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Constellation Brands

Is STZ a Buy or Sell based on AI Analysis?

Fundamental Analysis

Constellation Brands Inc (STZ) has a solid market value score of 37, indicating that the company is fairly valued in the market. With a market quality score of 59, Constellation Brands demonstrates strong quality indicators, such as a high gross margin of 50.45% and a healthy operating margin of 33.13%. Additionally, the company's return on assets of 7.87% and return on equity of 17.11% showcase its ability to generate profitable returns for shareholders. Constellation Brands' stable dividend yield of 1.42% and consistent annual dividends per share of $3.47 further highlight the company's commitment to rewarding investors. Furthermore, Constellation Brands Inc's low debt-to-equity ratio of 1.19 demonstrates the company's ability to efficiently manage its debt levels and maintain a healthy financial position. With a strong free cash flow margin of 18.21% and a price-to-cash flow ratio of 16.19, Constellation Brands is well-positioned to generate cash and fund future growth initiatives. The company's diverse product portfolio and strong industry growth score of 100 suggest potential for sustainable revenue growth in the Consumer Defensive sector. Overall, Constellation Brands' solid financial metrics and market performance make it a promising investment opportunity for investors seeking stable returns and long-term growth potential.

Positive Development

Constellation Brands Inc. Cl A stock outperforms market despite losses on the day, indicating a strong performance in the market. The company's announcement of the election of Christopher J. Baldwin as the new independent board chair, suggests a positive move towards the company's governance and strategic decision-making. The company's recent rise in the stock market, despite a fall in some days, shows that the company has strong market support and investor confidence.

Negative Development

The company's current ratio is only 1.0507, indicating a slight liquidity issue, which could be a concern for investors. The company's long-term debt to total asset ratio is 0.4103, which is relatively high, indicating that the company may be relying heavily on debt financing. The company's net debt to total capital ratio is 0.5489, which is also relatively high, suggesting that the company may have high levels of debt compared to its capital.

Technical Analysis

Based on the technical indicators provided for Constellation Brands Inc (STZ), it is evident that there is a mix of buy, hold, and sell signals. The technical buy indicator for the month is ATR (Average True Range), while the technical hold indicators include RSI, MACD, CCI, ADX, WILLR, and ROC. On the other hand, the technical sell indicator for the month is STOCHRSI. This suggests a cautious approach for investors, as the technical analysis points to a mixed sentiment in the market for STZ. Furthermore, the updated technical indicators as of March 4th show a neutral stance with one buy indicator, six hold indicators, and one sell indicator. The technical analysis also highlights that the stock sector for Constellation Brands Inc is Consumer Defensive, with a significant sector change of 28.64% in the past year. This information can be valuable for investors looking to understand the current market sentiment and technical outlook for STZ.

Conclusion and recommendation

Based on the data provided for Constellation Brands Inc, it is evident that the company is a stable and reliable investment option within the consumer defensive sector. With a strong market cap of $45.34B and a consistently positive revenue growth of 7.16%, Constellation Brands Inc has shown resilience in the market despite fluctuating economic conditions. The company's impressive return on equity of 17.11%, coupled with a moderate dividend yield of 1.42%, makes it an attractive choice for investors looking for steady returns. In conclusion, Constellation Brands Inc presents a solid investment opportunity for individuals seeking to diversify their portfolio in the consumer defensive sector. With a stable financial performance, a favorable dividend yield, and a prudent approach to managing debt, the company showcases strong fundamentals that position it well for long-term growth and profitability. Additionally, the company's analyst forecast price of $290.03 indicates potential for further appreciation in the stock value, making it a promising investment option for those looking to capitalize on the company's strong market position and consistent performance.

Data refers to:February 28, 2024
or to generate AI stock Analysis for Constellation Brands (Powered by our data and Chat GPT 4).
This AI-generated analysis is provided for informational purposes only and should not be considered as investment advice. The analysis is an experimental feature, and the information contained herein is derived from various sources and AI algorithms, which may not be entirely accurate or complete. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. The author and the platform providing this analysis assume no responsibility for any losses or damages resulting from the use of this analysis or the information contained within.
About AI-Powered Analysis
Powered by the advanced GPT-4 engine developed by OpenAI, a leading organization in artificial intelligence research, our AI-conducted stock analysis provides a comprehensive and actionable view of the stock market. This approach covers both technical and fundamental aspects, integrating relevant news developments, analysts' price targets, and predictions for upcoming trading periods into a clear and concise summary. This ensures a rounded perspective on a stock's performance and its potential, enhancing the understanding and the decision-making process for investors.
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