Constellation Brands Inc.
) touched a new 52-week high of $58.71 on Sep 13, and eventually
closed trade at $58.70. The stock has been performing well on the
back of brand building and inorganic growth initiatives. This
specialty retailer has amassed a year-to-date return of 56.3%.
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The average volume of shares traded over the last 3 months was
approximately 1,667.3K. Moreover, the company currently trades at
a forward P/E of 20.50x, a 6.2% discount to the peer group
average of 21.86x. The last traded price is 7.4% below the Zacks
Consensus average analyst price target of $63.40. Additionally,
the company's long-term estimated earnings per share (EPS) growth
rate is 14.4%. Constellation Brands now carries a Zacks Rank #2
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. Considering the positive
impact from the recent acquisition of Grupo Modelo, management
raised its earnings guidance for fiscal 2014 to $2.60-$2.90 per
share from $2.55-$2.85 projected earlier. 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
Best Buy Co., Inc.
) achieved new 52-week highs of $27.22, $38.56 and $134.29,