• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Investing Will Constellation Brands’ sell off continue as CEO insists it is undervalued?
Investing

Will Constellation Brands’ sell off continue as CEO insists it is undervalued?

by January 6, 2023
by January 6, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Constellation Brands, Inc (NYSE:STZ) has been a very defensive name despite the stock market woes. The stock traded above $260 on December 02, 2022, its highest price ever, also hit in April of the same year. But as 2023 approached, the stock was under the control of the bears. The stock has now lost 15% in a month and trades at $210. Its CEO Bill Newlands believes the stock is a bargain at the current price, and the company would be “silly” not buying back.

In case you might be interested, Constellation Brands is America’s largest bear import company by sales. It also ranks third in market share among the major beer suppliers. Investors have always held this stock which has been regarded as very defensive during tough times. Zacks Research assigns a PEG ratio of 1.77, less than the Beverages – Alcohol industry ratio of 1.94. That means that investors may view the stock as relatively undervalued compared to the industry.

Reflecting on the recent selloff, Newlands says the stock selloff is an “over reaction” to the company’s reported earnings. That was after the company generated an adjusted EPS of $2.83 in its latest quarter, below estimates of $2.89. The EPS was also lower than $3.12 last year. Still, Constellation grew net sales by 5% to $2.44 billion or £2.05 billion. The sales topped $2.38 billion or £2 billion estimates. We believe this stock is attractive, but a key level must hold to buy now; otherwise wait.

Constellation retraces to support

STZ Chart by TradingView

From the weekly chart, Constellation stock trades at a support zone of $210. The stock lost a key ascending trendline. However, at the current price, the stock could gain stability. The stock has held to this key level for 2021 and 2022 and could be a target for buyers.

Constellation stock final thoughts

$210 is the level to watch to buy STZ. If this level holds, followed by a bullish signal, you should consider investing in the defensive stock.

The post <strong>Will Constellation Brands’ sell off continue as CEO insists it is undervalued?</strong> appeared first on Invezz.

You Might Also Like
  • Microsoft to buy 4% of London Stock Exchange Group
  • Circle cancels plans to go public amid return to profitability
  • Chevron will still be drilling in 2050: CEO Mike Wirth
  • What Are Cash-Settled Options?
Share
0
FacebookTwitterPinterestWhatsapp

previous post
WWE stock jumped 20% on Friday: find out more
next post
3 reasons why the December NFP report matters for markets

You may also like

Is Vodafone Idea stock a good contrarian buy as it...

January 12, 2023

Is it safe to buy Tesla stocks after Elon Musk’s...

December 16, 2022

Deere & Co. shares surge after quarter results. Should you...

November 24, 2022

Is Micron stock a ‘buy’ despite weak guidance?

December 22, 2022

The Fed’s 50-bps hike faces off against the “compressed lag...

December 15, 2022

3 reasons why the December NFP report matters for markets

January 7, 2023

Elon Musk: here’s why Tesla stock continues to sell-off

December 21, 2022

3 investments David Einhorn believe will pay off big in...

November 23, 2022

Cathie Wood’s ARK buys 74,792 more Coinbase shares

January 12, 2023

2022 Inflation statistics: how bad is it worldwide?

December 2, 2022

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Week Ahead: NIFTY Stays In A Defined Range; Moving Past This Level Crucial For Resumption Of Upmove

      May 31, 2025
    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,309 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,582)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Week Ahead: NIFTY Stays In A Defined Range; Moving Past...

      May 31, 2025
    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,582)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    What Happened to SFOMag? Stocks, Options...

    March 12, 2023

    Southwest Airlines is doing significantly worse...

    December 27, 2022

    Bruce Kovner’s 4 trading principles that...

    November 29, 2022
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here