Valued at $48.5 billion by market cap, Constellation Brands, Inc. (STZ) is a leading producer and marketer of beer, wine, and spirits. Based in Victor, New York, the company operates globally, serving wholesale distributors, retailers, and on-premise outlets across multiple countries.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Constellation Brands fits this criterion perfectly, boasting a market cap that exceeds this threshold. Constellation Brands is celebrated for its diverse portfolio, featuring top-tier beer brands such as Corona and Modelo. Moreover, the company holds a dominant position in the U.S. beer import market and has made significant investments in the burgeoning cannabis industry.
Despite that, Constellation Brands has slipped 3.5% from its 52-week high of $274.87 reached in April. Shares of STZ have dipped 1.2% over the past three months, which is less pronounced than the broader Dynamic Food & Beverage Invesco ETF's (PBJ) decline of 5.6% during the same period.
Longer term, STZ's shares have increased 9.7% on a YTD basis, surpassing the marginal rise of the PBJ. Over the past 52 weeks, Constellation Brands has surged 9.4%, compared to PBJ's 1% gain over the same period.
STZ has been trading above both its 50-day and 200-day moving averages since June, suggesting a bullish price trend.
Constellation Brands' outperformance can be attributed to its strong financial performance, driven by robust growth in its core beer segment and strategic focus on premiumization and innovation within its wine and spirits portfolio. Moreover, the stock surged on Apr. 11 after its better-than-expected Q4 earnings results. The positive market sentiment was further fueled by Constellation Brands' announcement of an upbeat profit forecast for fiscal 2025, surpassing Wall Street's estimates.
Also, Constellation Brands has outperformed its rival, The Boston Beer Company, Inc. (SAM), with SAM experiencing declines of 13.8% on a YTD basis and 4.7% over the past 52 weeks.
Due to the stock's impressive gains, analysts are optimistic about the stock's prospects. The stock has a consensus rating of “Strong Buy” from the 20 analysts covering it, and the mean price target of $299.70 suggests a premium of 13% to current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
