About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Constellation Brands, Inc. (NYSE:STZ) ranks among the best sin stocks to buy in 2026. On November 21, Piper Sandler cut its price target for Constellation Brands, Inc. (NYSE:STZ) to $135 from $155 while keeping a Neutral rating for the alcohol company. The firm cited increasing strain from GLP-1 weight loss pharmaceuticals as a major reason for the downgrading, stating that recent price cuts for these prescriptions have likely encouraged consumer uptake. According to Piper Sandler, this tendency might prod ...

Core Insights - Constellation Brands has seen a significant decline in stock value, dropping over 40% in the past three years while the S&P 500 increased by over 70% [1] - The company faces long-term challenges including stalled growth, rising tariffs, and substantial losses [1] Revenue Breakdown - In fiscal 2025, Constellation generated 84% of its revenue from beer, 14% from wine, and 4% from spirits [3] - Beer revenue growth has decreased from 11% in FY 2023 to 5% in FY 2025, while wine and spirits segments have seen negative growth [4] Challenges Faced - The beer business has been impacted by changing consumer preferences, particularly among younger demographics, and economic pressures on Hispanic consumers [4][5] - Rising tariffs on aluminum cans and supply chain issues in Mexico have forced price increases, further slowing growth [5] - The wine and spirits segments have struggled as consumers shifted away from cheaper brands, leading to a focus on higher-end products but resulting in reduced revenues [6] Future Projections - In the first half of fiscal 2026, revenue fell 10% year over year, with expectations of further declines in beer, wine, and spirits sales [8] - Analysts predict total revenue will drop 11% in fiscal 2026 but may stabilize in fiscal 2027 and grow by 3% in fiscal 2028 [9] Profitability Outlook - Constellation turned unprofitable in fiscal 2022 and 2023 due to poor investments but is expected to return to profitability in fiscal 2026 [10][11] - Analysts forecast GAAP earnings per share (EPS) growth of 18% in fiscal 2027 and 4% in fiscal 2028, despite a projected decline in non-GAAP EPS in fiscal 2026 [11] Stock Valuation - The stock trades at 12 times forward adjusted earnings estimates with a forward dividend yield of 2.9%, indicating limited downside potential [13] - However, upside potential may be constrained until the company demonstrates a sustainable business model [13]

Core Viewpoint - Constellation Brands is facing significant challenges, including declining sales and rising tariffs, but there are signs that the stock may be oversold, potentially leading to a recovery in 2026 [1][9]. Company Performance - In the first half of fiscal 2026, Constellation Brands reported net sales of $5 billion, a decrease of over 10% compared to previous periods [4]. - The company earned $982 million during this period, an increase attributed to a goodwill impairment of nearly $2.3 billion in the first half of fiscal 2024 [4]. - The stock has lost almost 35% of its value over the last year [4]. Market Position - The current market capitalization of Constellation Brands is $26 billion, with a current stock price of $147.42 [5][6]. - The stock has a 52-week range of $126.45 to $240.32, indicating significant volatility [6]. Valuation and Dividends - The goodwill impairment has raised the price-to-earnings (P/E) ratio to 21, but the forward P/E of 13 is considered low [7]. - Constellation Brands has consistently paid and increased its dividend since 2015, with a current annual payout of $4.08 per share, resulting in a dividend yield of 2.8% [7]. Cash Flow and Share Buybacks - The company is projected to generate between $1.3 billion and $1.4 billion in free cash flow in fiscal 2026, sufficient to cover its annual dividend cost of approximately $725 million [8]. - The outstanding share count has decreased by over 3% in the last year, which may enhance the potential for share price recovery [8]. Future Outlook - Despite concerns over declining alcohol consumption and rising tariffs, the stock's 40% decline suggests that investors may have overreacted [9]. - Buying Constellation stock now allows investors to enter at a low valuation while benefiting from a high and rising dividend return, which could increase demand for shares [10].

