry that declined today were: Leading Brands ( LBIX), down 5.1%, SodaStream International ( SODA), down 4.3%, Dean Foods Company ( DF), down 4.2% and China Marine Food Group ( CMFO), down 2.6%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass

Constellation Brands, Inc., together with its subsidiaries, produces and markets beverage alcohol. Constellation Brands has a market cap of $8.6 billion and is part of the consumer goods sector. The company has a P/E ratio of 25.9, above the S&P 500 P/E ratio of 17.7. Shares are up 47.4% year to date as of the close of trading on Tuesday. Currently there are 4 analysts that rate Constellation Brands a buy, no analysts rate it a sell, and 2 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, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Willamette Valley Vineyards ( WVVI), down 6.3%, Crumbs Bake Shop ( CRMB), down 5.7%, Boston Beer Company ( SAM), down 5.5% and Primo Water ( PRMW), down 3.5%.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

null

More from Markets

Ackman Investment Buoys Lowe's; DraftKings Responds to FanDuel Merger -- ICYMI

Ackman Investment Buoys Lowe's; DraftKings Responds to FanDuel Merger -- ICYMI

Replay: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Replay: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

Red Robin Slumps After Earnings Miss

Red Robin Slumps After Earnings Miss

Owner of Moviepass Sees Stock Plummet

Owner of Moviepass Sees Stock Plummet