Constellation Attains All-Time High - Analyst Blog
2013年2月26日 - 7:40PM
Zacks
Shares of Constellation Brands Inc. (STZ)
soared to a new 52-week high of $44.99 on Monday, Feb 25, as the
company continues to gain from the 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 4,456,360.
This Zacks Rank #2 (Buy) beverage company closed trade at $43.97 on
Feb 25, representing a solid year-to-date return of approximately
17.0%, while gaining about 103.0% over the past year.
Drivers That Triggered Momentum
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
margins.
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. Net sales were gained on the back of
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 to $2.20
per share, up from the earlier projection of $2.00 to $2.10.
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 California-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 (ABV). Besides this, other stocks in the retail space
soaring to their all time highs are The Clorox
Company (CLX) and Colgate-Palmolive Co.
(CL).
Stock’s Key Indicators
From the valuation perspective, Constellation Brands looks
compelling. The stock currently trades at a forward P/E of 20.2x,
at par with the peer group average. Similarly, both price-to-book
and price-to-sales ratios stand at 2.9, in line with the peer group
average.
Moreover, the company’s return-on-equity (ROE) and return-on-asset
(ROA) are 17.9% and 6.1%, respectively, which are higher than the
peer group averages. The company’s strong fundamentals are well
supported by its long-term estimated EPS growth rate of 10.9%.
AMBEV-PR ADR (ABV): Free Stock Analysis Report
COLGATE PALMOLI (CL): Free Stock Analysis Report
CLOROX CO (CLX): Free Stock Analysis Report
CONSTELLATN BRD (STZ): Free Stock Analysis Report
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Constellation Brands (NYSE:STZ)
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Constellation Brands (NYSE:STZ)
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