Constellation Brands, Inc. (STZ) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Constellation Brands, Inc. (STZ) Consumer Business Overview

Constellation Brands is a leading player in the alcoholic beverage industry, boasting a diverse portfolio of beer, wine, and spirits. With a focus on premium brands and a strong distribution network, the company maintains a competitive edge in the consumer defensive sector.

What Is the Investment Thesis for STZ?

The company's focus on premiumization and innovation is expected to drive organic growth and expand margins. With a P/E ratio of 11.80 and a profit margin of 18.5%, STZ demonstrates solid profitability. A dividend yield of 2.76% provides an additional return for investors. Upcoming product launches and continued expansion in the hard seltzer and ready-to-drink cocktail categories represent potential growth catalysts. However, investors should be aware of potential risks related to changing consumer preferences and increased competition in the alcoholic beverage market.

Based on FMP financials and quantitative analysis

STZ Key Highlights

Market capitalization of $20.9B reflects Constellation Brands' significant presence in the alcoholic beverage industry.

• Profit margin of 18.5% indicates strong operational efficiency and pricing power.
• Gross margin of 51.7% highlights the company's ability to maintain profitability across its diverse product portfolio.
• Dividend yield of 2.76% provides a steady income stream for investors.
• Beta of 0.43 suggests lower volatility compared to the overall market, making it a relatively stable investment.

Who Are STZ's Competitors?

STZ is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are STZ's Key Strengths?

Strong brand portfolio with leading brands in beer, wine, and spirits.

• Extensive distribution network in the United States and key international markets.
• Proven track record of successful acquisitions and brand building.
• Focus on premiumization and innovation.

What Are STZ's Weaknesses?

Reliance on the U.S. market for a significant portion of its revenue.

• Exposure to changing consumer preferences and trends.
• Regulatory complexities in the alcoholic beverage industry.
• Potential impact from economic downturns on consumer spending.

What Could Drive STZ Stock Higher?

New product launches in the hard seltzer and ready-to-drink cocktail categories.

• Continued growth of Mexican beer brands, driven by marketing investments and distribution expansion.
• Premiumization of wine and spirits portfolio, leading to higher margins.
• Potential acquisitions of craft breweries or distilleries.
• Expansion in international markets, diversifying revenue streams.

What Are the Key Risks for STZ?

Insider selling — insiders were net sellers of roughly $2.5M recently.

• Increased competition from established players and new entrants in the alcoholic beverage market.
• Changing consumer preferences and trends, such as a shift away from traditional beer and wine.
• Regulatory changes and increased taxes on alcoholic beverages, impacting profitability.
• Economic downturns and reduced consumer spending on discretionary items.
• Supply chain disruptions and increased input costs.

What Are the Growth Opportunities for STZ?

• Expansion in the Hard Seltzer and Ready-to-Drink (RTD) Cocktail Market: The hard seltzer and RTD cocktail market is experiencing rapid growth, driven by changing consumer preferences and the demand for convenient and flavorful alcoholic beverages. Constellation Brands can leverage its existing brands and distribution network to capture a significant share of this market. The global hard seltzer market is projected to reach $10.92 billion by 2028, presenting a substantial growth opportunity for the company.
• Continued Growth of Mexican Beer Brands: Constellation Brands' Mexican beer brands, particularly Corona and Modelo, have consistently outperformed the market in recent years. The company can continue to drive growth by expanding distribution, increasing marketing investments, and introducing new product innovations within these brands. The increasing popularity of Mexican beer in the U.S. and other international markets provides a favorable backdrop for this growth strategy.
• Premiumization of Wine and Spirits Portfolio: Constellation Brands can further enhance its profitability by focusing on premiumization within its wine and spirits portfolio. This involves investing in higher-end brands, introducing new premium products, and optimizing pricing strategies. The trend towards premium alcoholic beverages is expected to continue, driven by consumers' willingness to pay more for higher-quality and more unique products.
• Strategic Acquisitions and Partnerships: Constellation Brands can pursue strategic acquisitions and partnerships to expand its product portfolio, enter new markets, and gain access to new technologies. The company has a track record of successful acquisitions, and it can continue to leverage this expertise to drive growth and create shareholder value. Potential targets include craft breweries, distilleries, and emerging beverage brands.
• International Expansion: While Constellation Brands has a presence in several international markets, there is significant potential to expand its global footprint further. The company can target high-growth markets in Asia, Latin America, and Europe, leveraging its strong brand portfolio and distribution capabilities. International expansion can diversify revenue streams and reduce reliance on the U.S. market.

What Are STZ's Competitive Advantages?

