Constellation Brands Rated High by Multi-Factor Investor Model

A recent report indicates that Constellation Brands Inc. (STZ) ranks 62% under the Multi-Factor Investor model based on strong momentum and low volatility. However, a final rank of 'Fail' raises questions about its investment appeal.

Date: 20-12-2024

AI Rating: 5

The report highlights Constellation Brands Inc. (STZ) as a large-cap growth stock within the Beverages (Alcoholic) industry. The stock has received a score of 62% based on its underlying fundamentals and valuation when evaluated by the Multi-Factor Investor model. This scoring indicates that while the stock has some positive attributes, it is short of the typical strong interest threshold, which is 80% or above.

According to the model, STZ has passed crucial tests such as MARKET CAP and STANDARD DEVIATION, implying stability and low volatility. However, it has been marked as NEUTRAL for TWELVE MINUS ONE MOMENTUM and NET PAYOUT YIELD, indicating that while these factors are satisfactory, they do not particularly enhance its attractiveness as an investment.

Crucially, the stock received a 'FAIL' rating for its FINAL RANK. This suggests significant underlying concerns or weaknesses, negatively impacting its investment appeal. Investors typically look for high ratings in this context, and a 'FAIL' could lead to diminished investor confidence or a re-evaluation of the stock's potential for growth.

Stocks: STZ