Constellation Brands Inc.
) soared to a new 52-week high of $60.59 on Thursday, Oct 3, as
the company benefited from the strong second-quarter fiscal 2014
performance and an upbeat outlook. Further, a consistent rise in
the volumes traded led to the stock's price appreciation. Average
volume of shares traded over the last 3 months stands at
This Zacks Rank #2 (Buy) beverage company closed trade at
$60.15 on Oct 3, marking a solid year-to-date return of
Moreover, the company currently trades at a forward P/E of
21.3x, a 7.6% premium to the industry group average of 19.8x. The
last traded price is 8.7% below the Zacks Consensus average
analyst price target of $65.40. Additionally, the company's
long-term estimated earnings per share (EPS) growth rate is
An impressive record of beating the quarterly earnings
expectations, sustained focus on brand building as well as
initiatives to introduce new products in its wine and spirits
business are the major attributes that drove the shares of
Constellation Brands to the new high.
The recent second-quarter fiscal 2014 results have added to
Constellation Brands' streak of upbeat performances.
Constellation Brands posted adjusted earnings of 96 cents per
share that rose from 71 cents in the year-ago quarter and
surpassed the Zacks Consensus Estimate of 89 cents by 7.9%,
primarily driven by consolidation of the company's newly acquired
Crown Imports business. In the last 5 quarters, the company has
beaten the Zacks Consensus Estimates by an average of 10.2%.
Net sales in the quarter rose over twofold year over year to
$1,459.8 million. The year-over-year increase in top line was
primarily attributable to the full consolidation of Crown Import
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.
Further, 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.
Apart from Constellation Brands, other stocks such as
) achieved new 52-week highs of $80.38, $32.13 and $9.74,
ENERGEN CORP (EGN): Free Stock Analysis
ENVESTNET INC (ENV): Free Stock Analysis
FERRO CORP (FOE): Free Stock Analysis Report
CONSTELLATN BRD (STZ): Free Stock Analysis
To read this article on Zacks.com click here.