Rochester, New York-based Constellation Brands, Inc. (STZ) is a leading producer and marketer of premium alcoholic beverages, best known for its portfolio of high-end beer, wine, and spirits. Valued at a market cap of $22.8 billion, the company holds exclusive U.S. rights to top beer brands such as Corona, Modelo, and Pacifico.
Shares of this alcoholic beverages producer have significantly lagged behind the broader market over the past 52 weeks. STZ has declined 46% over this time frame, while the broader S&P 500 Index ($SPX) has gained 12.3%. Moreover, on a YTD basis, the stock is down 41.3%, compared to SPX’s 12.5% uptick.
Narrowing the focus, STZ has also underperformed the First Trust Nasdaq Food & Beverage ETF’s (FTXG) 10% downtick over the past 52 weeks and 7.2% YTD drop
On Oct. 6, STZ reported better-than-expected Q2 results. The company’s net sales declined 15% year-over-year to $2.5 billion, but topped analyst expectations by a small margin. Moreover, its adjusted EPS of $3.63 also fell 16% from the year-ago quarter, but exceeded consensus estimates of $3.37. However, its shares fell 2.5% that day mainly due to a notable decline in both of its key metrics.
For the current fiscal year, ending in February 2026, analysts expect STZ’s EPS to decline 16.6% year over year to $11.50. The company’s earnings surprise history is mixed. It topped the consensus estimates in two of the last four quarters, while missing on two other occasions.
Among the 24 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on 10 “Strong Buy,” three "Moderate Buy,” nine "Hold,” one “Moderate Sell,” and one “Strong Sell” rating.
This configuration is slightly more bullish than a month ago, with two analysts suggesting a “Strong Sell” rating.
On Nov. 7, Macquarie analyst Drew Levine resumed coverage with a “Hold” rating on STZ and set a price target of $153, indicating a 17.2% potential upside from the current levels.
The mean price target of $169.91 represents a 30.1% premium from STZ’s current price levels, while the Street-high price target of $215 suggests an ambitious 64.6% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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