This top beer stock is undervalued after a brutal sell-off this year.Constellation Brands (STZ +0.70%) has a long record of paying dividends and delivering returns to shareholders. However, the stock has moved in the opposite direction from the S&P 500 index over the past two years. Over the last 12 months, the stock has declined by 41%, compared to a 12% gain for the S&P 500.Sales of the company's top beer brands, such as Corona and Modelo, have suffered due to economic pressure on its core customers. Stil ...

~~~雅各布专栏 —— 专注行业第一品牌商业模式研究~~~ 雅各布专栏是一个拥有 5 万名 CxO 的知识内容社区，也是职场不同角色的CxO（Qualified CxO & Intrapreneurs & Entrepreneur）造就增长的首选孵化 平台。 创始人雅各布拥有丰富的职业经历，曾任 Nike 大中华区 CxO负责零售，供应链，数字化；LVMH affiliate Trendy Group CxO负责并购，品牌数字化转 型；东方国际Lily女装CxO负责战略及数字化；微软合资公司CxO负责产品及解决方案构架；J&J和Eli Lily医药公司负责IT和Compliance。 创始人也是持续创业者，尤其在半导体，品牌零售，生命科学，新能源等赛道。 （以下为正文） 题图来源于网络 I.执行摘要:全球巨头品牌的解剖 科罗娜（Corona）啤酒的现代成功故事是一项独特的案例研究，它将强大的情感品牌资产与全球啤酒行业中最复杂的公司结构之一相结合。该品牌自 1925 年创立以来，其核心战略始终围绕"逃离"和"海滩心态"这一生活方式定位展开，这种策略使它在技术差异化的拥挤市场中脱颖而出，创造了坚固的 竞争护城河。 ...

Core Insights - Constellation Brands (STZ) has seen a significant 41% decline in stock price over the past 12 months, indicating potential challenges in the market [1] Company Overview - Constellation Brands is an international producer of beer, wine, and spirits, which positions itself defensively in the market [1] - The company offers dividend income and maintains above-market margins, which may provide some resilience against market fluctuations [1]

Core Insights - Constellation Brands (STZ) stock has continued to decline since early September, aligning with previous expectations regarding its performance [1] Group 1 - The focus is on identifying undervalued stocks with a promising outlook, emphasizing the importance of understanding risk and reward [1] - The investment philosophy suggests that the best ideas are often the simplest, and a contrarian approach may yield better results [1]

Group 1 - Constellation Brands (STZ) stock has continued to decline since early September, indicating ongoing market challenges [1] - The focus is on identifying undervalued stocks with a balance of risk and reward, emphasizing the importance of understanding ownership [1] - The belief is that the best investment ideas are often the simplest, with a contrarian approach being favored [1]

Core Viewpoint - Constellation Brands, Inc. will report its financial results for the third quarter ended November 30, 2025, on January 7, 2026, with a conference call scheduled for January 8, 2026, to discuss the results and future outlook [1][2]. Group 1: Financial Reporting - The financial results will be posted on the company's investor relations website after the U.S. markets close on January 7, 2026 [1]. - A live conference call will take place on January 8, 2026, at 10:30 a.m. ET, featuring discussions led by the President and CEO, Bill Newlands, and the Executive Vice President and CFO, Garth Hankinson [1][2]. - Access to the conference call will be available via a dedicated phone line and a listen-only webcast on the investor relations website [2]. Group 2: Company Overview - Constellation Brands is a leading international producer and marketer of beer, wine, and spirits, with operations in the U.S., Mexico, New Zealand, and Italy [3]. - The company aims to build beloved brands and is recognized as one of the fastest-growing large consumer packaged goods (CPG) companies in the U.S. retail sector [3]. - The product portfolio includes high-end imported beers like Corona Extra and Modelo Especial, a variety of wines, and craft spirits such as Casa Noble Tequila and High West Whiskey [4]. Group 3: Sustainability and ESG Strategy - The company emphasizes sustainable and responsible operations as an agriculture-based entity, integrating its Environmental, Social, and Governance (ESG) strategy into its business model [5]. - Constellation Brands focuses on environmental stewardship, community investment, and promoting responsible alcohol consumption as part of its long-term business strategy [5].