Constellation Brands (NYSE:STZ) is a producer of beer, wine, and spirits. The company is one of the largest multi-category alcoholic beverage suppliers in the United States. Constellation Brands made a big splash in 2018 when it poured a multi-billion-dollar additional investment into Canopy Growth Corp., signalling a vote of confidence in the fledgling cannabis market.
Shares of Constellation Brands plunged to a 52-week low of $150.37 in early January. This came after the company reported a 38.5% year-over-year decline in profit in the third quarter. Constellation Brands was forced to adjust its fiscal 2019 outlook. It now projects earnings per share between $9.20 and $9.30 for the full year.
Constellation Brands has bounced back nicely from its post-earnings dip. The stock was up 5.3% week-over-week as of close on January 31.
Shares are still down 20% year over year. Is the stock still a bargain as we kick off the month of February?
As of close on January 31 Constellation Brands had an RSI of 57. This puts the stock in neutral territory as of this writing. Shares were technically oversold in late December and slipped in and out of oversold territory immediately following its Q3 earnings release.
Constellation does not offer the value it did in late December and early January, but I still like the stock at its current price. The stock also offers a quarterly dividend of $0.74 per share which represents a modest 1.5% yield.
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