Constellation Brands TodaySTZConstellation Brands$141.91 -1.06 (-0.74%) 52-Week Range$131.20▼$247.63Dividend Yield2.88%P/E Ratio20.70Price Target$186.44Add to WatchlistSince hitting rock bottom, Warren Buffett’s $2.2 billion bet, Constellation Brands NYSE: STZ, has managed to stage a modest recovery. Constellation shares fell to less than $132 in late September. The last time shares traded so low was in March 2020, due to the COVID market crash. However, shares have since rebounded by about 8% to trade jus ...

Buffett is finding more value in today's market, but this one stands out as an exceptional bargain.Warren Buffett is widely considered one of the greatest investors of all time. And there's a good reason for that. He's produced phenomenal results for his investors in his nearly 70-year career as an investment manager.His Buffett Limited Partnership compounded its capital at an annualized rate of 31.6% between 1956 and 1968. Since taking over Berkshire Hathaway (BRK.A -0.76%) (BRK.B -0.78%) in the middle of ...

Constellation Brands (STZ) is navigating a tough beer market as multiple pressures weigh on consumption. "The overall industry is a bit suppressed because of the lack of engagement and the lack of consumers going out and drinking and consuming in the way that they normally would," CEO Bill Newlands told Yahoo Finance's Opening Bid. The company's stock is down nearly 36% year to date. Over the same period, shares of Coors Light maker Molson Coors (TAP) are down 20%, while Bud Light maker Anheuser-Busch's ...

Constellation Brands, Inc. (NYSE:STZ) is one of the stocks in Jim Cramer’s game plan for this week. Cramer started his game plan with the stock, as he remarked: “Monday, Constellation Brands, STZ, reports. The company has fallen out of grace along with the rest of the alcohol plays. CEO Bill Newlands acknowledged on the last earnings call that the company is being impacted by ICE raids in popular shopping destinations. The declining volumes has matched the decline in the stock. Constellation has been tryi ...

Key Takeaways Q2 FY26 EPS of $3.63 beat estimates but dropped 16% year over year; sales fell 15% to $2.48B.Beer sales declined 7%, hurt by softer demand and inventory rebalancing, partly offset by Pacifico growth.STZ generated $1.1B in free cash flow and returned $604M via buybacks and dividends.Constellation Brands, Inc. (STZ) reported second-quarter fiscal 2026 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. The company’s sales and earnings declined year over year on weak ...

Financial Data and Key Metrics Changes - The company reported a decrease in top-line guidance while maintaining capital expenditure (CAPEX) guidance, indicating confidence in long-term growth despite near-term headwinds [12][14]. - The beer operating margin is expected to remain best in class, even with some deleveraging due to volume declines [65]. Business Line Data and Key Metrics Changes - The beer segment experienced a drop in sales volume, particularly among Hispanic consumers, attributed to macroeconomic factors and socio-economic concerns [9][10]. - The wine and spirits business showed positive growth, with key brands like Mi Campo and The Prisoner gaining market share [36][70]. Market Data and Key Metrics Changes - The company noted that Hispanic consumer sentiment has been particularly suppressed, impacting sales volume [8][9]. - The overall market for beer is facing challenges, with significant differences in performance across various demographic segments [76]. Company Strategy and Development Direction - The company is focusing on maintaining marketing investments to drive long-term growth, despite current economic challenges [26][60]. - There is an emphasis on price pack architecture to cater to consumers with varying financial capabilities, ensuring accessibility to products [44][60]. Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about hitting the bottom of the current sales volume decline, while acknowledging unprecedented volatility in the market [76]. - The company is committed to investing in long-term growth and believes that socio-economic conditions will eventually improve, allowing for a return to traditional growth profiles [26][67]. Other Important Information - The company has achieved significant cost savings, totaling over $500 million since the investor day a couple of years ago, with $105 million realized year-to-date [48]. - Tariff impacts are expected to be around $70 million for the beer business and $20 million for the wine business this year [53]. Q&A Session Summary Question: Impact of ICE activities on volume growth - Management indicated that consumer sentiment is a key factor, with 80% of consumers expressing concern about the socio-economic environment, which has affected engagement and volume growth [9][10]. Question: CAPEX guidance amidst weaker top line - Management stated that CAPEX guidance remains unchanged due to long-term growth commitments, although they are exploring ways to potentially reduce CAPEX in future years [12][14]. Question: Loyalty metrics for Corona and Modelo - Management highlighted increased loyalty for Corona and Modelo, despite recent challenges for Corona Extra, with strong performance from Corona Familiar and Sunbrew [18][19]. Question: Structural vs. cyclical factors affecting beer category - Management believes that cyclical factors are more significant than structural ones, although they acknowledge potential impacts from health trends and cannabis substitution [23][24]. Question: Beer margin and cost savings - The company reported $65 million in cost savings for Q2 and is focused on operational efficiencies to continue this trend [47][48]. Question: Brand positioning of Corona - Management is refining Corona's brand positioning to focus more on the beer itself and its refreshing qualities, moving away from celebrity-heavy marketing [54][55]. Question: Pricing strategy amidst economic challenges - The company expects to maintain a 1%-2% pricing increase, adjusting strategies based on market conditions and consumer sentiment [72][73]. Question: Depletions expectations for the second half - Management noted that depletions are expected to track closely with shipments, but there is caution due to unprecedented market volatility [76].

