Why Constellation Brands (STZ) Stock Is Surging This Morning

NEW YORK (TheStreet) -- Shares of Constellation Brands, Inc.  (STZ) are surging 6.30% to $93.25 in pre-market trading on Wednesday after it raised its adjusted profit forecast to $4.10-$4.25 per share for the year ending Feb. 28, 2015 versus its previous guidance of $3.95-$4.15 per share.

Constellation's net income in the first quarter ended May 31 rose to $206.7 million, or $1.03 per share including items, up from $52.9 million, or 27 cents per share, a year earlier.

Analysts on average had expected a profit of 93 cents per share and $1.43 billion in net sales, according to Thomson Reuters.

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Separately, TheStreet Ratings team rates CONSTELLATION BRANDS as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate CONSTELLATION BRANDS (STZ) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, reasonable valuation levels, solid stock price performance and compelling growth 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."

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