Constellation Brands Inc.
) eventually closed trade at a new 52-week high of $66.76 on Nov
8. Apart from strong second-quarter fiscal 2014 results and an
upbeat guidance, the stock has been performing well on the back
of brand building and inorganic growth initiatives. Notably, this
beverage company amassed a year-to-date return of 77.7%.
The average volume of shares traded over the last 3 months was
approximately 1,576K. Moreover, the company currently trades at a
forward P/E of 22.4x, a 5.6% discount to the peer group average
of 23.7x. The last traded price is 5.4% below the Zacks Consensus
average analyst price target of $70.60. Additionally, the
company's long-term estimated earnings per share (EPS) growth
rate is 14.9%, substantially higher than the peer group average
of 10.6%. At present, Constellation Brands has a Zacks Rank #1
Constellation Brands' sustained focus on brand building and
its initiatives to introduce new products in the wine and spirits
business are the major factors that drove the stock's price
appreciation. Owing to its strategic endeavors, the company is
witnessing strong depletion trends and increasing market share in
the U.S. wine and spirits category. Moreover, Constellation
Brands is enhancing its points of distribution in retail and is
effectively executing strategic merchandising initiatives to
The company's strategic initiatives to strengthen its foothold
in the U.S. wine industry and efforts to increase its portfolio
of brands are stimulating growth. This is well evident from the
company's recent acquisition of Grupo Modelo SAB de C.V.'s U.S.
beer business from
Anheuser-Busch InBev SA/NV
Considering the positive impact from the recent acquisition of
Grupo Modelo and strong second-quarter results, management raised
its guidance for fiscal 2014. Constellation Brands now expects
fiscal 2014 adjusted earnings to come in the range of $2.80-$3.10
per share, compared with $2.60-$2.90 projected earlier. On a
reported basis, earnings per share in fiscal 2014 are now
anticipated to be in the range of $9.30-$9.60. Going forward, the
company aims to enhance the distribution of the brand in order to
drive incremental profits.
Apart from Constellation Brands, other stocks such as
The Cato Corp
The WhiteWave Foods Company
) achieved new 52-week highs of $31.51 and $20.98, respectively
on Nov 8.
ANHEUSER-BU ADR (BUD): Free Stock Analysis
CONSTELLATN BRD (STZ): Free Stock Analysis
WHITEWAVE FOODS (WWAV): Free Stock Analysis
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