Constellation Brands: Tariffs Remain An Issue Post-Court Ruling
Constellation Brands, Inc. STZ appears to be seeing tangible benefits from its premium-focused strategy, even in a challenging macro backdrop. In third-quarter fiscal 2026, the company delivered an earnings beat despite year-over-year revenue pressure, underscoring the resilience of its high-end beer portfolio.
Constellation Brands (STZ) stock has decreased by 8.0% over the last day and is presently trading at $149.30, extending its recent underperformance amid broader volatility in consumer staples. The selloff follows continued investor concerns around slowing beer volume growth, margin pressures, and a softer outlook for discretionary alcohol spending in a higher interest rate environment.
Constellation Brands (STZ) reported earnings 30 days ago. What's next for the stock?
Constellation Brands is holding above key moving averages after a bullish breakout, with technical signals pointing toward a continuation higher if support levels remain intact.
STZ faces a slowing U.S. beer market, but brand strength, pricing discipline and retail execution are helping it outperform peers and gain share.
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.
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.
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%.