Morgan Stanley maintains Constellation Brands Inc. [STZ] at an Overweight rating with a $240 price target

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MRAI Stock

Morgan Stanley maintained its Constellation Brands Inc. [NYSE:STZ]‎ rating to the equivalent of ‎Overweight but changed the price target ‎to $240, in a research note dated December 31, 2020. That ‎figure represents around a 9.98% ‎premium ‎from where the company’s shares closed on Wednesday.‎ ‎Some new ‎analysts also started their coverage, with Wells Fargo’s analysts assigning the shares to ‎‎”an ‎Overweight” rating in a research note to investors issued in early December. Meanwhile, ‎Morgan ‎Stanley had raised its rating on STZ to “an Overweight” from the earlier “an Equal-weight”, in ‎a ‎research note produced for clients November 03, 2020. In addition, there was a downgrade ‎from ‎Atlantic Equities on October 14, 2020. The rater changed STZ from “an Overweight” to “a ‎Neutral”.

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Is Constellation Brands Inc. ‎‎[NYSE:STZ] a Good Buy Right Now?

It should be noted that STZ ‎technical indicators for short, ‎intermediate as well as long term progress have placed an overall ‎average of 100% as Buy. The average ‎signal changed from 100% Buy in the last week and compares ‎with 100% Buy in the past month. Data ‎from Constellation Brands Inc.’s Trend Spotter indicated that ‎the signals were Weakest. The stock ‎current average is 0.98 million shares in the past 20 days and the ‎short term average signal indicates a ‎‎100% Buy. In the last 50 days, the average trading volume was ‎‎1.07 million shares while the medium ‎term average advocated for 100% Buy. The average long-term ‎signal stands at 100% Buy and the 100-‎day average volume stands at 1.04 million shares.‎‎

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STZ Price Performance

On Wall Street, ‎Constellation Brands Inc. [NYSE:STZ] finished ‎Wednesday’s session up 0.35% at $218.21. The stock ‎went up to $219.78 at the same session while its ‎lowest single day price was $217.01. In the last five ‎days, it saw a rise of about 2.47%, Constellation ‎Brands Inc. shares gained by almost 15.00% since the ‎beginning of the year. However, the share price ‎has dropped to as low as -0.81% below its one year ‎high. On 12/29/20, the company shares recorded ‎‎$220.00, the highest single-day price it has got to in ‎the last 52-weeks and a 52-week low was seen on ‎‎03/23/20, the same year at $104.28. The company’s ‎shares have inclined by 15.00% in the past year. ‎The 50-day SMA achieved is $199.49 while the 200-day ‎SMA is $179.12. Volume dropped to 0.43 million ‎from 0.69 million in the previous session.‎‎‎

Constellation Brands Inc. [STZ] Valuation Measures

Notably, Constellation Brands Inc. ‎‎[STZ] ‎stock cannot be classified as a good candidate in the listing of underestimated low-priced ‎Beverages – ‎Wineries & Distilleries companies to purchase soonest possible with the prevailing 12-‎month PE ratio ‎of 40.80. The measure means the stock is exchanging at a premium as compared to the ‎‎25.19x trailing ‎earnings of the industry. It can be helpful for investors to consider historical price-sales ‎ratio, more ‎specifically, a 5.16 PS value ratio is reported for the last one year of reported earnings. That ‎is higher ‎than the industry average of 1.98 which means STZ serve an unattractive investment ‎opportunity ‎compared to its competitors.‎‎

STZ Stock Support And Resistance Levels

On the ‎‎24-hour scale, the immediate backing is ‎perceived around 216.89 level, and in case of violation of this ‎particular level, it will cause more drop to ‎‎215.56 level. On the upper level, 221.10 is still the key ‎resistance. The stock may increase to the ‎subsequent resistance at 219.66. The Relative Strength Index ‎‎(RSI) pinned on the 14-day chart is 63.50, ‎implying a neutral technical stance while the MACD stands at ‎‎4.09, meaning price will increase in the ‎next trading period. Percent R indicator moved to 11.52%, ‎implying bullish price movement. Stochastic ‎‎%K at 88.19% suggest selling the stock.‎‎

What is the ‎short interest in Constellation Brands Inc.?

Short interest in the Constellation ‎Brands Inc. stock ‎has surged, increasing by 1.67 million shares to total 3.85 million shares on Dec 14, ‎‎2020. The interest ‎had seen shares on Nov 12, 2020 stand at 5.52 million, data from Yahoo Finance ‎shows. The decrease ‎of -43.38% suggests the stock saw some decreased bullish sentiment. The stock’s ‎days to cover (short ‎ratio) moved to while the shorted shares account for just 2.37% of the overall ‎float for the stock.‎‎‎

Constellation Brands Inc.’s Biggest Shareholders: Who Owns Constellation Brands ‎Inc. ‎‎[STZ]?

Filings by Capital Research & Management Co showed that the firm now holds a total ‎of ‎‎12,242,989 shares or roughly 7.22% of the outstanding STZ shares. This means their shares ‎have ‎reduced by -554,728 from the 12,242,989 the investor reportedly held in its prior 13-F filing. With ‎the ‎conclusion of the sale, The Vanguard Group, Inc. updated stake is worth $2,422,825,723. Details in ‎the ‎latest 13F filings reveal that SSgA Funds Management, Inc. disposed off their -1.75% stake valued ‎at ‎‎$1,526,445,630 while BlackRock Fund Advisors cut theirs at $1,388,649,747. During the last ‎quarter, ‎SSgA Funds Management, Inc. liquidated -132,279 of its shares in Constellation Brands Inc. ‎while ‎BlackRock Fund Advisors sold -156,365 shares. The Wellington Management Co. LLP’s ‎holdings ‎currently number 5,670,710 shares at $1237405629.1. According to the firm’s last 13F report, ‎JPMorgan ‎Investment Management, I shares in the company at filing stood at 4,637,118 shares, ‎roughly ‎‎$954,504,369.‎‎

STZ Earnings Forecast For The Current Quarter

Constellation Brands ‎Inc. [STZ] is expected to ‎report strong earnings results for the quarter ending on Nov 2020. Consensus ‎estimates give the ‎company expected revenues of $2.23B and an earnings per share of $2.39 for Nov ‎‎2020. Looking ‎further ahead, the company is expected to report revenue of $1.98B at an EPS of $2 for ‎Feb 2021. ‎‎

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STZ Earnings Estimates For The ‎Current ‎Year

For the financial year, Constellation Brands Inc. [NYSE:STZ] is expected to bring in ‎revenue ‎of $8.38B. The returns are nearly $40.0 million higher than the company’s actual revenue ‎recorded in ‎the fiscal year 2020. In terms of EPS for the 2021, estimate put it at 9.42, higher than that of ‎FY20 by ‎‎$0.3. Estimates put this year’s earnings growth at 3.30%, 8.10% for the next, and at an annual ‎‎8.80% ‎over the next 5-year period. As for sales, forecasts are for an increase of 0.40% in the current ‎fiscal ‎year and a further 0.10% over the following year.‎


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