Constellation Brands Up on Positive Outlook

By: Jon "DRJ" Najarian

Reiterates 2010 Guidance

The alcoholic beverage company reiterated its fiscal 2010 outlook and expects GAAP diluted earnings per share in the range of $0.97 to $1.07 and non-GAAP diluted EPS of $1.60 to $1.70. That's positive guidance folks, so as I wrote Tuesday on InsideOptions, STZ looks ready to play catch-up with rival Diageo. STZ closed at $12.68 yesterday and is trading at $13.15 in the pre-market on our Heat Seeker system.

YUM Upgraded on Growth

Goldman Sachs upgraded shares of Yum Brands from "neutral" to "buy," citing U.S. growth and improved expectations in China for the second half of the year. GS then moved the target from $36 to $40. Take a look at the charts of MCD and YUM, and you see two very similar paths of strength and now consolidation in the fast-food chains. Yum closed yesterday at $33.34 but is trading at $34.60 Wednesday morning.

(Chart courtesy of tradeMONSTER)