Constellation Brands

STZ

Market cap $26.6B

Constellation Brands, Inc. faces declining revenues, significant debt, and secular headwinds in alcohol consumption, raising concerns of a value trap. Q3 2026 results beat low expectations, but revenues fell 9.8% YoY, and full-year guidance was lowered, with beer and wine/spirits sales both expected to decline. STZ trades at nearly 13x 2026 earnings, but a persistent no-growth outlook and high leverage limit upside; short sellers anticipate further multiple compression.

Constellation Brands is currently an undervalued Consumer Staples giant. It's seeing stabilizing volumes and has a solid growth runway through increased distribution and growing brands. Investors could see potentially strong total returns from the current depressed share price valuation and from dividends and buybacks.

Constellation Brands is reiterated as a Buy following a double-beat Q3 FY26 earnings report, despite ongoing macro headwinds. STZ's premium brand portfolio and strong financials support long-term upside, even as near-term consumer weakness and political risks persist. Management lowered FY26 EPS guidance but maintains a $1.35B FCF outlook, with significant shareholder returns through dividends and buybacks.

Constellation Brands, Inc. reported a double beat in Q3. Revenues declined less than expected, and margins were very resilient. STZ gained market share. The focus is on a weak alcoholic beverage industry. A secular decline in consumption continues to weigh on STZ, making capacity investment commitments concerning. I estimate STZ stock to have a fair value of $157.6.

Here are some of the major companies whose stocks moved on the week's news.

After a disastrous 2025, shares of beer giant Constellation Brands NYSE: STZ are starting 2026 off on a very positive note. To the chagrin of Berkshire Hathaway NYSE: BRK.B, Constellation Brands delivered a total return of -36% last year.

The Corona distributor posted better-than-expected results in its third-quarter earnings report. Sales and profits still fell.

Shares of beverage company Constellation Brands (NYSE: STZ) are trading higher Thursday after the company beat third-quarter analyst estimates for revenue and earnings per share. An analyst sees the strong results as a good start to 2026 for several reasons.

Constellation Brands, Inc. (STZ) Q3 2026 Earnings Call Transcript

Constellation Brands Inc (NYSE:STZ) shares added more than 4% after the global alcohol producer and marketer's fiscal third quarter earnings topped analyst expectations despite declines in sales and operating income. The company posted net sales of $2.22 billion, down 10% from the prior year, while comparable net sales fell 2%.