Buffett Loves Constellation Brands Enough To Double His Position; Should You Love It Too?
Constellation Brands is an industry leader under threats including declining alcoholic beverage sales, tariffs, economic risks, and immigration policy. Buffett (or a lieutenant) bought a position in STZ in Q4 2024 and doubled it in Q1 2025 seeing a solid value investment cheap because of temporary risks. Brand power and good management were likely major factors as well as high profitability and high end products likely to do well despite current challenges.
Beverage Stock Surges as Berkshire Doubles Stake
Shares of Constellation Brands Inc (NYSE:STZ) are up 3.4% at $197.18 at last glance, after Warren Buffett's Berkshire Hathaway (BRK.A) hiked its stake in the beverage company.
Constellation Brands, Inc. (STZ) Goldman Sachs Global Staples Forum (Transcript)
Constellation Brands, Inc. (NYSE:STZ ) Goldman Sachs Global Staples Forum Call May 13, 2025 11:40 AM ET Company Participants Garth Hankinson - Chief Financial Officer Jim Sabia - Executive Vice President & President, Beer Division Conference Call Participants Bonnie Herzog - Goldman Sachs Bonnie Herzog Okay. Hi, everyone, and thank you for joining us today.
Constellation Brands: There's Still Room To Run, Even With Tariffs
Constellation Brands was initially rated a Strong Buy due to undervaluation and strong fundamentals; now downgraded to Buy as growth expectations have lowered and the stock rebounded, but potential remains. Despite tariffs and reduced growth forecasts, Constellation maintains strong margins and cash flow, with potential upside if tariffs are lifted. The company's beer brands remain strong, and the Wine and Spirits segment is improving with a focus on premium products.
Why Is Constellation Brands (STZ) Up 3.6% Since Last Earnings Report?
Constellation Brands (STZ) reported earnings 30 days ago. What's next for the stock?
Constellation Brands: Reshaping For Premiumization, Initiate With Strong Buy
Initiate coverage on Constellation Brands with a Strong Buy rating and $246.93 price target, driven by premiumization and portfolio transformation. Expect a sharper-than-consensus topline snapback, with FY26E revenue at $9.70B and FY27E at $9.99B, driven by strategic wine asset divestitures and strong beer segment performance. Beer segment leadership, led by Modelo and Pacifico, ensures pricing power and margin resilience, while premium wine & spirits portfolio stabilizes at higher margins.
Succeeding With This Stock May Require Investors to Out-Buffett Warren Buffett. Here's Why.
Warren Buffett's Berkshire Hathaway sold more stock than it bought in 2024, so it likely raised some eyebrows when the company revealed its position in Constellation Brands (STZ -1.10%).
Where Will Constellation Brands Be in 3 Years?
Constellation Brands (STZ 0.50%) is facing pressure on its beer sales from President Donald Trump's policies, coupled with what has already been a slower environment for its wine and spirits brands. Given these factors, let's break down why it's hard to be overly bullish on Constellation's performance over the next three years.
Warren Buffett's Favorite Alcohol Stock Just Raised Its Dividend, But That Could Be a Problem
Although a lot of attention is being paid to Warren Buffett's massive $334 billion cash reserve and that he has been a net seller of stocks, it doesn't mean he hasn't been buying any.
Constellation Brands, Inc. (STZ) Q4 2025 Earnings Call Transcript
Constellation Brands, Inc. (NYSE:STZ ) Q4 2025 Earnings Conference Call April 10, 2025 10:30 AM ET Company Participants Joseph Suarez - VP, IR Bill Newlands - CEO Garth Hankinson - CFO Conference Call Participants Lauren Lieberman - Barclays Nik Modi - RBC Capital Markets Bonnie Herzog - Goldman Sachs Rob Ottenstein - Evercore ISI Chris Carey - Wells Fargo Securities Nadine Sarwat - Bernstein Peter Grom - UBS Bill Kirk - ROTH MKM Andrew Strelzik - BMO Capital Markets Gerald Pascarelli - Needham & Company Dara Mohsenian - Morgan Stanley Kaumil Gajrawala - Jefferies Andrea Teixeira - JPMorgan Carlos Laboy - HSBC Filippo Falorni - Citi Bryan Spillane - Bank of America Steve Powers - Deutsche Bank Kevin Grundy - BNP Paribas Robert Moskow - TD Cowen Michael Lavery - Piper Sandler Operator Greetings, and welcome to the Constellation Brands Q4 Fiscal Year 2025 Earnings Call. At this time, all participants are in a listen-only mode.
STZ Q4 Earnings & Sales Beat, Stock Dips 3.6% on Cautious FY26 View
Constellation Brands' Q4 results show steady beer sales, and stronger wine & spirits. Focus remains on distribution gains, innovation and marketing in beer.
Trump's immigration policy is weighing on beer sales, Constellation Brands CEO says
Hispanic consumers are buying less beer because of concerns related to President Donald Trump's immigration policy, Constellation Brands CEO Bill Newlands said. Roughly half of Constellation's beer sales come from Hispanic consumers.