Key Takeaways Constellation Brands is set to post Q2 FY26 revenues of $2.5B, down 15.8% from last year.Earnings are expected at $3.37 per share, a 21.9% year-over-year decline.Beer brands like Modelo and Corona stay strong, offsetting softness in wine and spirits.Constellation Brands, Inc. (STZ) is scheduled to release second-quarter fiscal 2026 results on Oct. 6, 2025. The alcoholic beverage bigwig is expected to have recorded a decline in its top and bottom lines in the to-be-reported quarter.The Zacks Co ...

Constellation Brands, Inc. (NYSE:STZ) is set to release its quarterly earnings with an expected EPS of $3.37 and revenue of approximately $2.48 billion.Changing consumer habits among younger demographics and a high debt-to-equity ratio of 1.59 contribute to the company's financial challenges.Constellation Brands, Inc. (NYSE:STZ), a leading global producer of beers, wines, and spirits, is known for popular beer brands like Corona, Modelo, and Pacifico, primarily imported from Mexico. Despite its strong brand ...

We came across a bullish thesis on Constellation Brands, Inc. on slo capital’s Substack by Justin. In this article, we will summarize the bulls’ thesis on STZ. Constellation Brands, Inc.'s share was trading at $133.02 as of September 18th. STZ’s trailing and forward P/E were 18.50 and 11.38 respectively according to Yahoo Finance. corona, beer, cold, lemon, table, mexican, extra, lime, black, editorial, and, Antonio Gravante / Shutterstock.com Constellation Brands (STZ), owner of Corona, Modelo, Pacific ...

Core Viewpoint - Constellation Brands, once a stable blue chip stock, has seen its stock price drop approximately 37% this year, contrasting with a 12% rise in the S&P 500, raising questions about whether this decline presents a buying opportunity or signals further challenges ahead [1][12]. Revenue Sources - The majority of Constellation's revenue is derived from its beer business, with significant imports from Mexico, including brands like Corona and Modelo. Approximately 50% of beer sales are to Hispanic consumers, while the remaining revenue comes from smaller wine and spirits segments [3]. Major Challenges - **Declining Consumption**: Younger Millennial and Gen Z consumers are drinking less beer due to health trends, economic constraints, and changing social habits [4]. - **Economic Pressures on Consumers**: Many Hispanic consumers are cutting discretionary spending due to immigration issues and the impact of tariffs on various industries [5]. - **Tariff Impact**: The increase in tariffs on aluminum from 25% to 50% has negatively affected canned beer margins, as aluminum cans account for about 39% of beer shipments from Mexico [5]. - **Divestment Strategy**: Constellation is divesting cheaper wine and spirits brands to focus on higher-end products, which may enhance long-term gross margins but is currently hindering revenue growth [6]. Revenue Growth Trends - From fiscal 2021 to fiscal 2025, Constellation's revenue grew at a CAGR of 4%, primarily driven by its beer business, while wine and spirits segments continued to decline [8]. - Beer revenue growth rates were 8%, 11%, 11%, 9%, and 5% from FY 2021 to FY 2025, while wine and spirits experienced negative growth [9]. Guidance and Future Outlook - In September, Constellation revised its fiscal 2026 guidance, expecting organic sales to decline by 4% to 6%, with beer sales projected to drop by 2% to 4%. Comparable EPS is anticipated to decrease by 16% to 18% [10][11]. - Analysts predict a decline in revenue and comparable EPS for fiscal 2026 by 11% and 17%, respectively, but expect a slight recovery in fiscal 2027 with revenue and EPS growth of 1% and 10% [12][13]. Market Sentiment - Despite the stock appearing cheap at 12 times next year's earnings, ongoing declines in sales and profits may hinder its ability to achieve a higher valuation [12]. - The CEO indicated that the challenging macroeconomic environment has dampened consumer demand, suggesting that the downturn may persist [11].