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, Inc.

Constellation Brands, Inc. STZ is scheduled to release third-quarter fiscal 2026 results on Jan. 7, 2026. The alcoholic beverage bigwig is expected to have recorded declines in its top and bottom lines in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s fiscal third-quarter earnings is pegged at $2.66 per share, indicating an 18.2% decline from the year-ago quarter’s actual. The consensus mark has moved down by a penny in the past 30 days. The consensus estimate for revenues is pegged at $2.2 billion, suggesting an 11.6% decline from the prior-year quarter’s reported figure.
In the last reported quarter, the alcohol behemoth delivered an earnings surprise of 7.7%. Its bottom line beat estimates by 4.2%, on average, in the trailing four quarters.
Constellation Brands Inc Price and EPS Surprise
What the Zacks Model Says for STZ Stock
Our proven model does not conclusively predict an earnings beat for Constellation Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Constellation Brands currently has an Earnings ESP of +3.58% and a Zacks Rank #4 (Sell).
Key Factors to Note Before STZ’s Q3 Results
Constellation Brands’ third-quarter fiscal 2026 results are expected to reflect the impacts of the continued sluggishness in the wine and spirits segment due to a decline in shipment volumes. The soft volumes are expected to reflect the impacts of the SVEDKA divestiture and the 2025 Wine divestitures, as well as changes in financial and volume with respect to distributor contractual obligations.
Additionally, high packaging and raw material costs from continued inflationary pressures, as well as increased depreciation and operating costs from brewery capacity expansions, are likely to have been concerning. This is expected to have impacted the operating income in the beer, and wine and spirits businesses.
However, Constellation Brands is on track with its plans to invest in the next phase of capacity expansion in Mexico. This will help meet the potential demand for the high-end Mexican beer portfolio, including the Alternative Beverage Alcohol sub-space, which includes hard seltzers. The company has been on track to support the industry-leading beer business, reset its cost base and redefine the portfolio. It has been focused on boosting distribution gains and innovation.
Also, Constellation Brands' premiumization strategy is proving successful, as demonstrated by accelerated growth of its Power Brands. The Wine and Spirits business has been transitioning its portfolio toward higher-end brands that align better with consumer-led premiumization trends. Key growth drivers included the company's high-end Power Brands, such as The Prisoner Brand Family, Kim Crawford and Meiomi.
STZ Stock’s Valuation Picture
From a valuation perspective, Constellation Brands offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 11.22X, which is below the five-year high of 23.57X and the Beverages - Alcohol industry’s average of 15.11X, the stock offers compelling value for investors seeking exposure to the alcohol beverages space.
Image Source: Zacks Investment Research
The recent market movements show that STZ shares have lost 2.9% in the past three months against the industry's 1.9% growth.
Image Source: Zacks Investment Research
Stocks With the Favorable Combination
Here are some companies, which, according to our model, have the right combination of elements to post an earnings beat this time around:
Monster Beverage MNST has an Earnings ESP of +0.11% and presently flaunts a Zacks Rank of 1. The company is expected to register top and bottom-line growth when it reports fourth-quarter 2025 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.1 billion, which indicates a rise of 13% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly earnings has been unchanged in the past 30 days. The consensus mark for MNST’s earnings indicates growth of 26.3% from the year-ago quarter’s reported number. MNST delivered an earnings surprise of 5.5%, on average, in the trailing four quarters.
Celsius Holdings, Inc. CELH currently has an Earnings ESP of +6.16% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter 2025 EPS is pegged at 19 cents, which implies an increase of 35.7% from the year-ago quarter. The consensus mark has moved down by a penny in the past 30 days.
The consensus mark for Celsius Holdings’ quarterly revenues is pegged at $642.3 million, which indicates growth of 93.4% from the figure reported in the prior-year quarter. CELH delivered a trailing four-quarter earnings surprise of 42.9%, on average.
The Coca-Cola Company KO currently has an Earnings ESP of +1.65% and a Zacks Rank of 3. The company is expected to register growth in its top and bottom lines when it reports fourth-quarter 2025 results. The Zacks Consensus Estimate for KO’s quarterly earnings has been unchanged in the past 30 days at 56 cents per share. The consensus estimate for earnings indicates 1.8% growth from the year-ago quarter's number.
The Zacks Consensus Estimate for Coca-Cola’s quarterly revenues is pegged at $12.1 billion, implying a rise of 4.5% from the figure reported in the prior-year quarter. KO delivered an earnings surprise of 5.2%, on average, in the trailing four quarters.
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Constellation Brands Q3 Earnings Preview: Growth or Pressure?

