Constellation Brands Inc.
) soared to a new 52-week high of $45.92 on Friday, Mar 15, as
the company continues to gain from sturdy third-quarter fiscal
2013 performance and a strong outlook. Further, a consistent rise
in volumes traded is driving the stock up the charts of late.
Average volume of shares traded over the last 3 months stands at
approximately 4,827,380. Moreover, the stock currently trades at
a forward P/E of 17.2x, at a discount of 13.1% from the peer
group average of 19.8x.
This Zacks Rank #3 (Hold) alcoholic beverage company closed
trade at $45.75 on Mar 15, representing a solid year-to-date
return of approximately 21.8%, while gaining about 101.6% over
the past one year.
Stocks Growth Drivers
An impressive record of beating the quarterly earnings
expectations, an upbeat fiscal 2013 outlook, a sustained focus on
brand building as well as initiatives to introduce new products
in its wine and spirits business, are the major attributes that
pushed the shares of Constellation Brands to a new high.
The recent third-quarter fiscal 2013 results have added to its
streak of upbeat performances. Constellation Brands posted
adjusted earnings of 63 cents per share that surged over 21% from
the year-ago quarter and surpassed the Zacks Consensus Estimate
of 55 cents, primarily driven by increased sales and improved
Net sales in the quarter increased 9% to $766.9 million from
the year-ago quarter and also came ahead of the Zacks Consensus
Estimate of $744.0 million. The hike was driven by higher volumes
and better product mix.
Bolstered by strong quarterly performance, the company raised
its fiscal 2013 adjusted earnings guidance to a range of
$2.10-$2.20 per share, up from the earlier projection of
$2.00-$2.10. The current Zacks Consensus Estimate stands at $2.18
per share, which is closer to the company's higher-end guidance
Further, we believe that Constellation Brands' continued focus
on brand building and enhancing market share through acquisitions
are accelerating its growth opportunities. During calendar year
2012, Constellation Brands acquired the remaining 50% stake in
Crown and the Calif.-based Mark West wine brand.
Another beverage-alcohol company that created a new 52-week
high recently was
Companhia de Bebidas Das Americas
, or AmBev (
). Besides this, other stocks in the retail space soared to
all-time highs in recent weeks are
The Clorox Company
AMBEV-PR ADR (ABV): Free Stock Analysis
COLGATE PALMOLI (CL): Free Stock Analysis
CLOROX CO (CLX): Free Stock Analysis Report
CONSTELLATN BRD (STZ): Free Stock Analysis
To read this article on Zacks.com click here.