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Constellation Brands, Inc. (NYSE: STZ) Has A Major Tailwind in Millennials

According to a recent article published by the Fortune magazine, millennials are the leading consumers of wine products, which means that companies such as Constellation Brands, Inc. (NYSE: STZ) are likely to benefit from this growing trend. The study also indicates that millennials are spending more on their wine purchases as compared to other age groups as they outspend baby boomers and generation Xers by a wide margin.

The rising popularity of wines among millennials has led to a decline in demand for beers across the United States although beers still account for the largest portion of alcoholic products sold in the country. However, demand for wines and spirits has been growing significantly and currently accounts for more than 50% of all alcoholic beverages sold and this trend is likely to continue.

Review Our STZ Trading Plans Here.

Our combined analysis of the company indicates that its revenues have grown significantly since Q3 2013 and have been on an uptrend since then up to now. The company’s stock price has also been rising since Q3 2012, which is evidence of the company’s sustained positive performance.

The company has a stable of over 100 brands that it sells in the three alcoholic beverage segments including premium wine brands such as Kim Crawford, Ruffino and Robert Mondavi. Although the company registered declining quarterly growth rates in Q3 and Q4 2017, this is likely to change in the near future.

The company has operations in the following countries: the U.S., Canada, Mexico, Italy and New Zealand. The company is also well-positioned to capitalize on the growing demand for pot products in areas where the industry is legal given that it bought a 9.9% stake in Canopy Growth Corporation, which is a major player in the Canadian pot industry.

The company’s annual growth rate is expected to decline next year given that the company posted a slight decline in Q4 2017. However, it is highly likely that Constellation brands might surprise most analysts by generating significant growth in the coming years driven by demand from millennial consumers.

Based on the technical data and associated charts at the time this article was written, Stock Traders Daily has provided detailed trading plans, with integrated risk controls, to its clients. These plans will change in real time as prices move. To receive an update or to review the detailed trading plans associated with this data please review our Real Time Trading Report for STZ.

Technical Summary

Term →Near Mid Long
Rating Strong Neutral Neutral
P1 224.72 205.15 213.69
P2 229.06 217.38 226.41
P3 232.71 228.25 238.74
Triggers may have already come
Support and Resistance Plot Chart for STZ

Long Term Trading Plans for STZ

March 14, 2018, 8:41 am ET

The technical Summary and associated Trading Plans for STZ listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for STZ. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

STZ - (Long) Support Plan

Buy over 226.41 target 238.74 stop loss @ 226.15.
The technical summary data tells us to buy STZ near 226.41 with an upside target of 238.74. This data also tells us to set a stop loss @ 226.15 to protect against excessive loss in case the stock begins to move against the trade. 226.41 is the first level of support below 227.94 , and by rule, any test of support is a buy signal. In this case, support 226.41 is being tested, a buy signal would exist.

STZ - (Short) Resistance Plan

Short under 238.74 target 226.41 stop loss @ 239
The technical summary data is suggesting a short of STZ as it gets near 238.74 with a downside target of 226.41. We should have a stop loss in place at 239 though. 238.74 is the first level of resistance above 227.94, and by rule, any test of resistance is a short signal. In this case, if resistance 238.74 is being tested, a short signal would exist.


STZ Long Term Analysis


STZ EPS Analysis

STZ Revenue chart

STZ Growth rate - Quarterly

STZ Growth rate - Yearly

Blue = Current Price
Red= Resistance
Green = Support

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