Margin Breakdown
0.0558
Operating Profit Margin
0.0177
Net Profit Margin
0.0285
Pretax Profit Margin
| Pretax Profit Margin | 0.0285 | |
| Operating Profit Margin | 0.0558 | |
| Net Profit Margin | 0.0177 | |
| Gross Profit Margin | 0.3 |
Should you shadow Constellation Brands (USA Stocks:STZ) insiders in February?
 | By Rifka Kats | Macroaxis Story |
More than 76% of Constellation Brands shares are held by institutional investors. These include mutual funds, pension funds, insurance companies, and large investment firms that manage assets on behalf of others. This high level of institutional ownership suggests that big players have confidence in the company's prospects. For a deeper look, check out our latest analysis of Constellation, including detailed ownership breakdowns and insights.
Key Takeaways
Constellation Brands (STZ) continues to hold its ground with a 52 Week High of $202.76, even as the broader market pulls back, suggesting resilience in its stock performance. With an EPS Estimate Next Year of $12.39 and a PE ratio of 20.45, the company appears positioned for steady growth, making it an intriguing option for investors seeking stability amid volatility.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Raphi Shpitalnik
A rising tide lifts all boats, but even in choppy waters, some vessels manage to stay afloat. Constellation Brands (STZ), a key player in the beverages sector, has been holding steady amid recent market pullbacks. Despite facing a dip from its 52-week high of around 203, the stock remains resilient, trading near its day median price of approximately 143. With an EPS estimate of about 11.48 for the current year and a Wall Street target price close to 169, analysts generally see solid growth potential. The stock’s valuation suggests it’s fairly valued at around 144, with a market cap of roughly $24 billion. While some caution is warranted given a short ratio of 3.98 and a modest short percent of 5.83%, the overall consensus remains a buy, supported by nine strong buy ratings. As the company continues to navigate market fluctuations, its steady gains hint at underlying strength that could make it an interesting consideration for investors seeking stability in uncertain times. Currently, Constellation Brands’ P/FCF ratio remains steady compared to the past year. Analysts expect its return on equity (ROE) to climb to around 8% by 2026, while the market capitalization may dip slightly above $411 million. The main focus here is to evaluate Constellation’s prospects for February. We’ll look into whether the stock is fairly valued as that month approaches, helping investors decide if now is a good time to consider a position.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Constellation Brands. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Constellation Brands
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Constellation Brands' 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.
How important is Constellation Brands's Liquidity
Constellation Brands financial leverage refers to using borrowed capital as a funding source to finance Constellation Brands Class ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Constellation Brands financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Constellation Brands' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Constellation Brands' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Constellation Brands's total debt and its cash.
Constellation Brands Gross Profit
Constellation Brands Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Constellation Brands previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Constellation Brands Gross Profit growth over the last 10 years. Please check Constellation Brands' gross profit and other fundamental indicators for more details.
Detailed Perspective On Constellation Brands
The current indifference towards the small price fluctuations of Constellation Brands created some momentum for investors as it was traded today as low as 141.04 and as high as 144.26 per share. The company directors and management did not add any value to Constellation Brands investors in December. However, most investors can still diversify their portfolios with Constellation Brands to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.54.The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
As Warren Buffett once said, risk comes from not knowing what you're doing, and Constellation Brands (STZ) seems to be navigating market turbulence with steady confidence. Despite recent market pullbacks, the company's stock price has remained resilient, with a typical day price around $142.98 and a 50-day moving average of $136.33. The firm’s valuation stands at approximately $34.97 billion, supported by a solid current ratio of 1.40X and an EPS estimate for this year of 11.48, with next year's forecast rising to 12.39. While the stock's upside potential is modest at around 2.6%, its strong institutional ownership at 76.39% and a relatively low short ratio of 3.98X suggest investor confidence persists amid broader market uncertainties..
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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 Rifka Kats do not own shares of Constellation Brands Class. Please refer to our Terms of Use for any information regarding our disclosure principles.