Markets
AAN

Constellation Brands (STZ) On a Roll, Hits 52-Week High

A generic image of a person with a pen and calculator
Credit: Shutterstock photo

Constellation BrandsSTZ is firing on all cylinders to make its way into the investors' kitty. The company's shares have surged over 41% year to date, backed by its solid brand portfolio, strategic growth initiatives, impressive earnings trend and robust financials.

Moreover, this Zacks Rank #2 (Buy) company hit a 52-week high of $137.67 in the last trading session, eventually closing at $136.89.

Keeping its earnings beat trend alive for the fourth straight quarter, Constellation Brands recently posted stellar second-quarter fiscal 2016 results wherein the company's top and bottom lines exceeded estimates and improved year over year. Results were backed by continued strength in the company's beer business, improving trends at its wine and spirits business, and solid overall depletion trends.

The impressive results also encouraged management to raise its outlook for the fiscal year, following which the Zacks Consensus Estimate for fiscal 2016 is trending upwards. The consensus estimate has climbed 2.6% to $5.14 per share, over the past 7 days, which reflects the fact that analysts have become more constructive on the stock's performance.

Constellation Brands occupies a predominant position in the premium wine and beer segment in the U.S. In fact, the company generated nearly 45% of the total volume growth in the overall U.S. beer industry that marked its beer portfolio's twenty-second straight quarter of gains in market share volume.

Taking a look at the fundamentals, the company's consistent focus on brand building and its initiatives to include new products in its wine and spirits business are the major revenue drivers for the stock. Moreover, Constellation Brands has been undertaking meaningful acquisitions and joint ventures, which appear promising and beneficial for its business.

We believe that all these factors have been key drivers for the company and are likely to keep investors in good spirits.

Apart from Constellation Brands, Aaron's, Inc. AAN , Tyson Foods, Inc. TSN and Dr Pepper Snapple Group, Inc. DPS , also hit 52-week highs of $40.80, $46.78 and $84.18, respectively, on Oct 9, 2015.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

AARONS INC (AAN): Free Stock Analysis Report

DR PEPPER SNAPL (DPS): Free Stock Analysis Report

TYSON FOODS A (TSN): Free Stock Analysis Report

CONSTELLATN BRD (STZ): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AAN TSN STZ

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More