Related posts
Oil spikes on Mideast tensions3 Cannabis Stocks to go HigherThursday markets recover early lossesThis summary was created by AI, based on 13 opinions in the last 12 months.
Constellation Brands Inc (STZ) has faced significant volatility, highlighted by a substantial selloff in January followed by attempts at recovery, suggesting a potential reverse head and shoulders pattern. However, the stock's performance has been hampered by external challenges such as economic pressure, increased competition from weight-loss drugs, and tariffs affecting their Mexican beer portfolio. The company reported weak quarterly numbers, compelling it to cut forecasts, which has raised concerns among experts. Despite these headwinds, STZ's strong cash flow and leading position in the beer market, particularly with brands like Modelo, provide some reassurance. Analysts see potential in its ability to adapt and innovate, particularly if it can diversify its offerings and improve market perceptions around alcohol consumption trends.
Yesterday, LVMH reported a 36% decline in wine and spirits. That is shocking for the entire alcohol sector, and LVMH is the best performer. STZ is -27% in the past year. No alcohol stock is willing to admit to an existential threat, but rather than drinking is normalizing after Covid. He disagrees. Cannabis is cheaper than alcohol, there's a new advisory that links alcohol to increased risk of cancer, younger people are drinking less, and the weight-loss drugs are limited alcohol cravings. What could turn this around is offering something new, like new drinks and better prices (stop increasing prices).
It's been up and down and down. It faces headwinds from the weight-loss drugs reduing consumption of alcohol, potential tariffs on Mexican goods (Modelo is a major brand of theirs), and Latinos, a key consumer, could be deported under Trump. But STZ spews cash and is growing, leading to Trump exempting STZ from tariffs. He just added more shares. He wants STZ to talk about this big brewery they're building in Mexico. He hopes they launch a huge share buyback. This is tricky.
Last week, it reported stellar numbers but shares still fell, a victim to persistent misconceptions. Their Modelo is the #1 beer in the US and is gaining market share. Pacifico sales are up 21%. STZ operating margins were up 260 basis points. They beat Q1 EPS. Shares should be selling at $300. The problem is STZ also sells hard liquor, which Wall Street has given up on as well as doubts that beer's popularity is waning. Has huge free cash flow, are buying back shares, and is expanding facilities. Other threats are the weight-loss drugs and the popularity of cannabis. He won't abandon this stock though.
Constellation Brands Inc is a American stock, trading under the symbol STZ-N on the New York Stock Exchange (STZ). It is usually referred to as NYSE:STZ or STZ-N
In the last year, 12 stock analysts published opinions about STZ-N. 4 analysts recommended to BUY the stock. 4 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Constellation Brands Inc.
Constellation Brands Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for Constellation Brands Inc.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
12 stock analysts on Stockchase covered Constellation Brands Inc In the last year. It is a trending stock that is worth watching.
On 2025-04-01, Constellation Brands Inc (STZ-N) stock closed at a price of $184.81.
Big selloff in January, with a lower low in February. Now trying to establish a higher low in March. If it can hold $175, this is a reverse head and shoulders pattern. Looks like a pretty strong technical base forming; for confirmation, need it to break out ~$185-190 to complete the base. If it does, really interesting. RSI still fairly weak.