Constellation Story

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STZ -- USA Stock  

USD 219.85  2.32  1.04%

As many of us are excited about consumer defensive space, it is fair to break down Constellation Brands within current market trends. As expected, Constellation Brands is starting to reaffirm its true potential as investors are becoming more and more confident in the future outlook. A lot of the movements of the company stock price movements has been a reflection of what is happening in the market overall. Strong basic indicators of the company may also suggest signals of long term gains for Constellation investors. Constellation Brands is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 7th of January 2021.
Published over two weeks ago
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Will Constellation Brands (NYSE:STZ) price continue to rise in February?
Constellation Brands's average rating is Buy from 15 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Constellation Brands market sentiment investors' perception of the future value of Constellation. Let us look at a few aspects of Constellation technical analysis. Earning per share calculations of the firm is based on official Zacks consensus of 6 analysts regarding Constellation Brands' future annual earnings. Given the historical accuracy of 92.26%, the future earnings per share of the company is estimated to be 9.4383 with the lowest and highest values of 9.01 and 9.74, respectively. Please note that this consensus of annual earnings estimates for Constellation Brands is an estimate of EPS before non-recurring items and including employee stock options expenses.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Constellation Brands. In general, we focus on analyzing Constellation Brands stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Constellation Brands's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Constellation Brands's intrinsic value. In addition to deriving basic predictive indicators for Constellation Brands, we also check how macroeconomic factors affect Constellation Brands price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Constellation Brands' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Constellation Brands in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Constellation Brands. Your research has to be compared to or analyzed against Constellation Brands' peers to derive any actionable benefits. When done correctly, Constellation Brands' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Constellation Brands.

How does Constellation Stands against Peers?

Analyzing Constellation Brands competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Constellation Brands across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Constellation Brands Competition Details

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Constellation Brands, but it might be worth checking our own buy vs. sell analysis

Conversion by Robert Hanson of 6101 shares of Constellation Brands

Legal trades by Constellation Brands insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Constellation insider trading alert for conversion of class 1 (convertible) common stock by Robert Hanson, EVP & Pres. Wine and Spirits, on 12th of January 2021. This event was filed by Constellation Brands Inc with SEC on 2021-01-12. Statement of changes in beneficial ownership - SEC Form 4. Robert Hanson currently serves as executive vice president and president, wine and spirits division of Constellation Brands [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Closer look at Constellation Brands Standard Deviation

Constellation Brands has current Standard Deviation of 2.01. The Standard Deviation is a measure of how spread out the prices or returns of an asset are on average. It is the most widely used risk indicator in the field of investing and finance. Standard Deviation is commonly used to measure confidence in statistical conclusions regarding certain equity instruments or portfolios of equities.

Standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected market volatility. A large standard deviation usually indicates that the data points are far from the mean and a small standard deviation indicates that they are clustered closely around the mean.

Standard Deviation 
SQRT = Square root notation
V =   Variance of Constellation Brands returns
Let's now compare Constellation Brands Standard Deviation to its closest peers:

Constellation Brands implied volatility may change after the rise

Downside variance is down to 2.42. It may suggest a possible volatility slide. Constellation Brands has relatively low volatility with skewness of 1.38 and kurtosis of 4.06. However, we advise all investors to independently investigate Constellation Brands to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

The Bottom Line

While many other companies within the beverages?wineries & distilleries industry are still a little expensive, even after the recent corrections, Constellation Brands may offer a potential longer-term growth to investors. While some investors may not share our view we believe it may be a good time to sell Constellation as the risk-reward trade off is not appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Constellation Brands.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Constellation Brands. Please refer to our Terms of Use for any information regarding our disclosure principles.

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