Constellation Brands Stock Outlook: Is Wall Street Bullish or Bearish?

Core Insights - Constellation Brands, Inc. is a major player in the premium alcoholic beverages market, with a market capitalization of $22.8 billion and exclusive U.S. rights to popular beer brands like Corona and Modelo [1] Performance Overview - Over the past 52 weeks, Constellation Brands' shares have decreased by 46%, significantly underperforming the S&P 500 Index, which has gained 12.3% during the same period [2] - Year-to-date, the stock is down 41.3%, while the S&P 500 has increased by 12.5% [2] - The company has also underperformed compared to the First Trust Nasdaq Food & Beverage ETF, which saw a 10% decline over the past 52 weeks and a 7.2% drop year-to-date [3] Financial Results - In Q2, Constellation Brands reported net sales of $2.5 billion, a 15% decline year-over-year, but slightly above analyst expectations [3] - The adjusted EPS for the quarter was $3.63, down 16% from the previous year, yet it exceeded consensus estimates of $3.37 [3] - Following the earnings report, shares fell by 2.5% due to the decline in key metrics [3] Future Earnings Expectations - For the fiscal year ending in February 2026, analysts project a 16.6% year-over-year decline in EPS to $11.50 [4] - The company's earnings surprise history is mixed, with two out of the last four quarters exceeding consensus estimates [4] Analyst Ratings - Among 24 analysts covering Constellation Brands, the consensus rating is a "Moderate Buy," with a distribution of ratings including 10 "Strong Buy," 3 "Moderate Buy," 9 "Hold," 1 "Moderate Sell," and 1 "Strong Sell" [4] - Recently, Macquarie analyst Drew Levine resumed coverage with a "Hold" rating and a price target of $153, indicating a potential upside of 17.2% from current levels [5] Price Targets - The mean price target for Constellation Brands is $169.91, suggesting a 30.1% premium from current price levels [6] - The highest price target of $215 indicates a potential upside of 64.6% from current levels [6]