3 Winners, 3 Losers Since the Shutdown

Booze is doing fine; homebuilders are starting to feel the pinch

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3 Winners, 3 Losers Since the Shutdown

Winner: Constellation Brands

constellationbrands185 3 Winners, 3 Losers Since the ShutdownReturn Since Shutdown: +7%

Constellation Brands (STZ) has been another sizzling stock since the shutdown began nearly a week ago — whether you believe it’s because furloughed workers have be drinking away their sorrows, or because the company posted stellar second-quarter results Oct. 3 is your call.

Narrowing in on the latter theory, though, Constellation’s newly acquired Crown Imports business helped STZ post doubled sales and a 35% year-over-year improvement in net income for Q2 — good enough for an easy earnings beat. That was the third time out of the past four quarters than the beverage giant beat expectations.

The strong results also caused Goldman Sachs analyst Judy Hong to reiterate her “buy” rating on STZ and raise the price target from $65 to $75. That translates to more than 20% upside for a stock that already has soared nearly 75% year-to-date.


Article printed from InvestorPlace Media, http://investorplace.com/2013/10/3-winners-3-losers-since-the-shutdown/.

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