Valued at a market cap of $25.8 billion, Constellation Brands, Inc. (STZ) is a leading beverage alcohol company that produces, imports, markets, and sells beer, wine, and spirits. The Rochester, New York-based company is best known for iconic names like Corona, Modelo, Robert Mondavi, and Svedka Vodka.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and STZ fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the beverages - brewers industry. Through its innovation-driven strategy, strong distribution network, and targeted investments, Constellation Brands continues to capture consumer demand for premium and lifestyle-focused alcoholic beverages.
Despite its notable strength, this alcohol company has dipped 44% from its 52-week high of $261.06, reached on Sep. 30, 2024. Moreover, shares of STZ have declined 14.5% over the past three months, underperforming the First Trust Nasdaq Food & Beverage ETF’s (FTXG) 1.3% loss during the same time frame.
In the longer term, STZ has fallen 41.7% over the past 52 weeks, considerably lagging behind FTXG's 13.9% downtick over the same time period. Moreover, on a YTD basis, shares of STZ are down 33.8%, compared to FTXG’s 3.6% drop.
To confirm its bearish trend, STZ has been trading below its 200-day moving average since early October 2024, and has remained below its 50-day moving average since late May, with slight fluctuations.
On Jul. 1, Constellation Brands released its Q1 2026 results. The company’s revenue declined 5.5% year-over-year to $2.5 billion, falling short of consensus estimates by 1.9%. Moreover, its adjusted EPS came in at $3.22, down 9.8% from the prior-year quarter and 3.6% below Wall Street estimates. However, despite delivering a weaker-than-expected performance, its shares surged 4.5% in the following trading session.
STZ has also considerably lagged behind its rival, Anheuser-Busch InBev SA/NV (BUD), which declined 5.4% over the past 52 weeks and gained 18.7% on a YTD basis.
Despite STZ’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 23 analysts covering it, and the mean price target of $181.43 suggests a 24.2% premium to its current price levels.
On the date of publication, Neharika Jain 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.
