Looking at the universe of stocks we cover at Dividend Channel , in trading on Monday, shares of Constellation Brands Inc (Symbol: STZ) were yielding above the 3% mark based on its quarterly dividend (annualized to $4.08), with the stock changing hands as low as $135.25 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased share ...

Constellation Brands TodaySTZConstellation Brands$142.89 -0.01 (-0.01%) 52-Week Range$142.25▼$261.06Dividend Yield2.86%Price Target$192.28Add to WatchlistConstellation Brands NYSE: STZ, one of Warren Buffett's big-time bets at Berkshire Hathaway NYSE: BRK.B, is suffering in September. On Sept. 2, Constellation announced a significant cut to its full-year guidance, which has led to shares falling by almost 10% during the month. This puts a damper on Berkshire’s $2.2 billion investment. Given the reduction i ...

Core Insights - Constellation Brands (NYSE: STZ) has experienced a 15.3% decline in shares over the last 21 trading days due to a lowered fiscal 2026 sales and earnings outlook, primarily driven by decreased demand for its beers among the Hispanic population in the U.S. [2] Group 1: Company Performance - Constellation Brands is a $25 billion company generating $10 billion in revenue, with shares currently priced at $142.90 [6] - The company reported a last 12-month revenue growth of -0.5% and an operating margin of 31.7% [6] - The debt-to-equity ratio stands at 0.46, indicating a relatively low level of debt, while the cash-to-assets ratio is extremely low [6] Group 2: Historical Stock Performance - During the 2022 inflation shock, STZ's stock fell 20.1% from a high of $261.05 on December 2, 2022, to $208.68 on January 5, 2023, compared to a 25.4% decline for the S&P 500 [7] - The stock fully regained its pre-crisis peak by July 19, 2023, and reached a high of $272.80 on July 31, 2023, before currently trading at $142.90 [7] - In the 2020 COVID-19 pandemic, STZ fell 49.3% from a high of $208.34 on February 20, 2020, to $105.64 on March 23, 2020, while the S&P 500 experienced a 33.9% decline [9] - The stock fully recovered to its pre-crisis peak by December 3, 2020 [9]

Constellation Brands, Inc. (NYSE:STZ) ranks among the most active stocks to buy according to Wall Street analysts. On September 3, Jefferies decreased Constellation Brands, Inc. (NYSE:STZ)’s price target to $179 from $205, keeping a Buy rating on the company’s shares. The decrease comes after Jefferies cited ongoing issues in the Hispanic consumer category that have become more substantial than expected. Antonio Gravante / Shutterstock.com Jefferies pointed out that the beer picture has worsened, result ...

In observance of Yom Kippur the company will report second quarter financial results October 6, 2025 and host its conference call October 7, 2025, previously scheduled for October 1 and 2, respectivelyROCHESTER, N.Y., Sept. 09, 2025 (GLOBE NEWSWIRE) -- Constellation Brands, Inc. (NYSE: STZ), a leading beverage alcohol company, announced today a revised date to report its financial results for its second quarter ended August 31, 2025, of Monday, October 6, 2025 after the close of the U.S. markets by posting ...

Valued at a market cap of $25.8 billion, Constellation Brands, Inc. (STZ) is a leading beverage alcohol company that produces, imports, markets, and sells beer, wine, and spirits. The Rochester, New York-based company is best known for iconic names like Corona, Modelo, Robert Mondavi, and Svedka Vodka. Companies worth $10 billion or more are typically classified as “large-cap stocks,” and STZ fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and domi ...

