Stock of the Day

January 9, 2023

Constellation Brands (STZ)

$172.14
+$1.54 (+0.9%)
Market Cap: $30.77B

About Constellation Brands

Constellation Brands, Inc., together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company provides beer primarily under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Corona Premier, Corona Refresca, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands. It also offers wine under the Cook's California Champagne, Kim Crawford, Meiomi, Mount Veeder, Ruffino, SIMI, My Favorite Neighbor, Robert Mondavi Winery, Schrader, and The Prisoner Wine Company brands; and spirits under the Casa Noble, Copper & Kings, High West, Mi CAMPO, Nelson's Green Brier, and SVEDKA brands. The company provides its products to wholesale distributors, retailers, on-premise locations, and state alcohol beverage control agencies. Constellation Brands, Inc. was founded in 1945 and is headquartered in Victor, New York.

Constellation Brands Bull Case

Here are some ways that investors could benefit from investing in Constellation Brands, Inc.:

  • Constellation Brands, Inc. recently reported a quarterly revenue increase of 1.2% year-over-year, indicating a stable growth trajectory in its operations.
  • The company has a strong return on equity of 26.55%, which suggests effective management and profitability relative to shareholder equity.
  • With a current stock price around $177.67, it presents a potential buying opportunity for investors looking for value in the beverage sector.
  • Constellation Brands, Inc. has a history of increasing dividends, with a recent quarterly dividend of $1.02, reflecting a commitment to returning value to shareholders.
  • Analysts have a consensus rating of "Moderate Buy" for the stock, with an average target price of approximately $225.74, suggesting potential upside for investors.

Constellation Brands Bear Case

Investors should be bearish about investing in Constellation Brands, Inc. for these reasons:

  • The stock has experienced a decline from its 52-week high of $265.70, which may indicate volatility and uncertainty in the market.
  • Constellation Brands, Inc. has a relatively high price-to-earnings (P/E) ratio of 47.76, suggesting that the stock may be overvalued compared to its earnings.
  • Recent insider selling, including a significant transaction by an executive vice president, could raise concerns about the company's future prospects.
  • The company has a debt-to-equity ratio of 1.26, indicating a reliance on debt financing, which can be risky in fluctuating market conditions.
  • Analysts have adjusted their price targets downward, with some reducing their estimates significantly, which may reflect a cautious outlook on the company's performance.
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