The owner of Corona and Modelo expects beer sales to fall 2% to 4% in the fiscal year.
Constellation Brands (STZ 1.79%), one of the largest producers of beer, wine, and spirits in America, was once a stable blue chip investment. But over the past 12 months, its stock declined nearly 30% as the S&P 500 rose 17%.
Warren Buffett and his team at Berkshire Hathaway have long invested in dividend stocks. In today's market environment, the average dividend yield is 1.2%.
The consumer staples sector has entered the chat. Over the past five trading sessions, while tech sells off, the market's been rotating away from growth and into defensive sectors, which were previously left out of the S&P 500's recovery.
STZ offers compelling value at a 13.9 forward PE and 2.3% yield, trading well below historical and peer valuations. Despite recent declines in Wine & Spirits, STZ's Beer segment—led by Modelo and Pacifico—continues to gain U.S. market share. STZ maintains a solid balance sheet, investment-grade credit, disciplined buybacks, and a well-covered, growing dividend.
Constellation Brands is a premium beverage leader with resilient cash flow and strategic investments in growth. Despite short-term headwinds from tariffs and weak consumer demand, I see long-term upside as investments pay off and macro conditions improve. Valuation analysis suggests a decent upside from current levels, supported by buybacks, dividend yield, and the potential for higher free cash flow post-CAPEX cycle.
Wall Street analysts recently boosted their price targets on one of Warren Buffett's multi-billion-dollar stock picks, Constellation Brands NYSE: STZ. According to Berkshire Hathaway's NYSE: BRK.B latest 13F filing, it owned just over 12 million shares of Constellation as of March 31.
President Donald Trump's hardline immigration policy is still hurting Constellation Brands' beer sales as Hispanic shoppers pull back their spending. The brewer, which owns Modelo, Corona and Pacifico, says that roughly half of its beer sales come from U.S. Latinos.
Constellation Brands, Inc. (NYSE:STZ ) Q1 2026 Earnings Conference Call July 2, 2025 10:30 AM ET Company Participants Garth Hankinson - Executive VP & CFO Joseph Suarez - Senior VP of Investor Relations William A. Newlands - President, CEO & Director Conference Call Participants Andrea Faria Teixeira - JPMorgan Chase & Co, Research Division Bonnie Lee Herzog - Goldman Sachs Group, Inc., Research Division Christopher Michael Carey - Wells Fargo Securities, LLC, Research Division Dara Warren Mohsenian - Morgan Stanley, Research Division Filippo Falorni - Citigroup Inc., Research Division Kaumil S.
STZ's Q1 earnings and sales miss as the beer, and wine and spirits segments' shipment volumes fall amid soft consumer demand.
CNBC's Brandon Gomez joins 'Squawk on the Street' with the latest earnings number from Constellation Brands.
Shares of Constellation Brands Inc (NYSE:STZ) are 2.2% higher to trade at $168.52 at last check, reversing premarket losses as they brush off a fiscal first-quarter earnings and revenue miss.