In its upcoming report, Constellation Brands (STZ) is predicted by Wall Street analysts to post quarterly earnings of $2.66 per share, reflecting a decline of 18.2% compared to the same period last year. Revenues are forecasted to be $2.18 billion, representing a year-over-year decrease of 11.6%.
Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Bearing this in mind, let's now explore the average estimates of specific Constellation Brands metrics that are commonly monitored and projected by Wall Street analysts.
The combined assessment of analysts suggests that 'Net Sales- Wine and Spirits' will likely reach $170.25 million. The estimate points to a change of -60.5% from the year-ago quarter.
The consensus among analysts is that 'Net Sales- Beer' will reach $2.01 billion. The estimate points to a change of -1% from the year-ago quarter.
Based on the collective assessment of analysts, 'Operating Income- Wine and Spirits' should arrive at $10.85 million. The estimate is in contrast to the year-ago figure of $95.20 million.
Analysts' assessment points toward 'Operating Income- Beer' reaching $729.44 million. The estimate compares to the year-ago value of $769.90 million.
View all Key Company Metrics for Constellation Brands here>>>
Constellation Brands shares have witnessed a change of +1.7% in the past month, in contrast to the Zacks S&P 500 composite's +0.8% move. With a Zacks Rank #4 (Sell), STZ is expected underperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Countdown to Constellation Brands (STZ) Q3 Earnings: A Look at Estimates Beyond Revenue and EPS

Key Points
Constellation Brands holds a strong portfolio of popular beer brands, including Corona, Modelo, and Pacifico.
Despite lower sales, the company continues to generate ample free cash flow to fund its dividend payments.
The stock could double in value by returning its previous price-to-free-cash-flow multiple.
Constellation Brands (NYSE: STZ) owns a strong portfolio of beer brands, which the market is significantly undervaluing due to recent softness in consumer spending. The stock is down 35% year to date.
This is a rare opportunity to purchase the stock at a high dividend yield and low multiple of free cash flow. Here's what is pressuring sales in the near term, and why it doesn't reflect the long-term value of the company's brands.
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Top beer brands are gaining market share
The company reported a 15% year-over-year decline in sales last quarter; however, some of this decline is attributed to the sale of assets in the wine and spirits business. The beer segment is the company's most significant business, accounting for 94% of total net sales. On an adjusted basis, the segment's sales decreased by 7% year over year in the recent quarter.
Imported beer is playing a bigger role in the U.S. market. The Beer Institute says that nearly 18% of all beer consumed in the U.S. is imported. This trend benefits Constellation's beverage portfolio, which includes some of the most popular imported beers in the U.S., such as Corona, Modelo, and Pacifico. It licenses the right to market and distribute these brands, which provides the company with a competitive advantage.
The recent sales pressure was linked by the company to some customers being more cautious with spending. However, this means Constellation not experiencing a permanent decline in its brand positioning, but rather a temporary sales dip due to socioeconomic headwinds.
This sets up a catalyst next year when the year-over-year sales comparisons are more favorable. Management believes the company remains well positioned for long-term growth, as evidenced by its recent market share performance. Its top beer brands notched dollar share gains in the U.S. market last quarter, with Modelo Especial holding the No. 1 spot in dollar sales.
The stock offers a high dividend yield
Despite lower sales, the business generated $634 million of free cash flow in the last quarter and more than $1.8 billion on a trailing-12-month basis. This means investors can currently buy the stock at an attractive price-to-free-cash-flow multiple of 13.8. This is below its previous five-year average multiple of 25. The stock could double in value by simply returning to the free-cash-flow multiple that investors were willing to pay a year ago.
The value of the stock is further supported by its dividend. Constellation paid just 39% of its free cash flow in dividends over the last year, with the current quarterly payment at $1.02. The drop in the stock has brought the forward dividend yield up to 2.88% -- more than double the S&P 500 average.
The cyclical downturn is offering investors a great buying opportunity. Investors typically don't get the chance to invest in a company of this quality at this valuation when sales are growing. The near-term uncertainty is creating a rare opportunity to buy one of the best beer stocks at a bargain price.
Should you buy stock in Constellation Brands right now?
Before you buy stock in Constellation Brands, consider this:
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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $506,935!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,067,514!*
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John Ballard has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Constellation Brands Stock Could Be a Top Value Pick Heading Into 2026

Looking at the universe of stocks we cover at Dividend Channel, in trading on Friday, shares of Constellation Brands Inc (Symbol: STZ) were yielding above the 3% mark based on its quarterly dividend (annualized to $4.08), with the stock changing hands as low as $135.02 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF (SPY) back on 12/31/1999 — you would have paid $146.88 per share. Fast forward to 12/31/2012 and each share was worth $142.41 on that date, a decrease of $4.67/share over all those years. But now consider that you collected a whopping $25.98 per share in dividends over the same period, for a positive total return of 23.36%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.6%; so by comparison collecting a yield above 3% would appear considerably attractive if that yield is sustainable. Constellation Brands Inc (Symbol: STZ) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Constellation Brands Inc, looking at the history chart for STZ below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 3% annual yield.
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Also see:
AETI YTD Return
TPCO YTD Return
Funds Holding THAC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

