Constellation Brands, Inc. (STZ-B)

Constellation Brands remains a sell as business fundamentals deteriorate, with no credible signs of stabilization or turnaround. STZ's Q1 2026 saw organic sales down 8% and operating income down 13%, with beer volumes falling 8.7% and the wine segment in operating loss. Despite a low P/E ratio, STZ's high EV/FCF multiple (25–26x) is unjustified for a shrinking, structurally challenged business.

Constellation Brands is deeply undervalued and poised for recovery as capital rotates from overheated AI stocks to defensive consumer staples. STZ's focus on high-margin beer, strategic premiumization, and cost-saving restructuring position it well despite recent sales declines and sector headwinds. STZ trades at attractive valuation metrics versus peers, with a strong dividend history and robust governance supporting medium- to long-term value creation.

Constellation's core beer brands are rapidly gaining market share with its dominant brand portfolio, showing ~7.5% annual volume growth that consistently defies the declining U.S. beer industry. My DCF model indicates strong undervaluation with a fair value of $236 per share, offering a 68% upside as the market overemphasizes industry headwinds and ignores the company's strengths. A renewed focus on shareholder returns is underway, driven by a $4 billion stock buyback program and the strategic sale of underperforming assets.

Constellation Brands is facing softer demand, but trends are stabilizing, inventories are lean, and easier comparisons should help revenue performance improve through FY26 and recover in FY27. Strong execution around innovation, pricing flexibility, and shelf-space expansion is helping Constellation gain share despite macro pressures, positioning it well for growth when volumes rebound. Margins and earnings should recover as cost-saving programs ramp up, volume trends normalize, and valuation re-rates closer to historical levels, offering attractive upside for long-term investors.

Constellation Brands is a compelling long-term contrarian opportunity, supported by Warren Buffett's recent $2B investment via Berkshire Hathaway. This premium beer importer boasts high margins, strong cash flow, a sound balance sheet, and a resilient premium beer portfolio with pricing power and product innovation. Despite current industry headwinds and highly negative sentiment, STZ is undervalued, offering ~20% upside based on midpoint management guidance and compressed valuation multiples.

ROCHESTER, N.Y., Oct. 15, 2025 (GLOBE NEWSWIRE) -- Constellation Brands, Inc. (NYSE: STZ), a leading beverage alcohol company, announced today that it priced the public offering of $500.0 million aggregate principal amount of 4.950% Senior Notes due 2035 (the "notes") for a public offering price of 99.716% of the principal amount of the notes. The notes will be senior obligations that rank equally with all of Constellation's other senior unsecured indebtedness.

Constellation Brands (STZ) remains a Buy, supported by strong fundamentals, premium brand leadership, and long-term upside despite recent macro headwinds and weak stock performance. STZ's latest results showed resilient cash flow and improved equity from net debt reduction, with ongoing investments in Mexican beer operations and cost-saving initiatives. Macro factors such as more anticipated rate cuts and premiumization trends position STZ for future growth, while tariffs and consumer demand remain near-term risks.

RBC Capital Markets analysts believe Constellation Brands Inc (NYSE:STZ)'s earnings per share “aftermath was better than feared” but expect the numbers to be rangebound until the company's volumes gain momentum.   In a note to clients on Wednesday, the analysts called Constellation's overall quarter “solid” given the muted expectations and poor investor sentiment.

CNBC's Brandon Gomez joins 'Squawk on the Street' to discuss the latest earnings from Constellation Brands.

Constellation Brands (STZ) faces declining beer volumes, margin pressure, and challenging input costs, leading to a negative outlook for sales and earnings. STZ's Q2 results were better than feared, but both beer and wine segments showed year-over-year declines, with tariffs and divestitures further impacting performance. Despite aggressive share buybacks and a 3% dividend yield, STZ's earnings pressure and lack of growth limit upside, especially versus higher-yielding Treasuries.

Constellation Brands underwhelmed investors yesterday with its disappointing Q2 FY26 results. The company reported a bigger YoY contraction in sales than that seen in Q1 FY26, and the non-GAAP operating profit contracted YoY too, even as the operating margin remains strong. Despite multiple downgrades to the earnings outlook, the stock's forward P/E looks low, but it can be explained by the company's weakening fundamentals.

Shares of Constellation Brands Inc. rose after hours Monday after the beer and wine maker reported quarterly results that beat expectations and stuck with its full-year outlook, although management said higher prices and deportation fears continued to keep its large segment of Hispanic consumers from going out more frequently.

Constellation Brands posted a smaller-than-expected drop in second-quarter sales on Monday, aided by steady demand for beer, even as the company's key Hispanic consumers reel from the Trump administration's immigration policies.

Modelo owner Constellation Brands reported fiscal second-quarter earnings Monday, reiterating a lower full-year guidance due to macroeconomic headwinds. The company beat Wall Street's estimates for revenue and earnings per share.

Constellation Brands Inc (NYSE:STZ) reported financial results for the second quarter of fiscal 2026 after the market close on Monday. Here's a rundown of the report.

ROCHESTER, N.Y., Oct. 06, 2025 (GLOBE NEWSWIRE) -- Constellation Brands, Inc. (NYSE: STZ), a leading beverage alcohol company, reported today its second quarter fiscal 2026 financial results. A conference call to discuss the financial results and outlook will be hosted by President and Chief Executive Officer, Bill Newlands, and Chief Financial Officer, Garth Hankinson, on Tuesday, October 7, 2025 at 8:00 a.m. ET. Visit ir.cbrands.com to locate information for joining the conference call, or a live, listen-only webcast of the conference call.