Stock of the Day

December 9, 2025

Constellation Brands (STZ)

$131.27
+$1.69 (+1.3%)
Market Cap: $22.42B

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 beat earnings expectations, reporting $3.74 in earnings per share for the quarter compared to the analyst consensus of $3.62, while also exceeding revenue estimates with $2.63 billion in sales, demonstrating strong operational performance and profitability with a net margin of 19.57%.
  • The company offers an attractive dividend yield of 3.24% based on the current stock price of $127.38, providing a steady income stream for investors, supported by a sustainable payout ratio of 36.95% which indicates the company retains a significant portion of its earnings for reinvestment.
  • With a low beta of 0.44, Constellation Brands, Inc. exhibits lower volatility compared to the broader market, making it a potentially stable defensive holding for investors seeking to reduce portfolio risk during periods of market uncertainty.
  • The stock is currently trading at a price-to-earnings ratio of 10.48, which is relatively low for a consumer staples company, suggesting that the market may be undervaluing the firm's earnings power relative to its peers, especially given the recent earnings beat and revenue growth of 6.1% year-over-year.
  • Recent strategic moves, such as the acquisition of the spirit-based ready-to-drink brand SpikedAde, indicate the company is actively diversifying its portfolio and targeting newer drinking occasions, which could drive future growth in a stagnant US beer market.

Constellation Brands Bear Case

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

  • The stock has experienced a significant decline, trading at $127.38 which is well below its 52-week high of $168.60, reflecting a broader market skepticism about the company's growth trajectory and a 42% slide over the past three years.
  • Analyst sentiment has shifted negatively, with the consensus rating downgraded to "Hold" and the average price target reduced to $153.09 from higher levels earlier in the year, indicating that many research firms see limited upside potential in the near term.
  • Several major financial institutions, including Jefferies, Wells Fargo, and Bank of America, have recently lowered their price targets on Constellation Brands, Inc., with Jefferies cutting its target from $147.00 to $135.00 and Wells Fargo reducing its target from $170.00 to $140.00, signaling concerns about future earnings growth.
  • The company faces challenges in the US beer market, which is described as stagnant, and while beer growth and buybacks have masked some issues, the underlying demand for core beer products remains a concern for long-term revenue stability.
  • Short interest in the stock has increased, with shares shorted rising to 9,633,960 as of September 30, 2026, representing a 13.12% month-over-month increase, suggesting that a growing number of traders are betting against the stock's future performance.

What’s on the Thanksgiving Table? A Stock Pick for Every Course

Written By Chris Markoch on 11/18/2025

Roasted turkey and fall vegetables on a festive table highlight rising holiday food demand supporting Q4 consumer-staples stocks.

Every year, around this time, consumers hear about how much their Thanksgiving dinner will cost compared to the previous year. Whether that number is higher or lower impacts our wallets. 

Here’s the bad news. Over the last month, food prices have begun to rise slightly. That may be coming as producers pass some tariff-related costs on to the consumer. It may also reflect the impact of the Federal Reserve’s rate-cutting cycle that began in September.

But for investors, that data could be a buy signal for the right stock. Remember, there’s a company behind each of these products. For publicly traded companies, higher prices could lift their earnings and their stock prices. That data won’t be reported until 2026, which is why now is the time to consider adding these stocks to your portfolio. 

Seaboard Corporation Will Be the Star of Many Meals

Seabord Corp. (NYSEAMERICAN: SEB) is the parent company of the Butterball turkey, "the best known and most loved brand of turkey" in America, according to a 2023 survey.

Turkey remains the main course at Thanksgiving dinner for the vast majority of U.S. households. Throw in the Christmas and New Year’s holidays, and it’s easy to understand why turkey demand spikes in the last quarter of the year.

SEB stock is up more than 65% this year. That's an outlier compared to its h

istory over any length of time. Seaboard has a long history of steadily increasing its share price instead of splitting, which makes the nominal price high at over $4,000, which could deter many investors.

However, the stock trades at just 9x earnings and its price-to-sales and price-to-book ratios also point to its value compared to consumer staples competitors. 

The Campbell’s Company: A Perfect Side Dish for Value Investors

According to Campbell’s (NASDAQ: CPB) “State of the Sides” report for 2025, 44% of respondents cited the green bean casserole as the most iconic Thanksgiving side dish.

Campbell’s plays a key role in its creation with its Cream of Mushroom soup.

However, Campbell's, formerly known as The Campbell Soup Company, has expanded beyond soup to include Pace salsas and dips, Prego pasta sauces, Pepperidge Farm baked snacks, and Goldfish crackers. That means the stock isn’t as niche as many investors may think. 

Better still, CPB stock is down 26% in 2025, but the stock chart appears to be confirming a double bottom that could signal a bullish reversal, propelling the stock into 2026. In addition, analysts have assigned the stock a $34.59 price target, implying nearly 12% upside potential.

General Mills Is the Baker’s Best Friend

Baking season is upon us. That means that many products from General Mills Inc. (NYSE: GIS) will be entering homes.

General Mills is the parent company of iconic brands such as Pillsbury, Betty Crocker, and Green Giant. Pies, dinner rolls, stuffing—not to mention all of those Christmas cookies—typically lead to a surge in sales of baking mixes and pie crusts around this time of the year.

Like many consumer staples companies, GIS stock has been beaten down, with a year-to-date decline of approximately 25%. 

However, analysts seem to be saying enough is enough. The consensus price target of $55.82 is almost 18% above the current price. Additionally, at 10x earnings, the stock appears poised to generate substantial returns for opportunistic investors. 

McCormick & Company Can Spice Up a Portfolio

Even if investors aren’t interested in owning consumer staples stocks for the long haul, there’s a simple reason to own McCormick & Company (NYSE: MKC) at this time of year: the current quarter is historically the company’s strongest quarter in terms of revenue.

Millions of consumers are about to do their spice inventory and realize it’s time to restock. That means McCormick, which holds its pricing value even when compared to house brands. 

MKC stock has been in a five-year retreat, which has wiped out most of its pandemic-fueled gains. However, at 21x earnings, the stock appears attractively valued. Analysts seem to agree, assigning MKC a consensus price target of $78.22, reflecting a potential 21% upside. 

Plus, investors get a stable dividend that yields 2.79% and has increased for 38 consecutive years.

Constellation Brands Is the Life of the Party

Alcohol and holidays go together like peanut butter and jelly. But it has been a rough few years for wine and spirit stocks. Many analysts believe consumer tastes are irreversibly changing, while others believe macroeconomic conditions are driving down demand.

However, Constellation Brands Inc. (NYSE: STZ) is a best-in-class stock that could be a savvy seasonal play. Constellation is the parent company of the Robert Mondavi wine label as well as Modelo beer.

STZ stock is down over 40% this year, but analysts give the stock a consensus price target of $186.44, over 43% above its current price. Plus, the stock trades for just 9.6x forward earnings, meaning the valuation won’t give you a hangover.

Recent News