With first quarter earnings on tap the morning of June 30, alcoholic beverage giant Constellation Brands is currently about 10% below a 261.62 buy point. The current formation is a first-stage flat base, a bullish indicator because research shows that early stage bases are more likely to succeed than third or fourth stage ones.
Constellation Brands stock has a 91 Relative Strength Rating, placing it in the top 9% of all stocks for price performance this past year. It also has a 91 Accumulation/Distribution Rating, of 99, indicating strong buying by institutional investors like mutual funds and ETFs. Its 81 EPS Rating, although strong, is less than ideal. However, its profit growth picked up recently so look for that number to improve.
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Constellation Brands Profit Growth Jumped
New York-based Constellation Brands is the parent of Corona, Modelo and Chelada beers, Robert Mondavi and various other wines, and Casa Noble tequila and other spirits.
In terms of fundamentals, top and bottom line growth moved higher in the company's most recent quarter. Earnings were up 30% to $2.37 per share, compared to 1% growth in the prior report. Constellation Brands revenue rose 8% year over year in its most recent quarter to $2.1 billion. Analysts expect EPS growth of 9% for Q1, and a 9% gain for the full year.
Constellation Brands has a 91 Composite Rating and holds the No. 8 rank among its peers in the Beverages-Alcoholic industry group. Brown Forman, MGP Ingredients and Molson Coors are among the top 5 highly rated stocks within the group.
It's risky to buy any stock just before it reports. Investors can reduce exposure by waiting to see how the company reports and how the market reacts. Using an options strategy during earnings season is another way to get in a position to profit while minimizing the potential downside.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
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