With a market cap of $43.54 billion, Constellation Brands, Inc. (STZ) is a leading producer and marketer of beer, wine, and spirits, headquartered in Victor, New York. The company is renowned for its premium beverage portfolio, which includes iconic brands such as Corona, Modelo, and Robert Mondavi.
STZ has underperformed the broader market over the last year. The stock has declined 8.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 24.3%. In 2024, the stock has declined 1.6%, compared to SPX's 17.2% gains on a YTD basis.
Narrowing the focus, STZ also underperformed the Invesco Food & Beverage ETF (PBJ). The exchange-traded fund has gained 2.8% on a YTD basis.
STZ reported Q1 earnings on Jul. 3. The company reported a profit of $877 million, or $3.57 per share, surpassing Wall Street expectations of $3.46 per share. Also, the company's revenue of $2.86 billion surpassed analysts’ expectations of $2.66 billion. STZ expects full-year earnings between $13.50 and $13.80 per share. Following the release of its results, the stock declined 3.3%.
For the current fiscal year, ending in February 2025, analysts expect STZ’s EPS to grow 12.4% to $13.55 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in all four quarters.
Among the 19 analysts covering STZ stock, the consensus rating is a “Strong Buy.” That’s based on 16 “Strong Buy” ratings, one “Moderate Buy,” and two “Holds.”
This configuration is less bullish than a month ago, with 17 analysts suggesting a “Strong Buy.”
On Jul. 31, RBC Capital analyst Nik Modi maintained a “Buy” rating on Constellation Brands, with a price target of $308, which indicates a 29.4% upside from the current levels.
The mean price target of $300.21 represents a 26.2% premium to STZ’s current price levels. The Street-high price target of $325 suggests an upside potential of 36.6%.
On the date of publication, Rashmi Kumari 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.
