Victor, New York-based Constellation Brands, Inc. (STZ) is one of the largest beer companies and a leading, high-end wine company in the United States. With a market cap of $31.8 billion, Constellation Brands’ beverages are marketed in over 100 countries around the world.
Constellation Brands has significantly underperformed the broader market over the past year. STZ stock has plummeted 28.4% over the past 52 weeks and 20.4% in 2025, compared to the S&P 500 Index’s ($SPX) 20.7% surge over the past year and 2.2% gains in 2025.
Narrowing the focus, STZ has notably underperformed the First Trust Nasdaq Food & Beverage ETF’s (FTXG) 2% dip over the past year and 1.4% gains in 2025.
Constellation Brands’ stock plunged 17.1% after the release of its disappointing Q3 results on Jan. 10. While its net sales inched up by a modest 2.8% compared to the year-ago quarter to $8 billion, it missed the Street’s topline expectations by a notable 3.2%. Meanwhile, its SG&A expenses observed a significant surge and its non-GAAP earnings of $3.25 per share missed the consensus estimates by 2.7%, which unsettled investor confidence. On a positive note, the company has notably increased its year-to-date stock repurchases which signal the company’s confidence in its long-term prospects.
For the current fiscal 2025, ending this month, analysts expect STZ to report an 11.9% year-over-year growth in non-GAAP EPS to $13.50. However, the company has a mixed earnings surprise history. While it has surpassed the Street’s bottom-line expectations thrice over the past four quarters, it has missed the estimate on one other occasion.
Among the 22 analysts covering the STZ stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy,” three “Moderate Buy,” and nine “Hold” ratings.
This configuration is considerably less bullish than three months ago when 15 analysts gave “Strong Buy” recommendations and the stock had a consensus “Strong Buy” rating overall.
On Feb. 3, RBC Capital analyst Nik Modi reiterated a “Buy” rating on STZ, while setting a price target of $293.
STZ’s mean price target of $241.78 represents a 37.4% premium to current price levels, while its street-high target of $300 indicates a staggering 70.5% upside potential.
