Constellation Brands Faces Tough Times as Stock Takes a Hit
Victor, New York-based Constellation Brands, Inc. (STZ) stands among the largest beer companies and is a notable player in the high-end wine market in the United States. With a market capitalization of $31.8 billion, Constellation Brands’ beverages are sold in more than 100 countries worldwide.
STZ Stock Underwhelms Amid Market Gains
Over the last year, Constellation Brands has struggled to keep pace with the broader market. STZ shares have dropped 28.4% in the past 52 weeks, along with a 20.4% decline in 2025, while the S&P 500 Index ($SPX) has surged by 20.7% over the same timeframe and gained 2.2% this year.
When examining STZ performance compared to the First Trust Nasdaq Food & Beverage ETF (FTXG), the contrast is even starker. The ETF has seen a 2% dip in the past year and a modest 1.4% gain in 2025.
Disappointing Earnings Round and Investor Reactions
Constellation Brands’ stock plunged 17.1% following disappointing Q3 results released on January 10. The company reported a modest 2.8% year-over-year increase in net sales to $8 billion, but missed analysts’ expectations for revenue by 3.2%. Additionally, selling, general, and administrative (SG&A) expenses rose significantly. Its non-GAAP earnings of $3.25 per share fell short of the consensus estimates by 2.7%, which shook investor confidence. On a brighter note, the company has significantly ramped up its stock repurchases, indicating its long-term optimism.
Looking ahead to fiscal year 2025, analysts forecast an 11.9% year-over-year growth in non-GAAP EPS to $13.50. However, the company’s track record shows mixed earnings results; it has beaten expectations three out of the last four quarters but missed once.
Analysts’ Views Shift on Constellation Brands
Currently, the consensus rating among the 22 analysts tracking STZ stock is a “Moderate Buy.” This is composed of 10 “Strong Buy,” three “Moderate Buy,” and nine “Hold” ratings. This outlook is notably less optimistic than three months ago, when 15 analysts issued “Strong Buy” recommendations and the consensus rating was a full “Strong Buy.”
Notably, on February 3, RBC Capital analyst Nik Modi maintained a “Buy” rating on STZ, setting a price target of $293. The mean price target for STZ is $241.78, suggesting a 37.4% upside from current levels, while the highest estimate of $300 indicates an impressive 70.5% potential increase.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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