Shares of alcoholic beverage provider Constellation Brands (NYSE:STZ) fell/gained in today’s trading as investors await its Q1 earnings results on July 3 before the market opens. Analysts are expecting earnings per share to come in at $3.46 on revenue of $2.672 billion. This equates to 18.9% and 6.3% year-over-year increases, respectively, according to TipRanks’ data.
This is ideal since earnings per share should grow faster than revenue as it demonstrates a high degree of operating and financial leverage in the business. In addition, it’s worth noting that Constellation Brands has beaten earnings estimates in seven of its past eight quarters, as per the image below.
What Do Options Traders Expect?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a 3.81% move in either direction.
Is STZ Stock a Buy or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on STZ stock based on 16 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 5.2% rally in its share price over the past year, the average STZ price target of $298.11 per share implies 16.49% upside potential.
