Constellation Brands, Inc. (STZ), with a market capitalization of approximately $23.2 billion, is a leading international producer and marketer of beer, wine, and spirits. The Rochester, New York-based company’s portfolio includes Corona, Modelo, Pacifico, and Victoria beers, along with premium wine and craft spirits brands. The company operates across the U.S., Mexico, New Zealand, and Italy.
Shares of the beverage alcohol giant have considerably underperformed the broader market over the past year. STZ has declined 17.9% over this period, while the broader S&P 500 Index ($SPX) has advanced 18.3%. On a year-to-date basis, STZ has also continued to underperform, declining marginally, compared with the index’s 11.8% gain over the same period.
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Narrowing the comparison, STZ has also underperformed the First Trust Nasdaq Food & Beverage ETF (FTXG), which has gained 2.5% over the past year and 12.8% on a YTD basis.
www.barchart.com On June 30, Constellation Brands reported its Q1 FY2027 earnings, with shares dipping marginally despite the company beating analyst estimates on both revenue and earnings. Net sales fell 3.3% to $2.43 billion, primarily reflecting the impact of prior-year wine divestitures, while the Beer segment remained the key growth driver, with net sales rising 2%. Comparable EPS increased 6.5% to $3.43.
Constellation Brands affirmed its fiscal 2027 comparable EPS guidance of $11.2 to $11.9. The company expects enterprise organic net sales to range from a 1% decline to 1% growth, with an operating margin of 32% to 33%. It also reaffirmed its free cash flow guidance of $1.6 billion to $1.7 billion.
For the current fiscal year ending in February 2027, analysts expect STZ’s diluted EPS to rise marginally to $11.84. STZ has surpassed consensus EPS estimates in each of the past four quarters, which is impressive.
Among the 24 analysts covering STZ stock, the consensus rating is “Moderate Buy.” The rating is based on 10 “Strong Buy” ratings, three “Moderate Buy” ratings, nine “Hold” ratings, one “Moderate Sell,” and one “Strong Sell.”
www.barchart.com STZ’s analyst configuration is more bearish than it was two months ago, when the stock had 11 “Strong Buy” recommendations.
On July 2, Needham analyst Gerald Pascarelli maintained a “Buy” rating on Constellation Brands with a $185 price target, signaling continued confidence in the stock.
The mean price target of $169.48 implies a 23.2% upside from STZ’s current share price, while the Street-high target of $209 suggests a potential upside of 51.9%.
On the date of publication, Kritika Sarmah 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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