With shares of Constellation Brands (NYSE:STZ) trading around $59, is STZ an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
Constellation Brands produces and markets beverage alcohol. The company sells wine across various categories, including table wine, sparkling wine, and dessert wine; and spirits under the Robert Mondavi Brands, Clos du Bois, Estancia, Black Box, Arbor Mist, Blackstone, Rex Goliath, Simi, Toasted Head, Mark West, Ravenswood, Franciscan Estate, Ruffino, Wild Horse, Kim Crawford, Mount Veeder, Nobilo, Inniskillin, Jackson-Triggs, SVEDKA Vodka, Black Velvet Canadian Whisky, and Paul Masson Grande Amber Brandy brand names.
It also produces and markets wine kits and beverage alcohol refreshment drinks; and bulk wine and other related products, as well as provides related services. In addition, Constellation Brands imports, markets, and sells the Modelo Brands beer. Its products are primarily sold to wholesale distributors, importers, retailers, on-premise locations, and government alcohol beverage control agencies in the United States, Canada, the United Kingdom, Australia, and internationally.
On Thursday morning, Constellation Brands reported earnings and revenue figures that surpassed analyst expectations. A revaluation of its original 50 percent stake in Crown Imports and a completed acquisition of the remaining portion offered a significant boost to earnings. “As previously discussed, we expect most of our growth for the wine and spirits business to be generated during the second half of the year resulting from the timing of product shipments,” stated the President and CEO, Robert S. Sands.