Jim Cramer says the recent drop in beverage giant Constellation Brands Inc. (NYSE:STZ) has made the stock a “steal.” Despite a cautious consumer outlook following its recent earnings beat, the prominent stock picker sees the pullback as a prime buying opportunity for investors.
Spotting a Bottom in Beer
Constellation Brands recently reported fiscal first-quarter adjusted earnings of $3.43 per share, topping Wall Street expectations of $3.25. The beat was driven by 1.8% shipment growth and strong margins in its core beer business, which includes hit brands like Modelo Especial and Corona Extra.
However, cautious management commentary regarding an uneven consumer spending environment prompted a sell-off. Furthermore, it was revealed that Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK) had slashed its stake in the company by roughly 95%.
Cramer, however, views the sell-off as a drastic overreaction. While acknowledging the recent negative sentiment around spirits, he argued that Constellation’s latest report “was one of the first that even remotely smacked of a bottom, especially in beer.”
“I think there was enough here to say that we got a bottom in earnings,” Cramer noted. Pointing to the severity of the market’s reaction, he added, “but this historic thin trader fell nearly $7 today, 130 and change.”
Read Also: Corona Parent Constellation Brands Faces Summer Beer Demand Test After Earnings Beat: Analyst
Capitalizing on Collateral Damage
With the stock’s valuation compressed, Cramer is explicitly bullish on the Corona and Modelo maker. “I think it’s a steal down here,” Cramer emphasized, contrasting the current valuation with past highs.
“I remember when it was double that, especially given the fact that the stock now has a 3% yield. “Cramer also brushed off potential short-term headwinds regarding the ongoing World Cup. While Constellation has leaned into World Cup marketing, some investors have worried about the impact of Mexico’s early exit on sales of Mexican-imported beer.
Cramer quickly dismissed this headwind, stating, “And no, I am not worried about World Cup sales being down because Mexico lost in the World Cup. Hey, by the way, that defeat is now in the stock today.”
Ultimately, Cramer views Constellation Brands as “collateral damage” in a broader market rotation, calling it a “great place to do some buying.”
How Has STZ Performed In 2026?
Constellation Brands shares have declined 5.28% year-to-date, 7.26% over the last month, and 24.16% over the year. It closed 4.94% lower at $130.68 apiece on Monday, and it was up 0.24% in overnight trading.
Benzinga’s Edge Stock Rankings indicate that STZ maintains a weak price trend in the long, short, and medium terms, with a good growth score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: T. Schneider / Shutterstock.com