• Strong brand portfolio with iconic brands like Corona and Modelo.
• Extensive distribution network in the United States and other key markets.
• Established relationships with wholesale distributors and retailers.
• Scale and efficiency in production and distribution.
• Brand loyalty among consumers.

What Does STZ Do?

Founded in 1945 and headquartered in Victor, New York, Constellation Brands has evolved from a small wine producer to a global beverage powerhouse. The company's initial focus was on wine production, but it strategically expanded its portfolio to include beer and spirits through acquisitions and organic growth. Today, Constellation Brands is the largest beer importer in the U.S. and a leading producer and marketer of premium wine and spirits. Its beer portfolio is anchored by iconic Mexican brands such as Corona and Modelo, which have experienced significant growth in recent years. The wine portfolio includes well-known brands like Kim Crawford, Meiomi, and Robert Mondavi, catering to a wide range of consumer preferences. The spirits portfolio features brands like SVEDKA vodka and High West whiskey. Constellation Brands distributes its products through wholesale distributors, retailers, on-premise locations, and state alcohol beverage control agencies across the United States, Canada, Mexico, New Zealand, and Italy. The company's strategy focuses on building brand equity, driving innovation, and optimizing its supply chain to deliver sustainable growth and shareholder value.

What Products and Services Does STZ Offer?

• Produces and markets beer, wine, and spirits.
• Imports and sells beer brands like Corona and Modelo in the United States.
• Offers a diverse portfolio of wine brands, including Kim Crawford and Meiomi.
• Provides spirits under brands like SVEDKA vodka and High West whiskey.
• Distributes products through wholesale distributors, retailers, and on-premise locations.
• Operates in the United States, Canada, Mexico, New Zealand, and Italy.

How Does STZ Make Money?

• Generates revenue through the sale of beer, wine, and spirits.
• Focuses on building brand equity and driving consumer demand.
• Utilizes a distribution network to reach retail and on-premise customers.
• Invests in marketing and advertising to promote its brands.
• Manages its supply chain to ensure efficient production and distribution.

What Industry Does STZ Operate In?

The alcoholic beverage industry is characterized by evolving consumer preferences, increasing competition, and regulatory complexities. The market is witnessing a shift towards premium and craft beverages, as well as the growing popularity of ready-to-drink cocktails and hard seltzers. Constellation Brands is well-positioned to capitalize on these trends with its diverse portfolio of premium brands and its focus on innovation. The company faces competition from established players like Fomento Económico Mexicano, S.A.B. de C.V. (FMX) as well as smaller craft breweries and distilleries. The industry is also subject to regulations related to production, distribution, and marketing, which can impact profitability and growth.

Who Are STZ's Key Customers?

• Wholesale distributors
• Retailers (e.g., supermarkets, liquor stores)
• On-premise locations (e.g., bars, restaurants)
• State alcohol beverage control agencies
• Consumers of alcoholic beverages

Over the past six months, Constellation Brands, Inc. insiders filed 99 SEC Form 4 transactions — 53 sales and 46 purchases. On net that is roughly 64K shares acquired (about $2.5M) — insiders putting money in tends to read as conviction.

Quarterly Financial Performance: Constellation Brands, Inc.

Revenue for Constellation Brands, Inc. came in at $2.43B during Q1 FY2027, a 26.7% improvement versus the preceding quarter. The company recorded net income of $653.8M, with diluted EPS of $3.79. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Consumer Defensive. Across the four most recent quarters, STZ averaged $2.62 in diluted EPS.

STZ Valuation & Market Position

With a $20.9B market cap, Constellation Brands, Inc. sits in the large-cap segment of the market. Analyst price targets span from $132.00 to $186.00, with a consensus of $165.20. At the current price of $122.45, that implies approximately 35% upside potential. Relative to its peer group, STZ's quantitative score of 75/100 is above the peer average of 64/100.

Return on equity for Constellation Brands, Inc. stands at 23.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 8.3%, showing how much profit it generates from its asset base. STZ trades at a trailing price-to-earnings ratio of 11.80, below the Consumer Defensive sector average of ~27.60x. Its free cash flow yield is 8.8%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.91 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 8.7%, the inverse of the P/E and a quick read on earnings relative to price.

Constellation Brands, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 2.63 places it in the grey zone, a middle ground that warrants monitoring.

Constellation Brands, Inc. has beaten Wall Street's EPS estimate in 6 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 7.3% above estimates on average.

Company Profile

Constellation Brands, Inc. operates in the Beverages - Alcoholic industry within the Consumer Defensive sector. It is headquartered in Rochester, US. The company is led by CEO Nicholas Fink. STZ has traded publicly since 1992.

STZ Financials

Next earnings report: Oct 5, 2026

STZ Latest News

STZ Analyst Consensus

STZ MoonshotScore

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