Core Insights - Constellation Brands and Kraft Heinz have both experienced significant stock declines over the past year, with Constellation down over 40% and Kraft Heinz down about 25%, while the S&P 500 rose nearly 20% during the same period [3][9][12] Constellation Brands - Constellation generates most of its revenue from beer, facing challenges from tariffs and declining demand among younger consumers [5][7] - The Trump administration's tariffs on aluminum have increased from 25% to 50%, impacting Constellation's margins as 39% of its beer shipments come in aluminum cans [6] - The company is attempting to adapt by launching new alcoholic beverages and divesting lower-end brands to focus on higher-end products, which may strengthen long-term margins but hinder near-term revenue growth [8] - For fiscal 2026, Constellation expects organic sales to dip 4% to 6% and comparable EPS to drop 16% to 18%, leading to a stock valuation of 12 times forward earnings [9] Kraft Heinz - Kraft Heinz owns a portfolio of well-known brands but has struggled post-merger due to a focus on cost-cutting rather than brand revitalization [10] - The company faced a $15 billion write-down in 2019 and has since recovered by divesting weaker brands and raising prices, but organic net sales dipped 2% in 2024 [11][12] - For 2025, Kraft Heinz expects organic net sales to decline by 1.5% to 3.5% and adjusted EPS to drop 13% to 18%, with the stock trading at 10 times forward earnings [12] - Kraft Heinz plans to split into two companies by the second half of 2026, but concerns remain about whether this will effectively address its challenges [13] Investment Considerations - Both companies face significant challenges that hinder their attractiveness as investments, with a preference for Constellation due to clearer long-term strategies [14][15]

Core Viewpoint - The article expresses a bearish outlook on Constellation Brands (NYSE: STZ), citing lackluster operating performance and a modest future outlook as reasons for a "sell" rating [1]. Group 1: Company Performance - Constellation Brands has shown underwhelming operating performance, which has influenced the analyst's negative rating [1]. - The future outlook for the company is described as modest, indicating limited growth potential [1]. Group 2: Investment Philosophy - The analyst emphasizes the importance of identifying undervalued stocks with a focus on balancing risk and reward [1]. - A belief is expressed that the best investment ideas are often the simplest, and that contrarian views can be beneficial [1].

Core Viewpoint - Constellation Brands has experienced a significant stock decline of 32% in 2023, underperforming the S&P 500, which has risen by 9% due to lowered sales and earnings forecasts linked to decreased demand for its beers among the Hispanic community in the U.S. [2][3] Financial Performance - Constellation Brands' revenues have decreased significantly in recent years, with a 0.5% decline from $10 billion over the last 12 months, contrasting with a 5.1% growth for the S&P 500 [6] - The company holds a price-to-sales (P/S) ratio of 2.7 compared to 3.3 for the S&P 500, and a price-to-free cash flow (P/FCF) ratio of 12.9 versus 21.0 for the S&P 500 [6] - Operating income over the last four quarters amounted to $3.2 billion, with an operating margin of 31.7%, while net income registered at -$442 million, indicating a net income margin of -4.4% [12] Profitability and Financial Stability - Profit margins for Constellation Brands are approximately at the median level for companies within the Trefis coverage universe, but the balance sheet appears fragile [7][8] - The company has a debt of $12 billion against a market capitalization of $27 billion, resulting in a debt-to-equity ratio of 43.2%, which is higher than the S&P 500's 20.5% [12] Resilience in Downturns - STZ stock has shown slightly worse performance than the S&P 500 during recent downturns, indicating moderate resilience [9][10] - The overall assessment of Constellation Brands across key performance indicators shows weaknesses, reflected in its current low valuation, with growth rated as very weak, profitability as moderate, financial stability as weak, and downturn resilience as moderate [13]

Market Trends & Industry Dynamics - Constellation Brands (STC) blames lower demand from Hispanic consumers for its underperformance [1] - The beer industry is facing significant challenges, including tariffs and changing consumer preferences [3] - Molson Coors is a decent company [3] - The rise of cannabis and GLP-1 drugs adds further pressure on the beer market [4] Valuation & Financial Performance - Molson Coors is valued at nine times earnings [2] - Constellation Brands is valued at 12 times earnings [2] - Molson Coors has a valuation of 99 billion [2] - Constellation Brands has a valuation of 26 billion [2] - Molson Coors sells at nine times at 37% [3] Investment Opportunities & Potential Risks - It's possible to argue that STC should be at half of its current valuation [3] - Concerns exist about Constellation Brands' valuation and its ability to maintain its current level [3] - Doubts are raised about the wisdom of investing in Constellation Brands, even if Berkshire Hathaway did [4]