The STZ stock faces pressure from slowing beer sales and margin concerns, even as premium brands and expansion plans offer long-term hope.
Constellation Brands completes sale to The Wine Group, streamlining its wine and spirits portfolio. Its outlook for fiscal 2026, 2027 and 2028 is unchanged post-transaction.
Bill Stone, Glenview Trust Company chief investment officer, joins 'The Exchange' to discuss the tariff trade, opportunities in economic downturns and the pharma sector.
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.
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. (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 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.
Constellation Brands (STZ) reported earnings 30 days ago. What's next for the stock?
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.
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%).
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.
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.