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Investor Insights

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

Constellation Brands Inc (STZ) is currently facing significant challenges, with experts noting a decline in stock performance and concerns regarding its reliance on Mexican beer imports. The company has reported weak financial numbers and has cut its full-year sales forecast, leading some analysts to question the urgency of its management in addressing these issues. The competitive landscape is also shifting, with weight-loss drugs potentially reducing alcohol consumption and new cannabis options attracting younger consumers. Despite these challenges, some experts highlight STZ's robust cash flow, strong market position with popular brands like Modelo and Corona, and potential for future profitability through share buybacks and new product offerings. Overall, the company exhibits both risks and opportunities as it navigates a changing market environment.

Consensus
Bearish
Valuation
Undervalued
WATCH

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.

SELL
The 3rd-biggest loser on the S&P in January

Down 19% last month, but was already under pressure after the election and a bad quarter. The CEO lacks urgency is fixing the company's problems. Seems to be in denial. With the new Mexico tariffs, he sold half his position today.

SELL

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). 

DON'T BUY

Today they reported weak numbers, missing on almost every line and cut their full-year sales forecast.

RISKY

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.

RISKY

It rallied 3% today, perhaps by a market sensing that Harris will win the election. STZ sells many beers that are popular with Latinos, and immigration will be more liberal under Harris. STZ's beers are made in Mexico, so it could be hit by a Trump tariff. 

HOLD

He doesn't think a recession is around the corner, would pick names for continued mid-cycle economic growth. This name doesn't have as much growth as others, but earnings are reliable.

DON'T BUY

80% of revenue from Mexican beer imports like Corona and Modelo. Relative to industry, has done well. Wine and spirits side hasn't performed as well as management had wanted. Risky, expects it to underperform index. 

DON'T BUY

Stock has been sinking for months and faces concerns of the eight-loss drugs impacted their beer sales.

HOLD

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.

TOP PICK

Leading wine, beer, and spirits. Safe choice. Favourable consumer trends, including moving towards premium offerings. Strong cashflow, will continue buybacks. 11% growth rate. Down 10% from recent highs, chance to buy. Yield is 1.6%, recently raised by 13%.

(Analysts’ price target is $298.80)
BUY

Was upgraded today. Likes it long term given its dividend growth. They did a great job in 2023 during the Bud Light debacle by growing market share, led by Modelo beer. is well-run.

PARTIAL BUY

They report Thursday. They sell the top-selling beer in the US, Modelo. Should report a good quarter. Beer sales have been strong and their flow is flow is good, but STZ needs to pay down debt.

WATCH
The effect of Eli Lilly's diabetes drug which curbs appetite including alcohol.

The drug impacts hard liquor, not beer. Doesn't know why. He's watching this.

BUY

Spirits sales have been weak in the industry the past year, so he greeted STZ's earning today with worry. Beer sales did very well, but not wine and spirits. Still, STZ raised its full-year earnings and cash flow forecast. Shares were up 2% today after an early sell-off.

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Constellation Brands Inc(STZ-N) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 4

Neutral - Hold Signals / Votes : 2

Bearish - Sell Signals / Votes : 5

Total Signals / Votes : 11

Stockchase rating for Constellation Brands Inc is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Constellation Brands Inc(STZ-N) Frequently Asked Questions

What is Constellation Brands Inc stock symbol?

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

Is Constellation Brands Inc a buy or a sell?

In the last year, 11 stock analysts published opinions about STZ-N. 4 analysts recommended to BUY the stock. 5 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Constellation Brands Inc.

Is Constellation Brands Inc a good investment or a top pick?

Constellation Brands Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for Constellation Brands Inc.

Why is Constellation Brands Inc stock dropping?

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.

Is Constellation Brands Inc worth watching?

11 stock analysts on Stockchase covered Constellation Brands Inc In the last year. It is a trending stock that is worth watching.

What is Constellation Brands Inc stock price?

On 2025-03-25, Constellation Brands Inc (STZ-N) stock closed at a price of $179.69.