Is Constellation Brands (STZ) Mirroring Wall Street Downturn?

We recently published a list of 10 Companies Mirror Wall Street Downturn. In this article, we are going to take a look at where Constellation Brands, Inc. (NYSE:STZ) stands against other companies mirroring Wall Street downturn.

Wall Street’s main indices finished the shortened trading week in the negative territory, dampened by labor market data that came in much hotter than expected. The news fueled concerns that the Federal Reserve will not slash interest rates again.

Both the Dow Jones and the Nasdaq Composite dived by 1.63 percent on Friday, while the S&P 500 declined by 1.54 percent.

Ten companies mirrored a wider market downturn amid a series of catalysts that dampened investing appetite. This article explores the reasons behind their decline.

In Friday’s biggest losers, we only considered the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A winemaker examining a glass of red wine from a barrel in a cellar.

Constellation Brands, Inc. (NYSE:STZ)

Shares of Constellation Brands, Inc. (NYSE:STZ) nosedived by 17.13 percent on Friday to finish at $181.81 each after missing net sales estimates, booking only $2.46 billion versus the projected $2.53 billion.

Investor sentiment was further weighed by the company’s slashing of its annual sales and profit forecasts.

Constellation Brands, Inc. (NYSE:STZ) now expects annual net sales to settle between 2-5 percent from the 4-6 percent projected earlier.

“Given near-term uncertainty on when consumers will revert to more normalized spending, we have prudently lowered our growth outlook,” said Constellation Brands CEO Bill Newlands in a statement.

Commenting on the performance, Truist Securities analyst Bill Chappell said that without any catalysts on the horizon, investors “should remain on the sidelines until the story becomes interesting again.”

Overall, STZ ranks 1st on our list of companies mirroring Wall Street downturn. While we acknowledge the potential of STZ as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than STZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.