Constellation Story

STZ -- USA Stock

USD 226.15 2.00 0.89%

Macroaxis Story

Constellation Brands is scheduled to announce its earnings today. The next earnings report is expected on the 7th of July 2021. As some millenniums are still trying to avoid consumer defensive space, I will try to break down Constellation Brands a little further in order to understand its potential as a viable investment. We will evaluate why we are still optimistic in anticipation of a recovery.

Published 3 days ago

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Would you shadow Constellation Brands analysts?

The firm shows a Beta (market volatility) of 0.1376, which signifies not very significant fluctuations relative to the market. Let's try to break down what Constellation's beta means in this case. As returns on the market increase, Constellation Brands returns are expected to increase less than the market. However, during the bear market, the loss on holding Constellation Brands will be expected to be smaller as well. Even though it is essential to pay attention to Constellation Brands historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Constellation Brands exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Constellation Brands has an expected return of -0.0275%. Please be advised to confirm Constellation Brands expected short fall, day median price, and the relationship between the potential upside and accumulation distribution to decide if Constellation Brands stock performance from the past will be repeated at some point in the near future.

What is the right price you would pay to acquire a share of Constellation Brands? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.

Please read more on our stock advisor page.

What is happening with Constellation Brands this year

Annual and quarterly reports issued by Constellation Brands are formal financial statements that are published yearly and quarterly and sent to Constellation stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.

Companies such as Constellation Brands often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Constellation utilizes its cash?

To perform a cash flow analysis of Constellation Brands, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Constellation Brands is receiving and how much cash it distributes out in a given period. The Constellation Brands cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Constellation Brands Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Constellation Brands reported Net Cash Flow from Operations of 2.3 Billion in 2020

Acquisition by Mallika Monteiro of 2689 shares of Constellation Brands subject to Rule 16b-3

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 grant of restricted stock units by Mallika Monteiro, EVP Chief Growth&Strategy Off, on 23rd of February 2021. This event was filed by Constellation Brands Inc with SEC on 2021-02-23. Statement of changes in beneficial ownership - SEC Form 4. Mallika Monteiro currently serves as executive vice president and chief growth, strategy and digital officer 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.

Detailed Perspective On Constellation Brands

Earning per share calculations of the firm is based on official Zacks consensus of 5 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 9.705 with the lowest and highest values of 9.51 and 9.99, 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.

Is Constellation a risky opportunity?

Let's check the volatility. Constellation is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Constellation (NYSE:STZ) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Constellation Brands stock makes you a part-owner of that company.

Constellation Brands Current Consensus

Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering Constellation Brands. The Constellation consensus assessment is calculated by taking the average estimates from all of the analysts covering Constellation Brands

Strong Buy

Buy

Hold

Strong Buy	7	50.0
Buy	1	7.14
Hold	6	42.86
Sell	0	0.0
Strong Sell	0	0.0

Time to sell of Constellation Brands?

Current Risk Adjusted Performance is up to 0.07. Price may slide again. Constellation Brands has relatively low volatility with skewness of -0.1 and kurtosis of -0.59. 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. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Constellation Brands' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Constellation Brands' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Perspective on Constellation Brands

While many of the other players in the beverages?wineries & distilleries industry are either recovering or due for a correction, Constellation Brands may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the current economy, it is better to hold off any trading of Constellation as the current risk-reward utility is not appealing enough. 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

Ellen Johnson is a Member of Macroaxs Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

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 Ellen Johnson 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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