(STZ) Constellation Brands - Ratings and Ratios

Constellation Brands, Inc. (NYSE: STZ) is a leading international producer and marketer of beer, wine, and spirits, operating across the United States, Canada, Mexico, New Zealand, and Italy. The companys beer portfolio includes prominent brands such as Corona Extra, Modelo Especial, and Pacifico, while its wine offerings feature names like Kim Crawford, Meiomi, and Robert Mondavi Winery. Spirits are marketed under brands including High West, SVEDKA, and Casa Noble. Products are distributed to wholesalers, retailers, and on-premise locations, as well as state alcohol agencies. Founded in 1945 and headquartered in Victor, New York, the company has established itself as a major player in the beverage alcohol industry, with a market capitalization of $33.55 billion USD.

From a technical perspective, STZ is currently trading at $186.63 with a 20-day average volume of 2.05 million shares. The stocks 20-day SMA is at 181.64, while its 50-day SMA is at 177.85. The 200-day SMA stands at 218.72, indicating the stock is below its long-term trendline. The Average True Range (ATR) is 6.01, reflecting moderate volatility. On a fundamental basis, the forward P/E ratio is 13.11, and the P/B ratio is 4.87, suggesting the stock is trading at a premium to its book value. The price-to-sales ratio is 3.29, and the return on equity is -1.14%, which may raise concerns about profitability.

3-month forecast: Based on the convergence of the 20-day and 50-day SMAs, STZ may experience a near-term bullish reversal if the 20-day SMA continues to rise above the 50-day SMA. However, the stocks position below the 200-day SMA indicates a broader downtrend. Expect volatility to remain moderate, with potential resistance at the 200-day SMA level of 218.72. Support levels may emerge near the 50-day SMA at 177.85. The stock is likely to remain range-bound between these levels unless driven by unforeseen catalysts. The forward P/E of 13.11 suggests expectations of future earnings growth, but the negative RoE may weigh on investor sentiment.