NYSE:STZ

Constellation Brands Inc (STZ)

139.66
-6.64 (4.54%)
as of Jun 29, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 29, 2026, 12:00 am

This summary was created by AI, based on 2 opinions in the last 12 months.

Constellation Brands Inc (STZ-N) is set to report earnings insights that highlight mixed perspectives from analysts. One expert expresses optimism, showcasing confidence in the newly appointed CEO and anticipating a positive shift in beer and cocktail sales. Conversely, another expert paints a more negative picture, noting that the broader alcohol industry, including Constellation, has struggled recently, facing challenges such as decreased sales driven by ICE raids in key shopping areas. This year, the stock has experienced a significant decline of 36%, with its current price-to-earnings ratio at a notably low 12x. While some view this low valuation as attractive, it is deemed justified due to ongoing weak sales and the emergence of competition from GLP-1 drugs. Overall, while there are signs of potential recovery, significant headwinds linger for Constellation Brands.

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Consensus
Mixed
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Valuation
Undervalued
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Similar
Diageo,DEO
HOLD
Hold or Sell? They are going through the same debate. The purchase of the cannabis operations flattened the stock 2 years ago and also with the recent dismissal of the CEO. The beer brands are doing well, the core businesses are doing well. Thinks the stock will go up. Would be patient and hold on. No need to rush and sell it.
PAST TOP PICK
(A Top Pick Oct 02/18, Down 5%) They still own a bunch of options and warrants in Canopy so they can take control of the company within 5 years if they choose. They own the fastest growing beer brands as well as a wine portfolio. It is a nice stable growth from those businesses. The Marijuana story complicated it recently. They are looking at it as a long term play for when the US legalizes it.
DON'T BUY

Their focus is their internal liquor brands, whose sales have been flat. They invested in cannabis (Canopy) as a way to grow, but is stalled. We'll see about the long-term. Invest elsewhere in consumer staples.

COMMENT

The push out of a senior executive, Bruce Linton, at WEED-T is a good signal for the company he thinks. There was not damage done by the Exec and he has done well personally by the agreement and is off the Board as well. This gives the Exec a great opportunity to sell his shares at a great value. The company has a $40 billion market cap. Constellation Brands had to take a charge against their $5 billion investment. Right now, Norman believes this is not an investable space yet -- the real leaders have not yet emerged. He expects further shake-outs in the space to come. There is no real brand recognition today.

PAST TOP PICK
(A Top Pick Feb 28/18, Down 11%) Spending money on cannabis product development, sold some lower premium brands. In transition. They could introduce something and then you'll be sorry you didn't buy earlier.
WEAK BUY
They bought into Canopy and cannabis. These stocks are decently valued and do well in a defensive environment. You can buy this if you want a consumer staples name.
PAST TOP PICK
(A Top Pick Feb 28/18, Down 21%) Bought Canopy. She thinks this was a great buy, but others think it an expensive acquisition with no immediate payout. Consumer stocks haven't participated in the recent rally, as they are more defensive. Likes management. Five years from now, the acquisition will seem like a smart buy.
BUY
They invested in Canopy growth (marijuana stock) but the stock is still lower than when they made that investment. He thinks things will work out well for them. This is the right partner for pot beverages. You can buy the stock now and you will get something out of it.
WATCH
They have a solid diversified portfolio, but he is uncertain about the risk of them getting into cannabis. Earnings are expected to be flat in 2019, so he is not quite ready to get in. He would watch it for a fundamental and technical confirmation it is turning up.
COMMENT
Before their last earnings report, STZ was one of the top S&P names. It's not a barn-burning growth company. He prefers a spirits company, like in Europe. He can't predict what STZ will do in cannabis, which is a big investment for them. If you want to buy weed, buy weed; want to buy alcohol, buy alcohol stocks. He'll do more research into this. Can't say whether to buy or sell this.
PAST TOP PICK
(A Top Pick Oct 02/18, Down 23%) He owned this before their Canopy investment. They have a good portfolio of alcohol brands, creating stable income. The volatility has come from their Canopy investment. He feels the cannabis industry will shake out in the next three years. But cannabis, like alcohol and gambling, is a sin stock that will withstand an economic downturn.
DON'T BUY
Before the acquisition of Canopy, they were in spirits and beverage business. They spent a lot of money for Canopy Growth. They may have to take a write down on that investment in the coming year. Debt is a concern.
COMMENT

One of the world’s largest beverage makers. Is a high risk stock. Probably has about as good a chart you can have. Just seems to be in a sidewise consolidation pattern right now. With respect to their Canopy investment, the marijuana space has dropped significantly and this will impact the share price of Constellation.

DON'T BUY

It is interesting that they are investing into Canopy. He thinks it is more like a hedge for them. In the context it is a cheap hedge. This shouldn’t be the basis to invest in the stock. The marijuana space is nascent. He wouldn’t analyze the company with that component. He wouldn’t invest in this stock.

TOP PICK

He owned this before they bought in Canopy. They own Corona and other Mexican brands, plus wine. The beers have been growing very well. STZ has one of the best growth rates in a sluggish sector. He isn't a cannabis bull, but he sees upside in this space. (1.4% dividend, Analysts' price target: $242.00)

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