Constellation Brands Inc.
) reached a new 52-week high of $71.22 on Dec 3, 2013 before
eventually closing at $71.19. 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 has amassed a
year-to-date return of 89.5%.
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The average volume of shares traded over the last 3 months was
approximately 1,571.2K. Moreover, the company currently trades at
a forward P/E of 23.9x, a 2.7% discount to the peer group average
of 24.56x. The last traded price is 4.9% below the Zacks
Consensus average analyst price target of $74.83. 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, this leading premium wine retailer has a
Zacks Rank #2 (Buy).
Constellation Brands' sustained focus on brand building and
initiatives to introduce new products in the wine and spirits
business are the major factors behind the stock's momentum. 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
). Moreover, Constellation Brands is enhancing its points of
distribution in retail and is effectively executing strategic
merchandising initiatives to boost sales.
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 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. Currently,
the Zacks Consensus Estimate stands at $2.98, which lies near the
high of the guidance range.
Apart from Constellation Brands, other stocks such as
Consolidated Graphics, Inc.
Miller Energy Resources, Inc.
) achieved new 52-week highs of $65.24 and $8.55, respectively on
Dec 3, 2013.