STZ Dividend Yield Pushes Past 3%

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Cidara Therapeutics Inc (Symbol: CDTX), where a total of 6,238 contracts have traded so far, representing approximately 623,800 underlying shares. That amounts to about 57.5% of CDTX's average daily trading volume over the past month of 1.1 million shares. Especially high volume was seen for the $230 strike call option expiring January 16, 2026, with 3,019 contracts trading so far today, representing approximately 301,900 underlying shares of CDTX. Below is a chart showing CDTX's trailing twelve month trading history, with the $230 strike highlighted in orange:
Constellation Brands Inc (Symbol: STZ) options are showing a volume of 14,009 contracts thus far today. That number of contracts represents approximately 1.4 million underlying shares, working out to a sizeable 57.3% of STZ's average daily trading volume over the past month, of 2.4 million shares. Particularly high volume was seen for the $115 strike put option expiring January 30, 2026, with 2,505 contracts trading so far today, representing approximately 250,500 underlying shares of STZ. Below is a chart showing STZ's trailing twelve month trading history, with the $115 strike highlighted in orange:
And Lam Research Corp (Symbol: LRCX) options are showing a volume of 59,750 contracts thus far today. That number of contracts represents approximately 6.0 million underlying shares, working out to a sizeable 56.2% of LRCX's average daily trading volume over the past month, of 10.6 million shares. Especially high volume was seen for the $167.50 strike call option expiring December 19, 2025, with 3,648 contracts trading so far today, representing approximately 364,800 underlying shares of LRCX. Below is a chart showing LRCX's trailing twelve month trading history, with the $167.50 strike highlighted in orange:
For the various different available expirations for CDTX options, STZ options, or LRCX options, visit StockOptionsChannel.com.
Also see:
KBWY Options Chain
LOR Historical Stock Prices
SFBS Dividend History
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Friday Option Activity: CDTX, STZ, LRCX

Key Points
Constellation Brands and PepsiCo both underperformed the S&P 500.
Constellation’s beer business faces an existential crisis.
PepsiCo is being pressured to cut costs and implement significant changes.
Constellation Brands (NYSE: STZ) and PepsiCo (NASDAQ: PEP) were both considered stable blue chip stocks for conservative investors. Constellation was one of the world's largest producers of beers, wines, and spirits. PepsiCo was one of the top beverage makers and also owned resilient packaged food brands, including Frito-Lay and Quaker Foods.
However, over the past two years, Constellation's stock has plunged by over 40%, while PepsiCo's stock has dropped by 10%. During the same period, the S&P 500 rallied more than 40%. Let's see why these two consumer staples giants underperformed the market -- and if one is a better buy right now.
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Constellation faces formidable challenges
Constellation sells over 100 brands of alcoholic beverages. It generates most of its revenue from its beers, which include Modelo, Corona, and Pacifico. A smaller portion of its revenue comes from its wines and spirits, which include Kim Crawford and Casa Noble Tequila.
Over the past few years, Constellation's growth cooled off as it faced several formidable challenges. Younger consumers in America, where it generates most of its revenue, drank less beer than previous generations. Meanwhile, its Hispanic consumers -- who usually account for about half of its beer sales -- reined in their spending as the macro and political headwinds intensified under President Trump. The Trump Administration's higher tariffs on overseas aluminum further compressed the margins of its imported Mexican beers. It's trying to sell more hard seltzers and non-alcoholic beers to reach younger consumers again, but those newer drinks can't offset the ongoing shrinkage of its core beer brands.
As Constellation's beer business struggled, its sales of lower-end wines and spirits declined. It sold some of its cheaper wine and spirit brands to focus on its higher-end brands, but those divestments further reduced its revenues and exacerbated its slowdown.
For fiscal 2026 (which ends next February), Constellation expects its beer sales to decline 2%-4%, its wine and spirits sales to drop 17%-20% organically, and for its total organic sales to dip 4%-6%. Analysts expect its revenue and adjusted EPS to decline 11% and 4%, respectively.
For fiscal 2027, analysts expect its revenue to flatline as it faces the same challenges. However, they expect its adjusted EPS to rise 8% as it right-sizes its weaker businesses. At $140, Constellation's stock might seem cheap at ten times next year's earnings. It also pays a decent forward dividend yield of 2.9%. However, it probably won't attract a higher valuation until it stabilizes its beer business and right-sizes its smaller wine and spirits segments.
PepsiCo also needs to right-size its business
PepsiCo's organic sales also decelerated over the past two years. Its beverage business held steady, but its packaged food brands faced several major challenges. Quaker Foods issued a series of brand-tarnishing recalls, struggled with sluggish spending in China and Latin America, and ran out of room to shrink its packages and hike prices to counter inflation.
For 2025, PepsiCo expects a "low single-digit" increase in its organic sales, with its core comparable EPS remaining flat on a constant currency basis. It attributes that slowdown to higher tariffs, cautious consumer spending, and stiff competition from other packaged food brands.
That dim outlook attracted the attention of Elliot Management, a large activist fund that took a $4 billion stake in PepsiCo in September. Elliot wants PepsiCo to prune roughly 20% of its product portfolio to focus on its core brands, reduce prices to stay competitive, and streamline spending through plant closures and layoffs. It also wants PepsiCo to mimic Coca-Cola (NYSE: KO) and outsource its internal beverage production to independent bottlers.
By right-sizing its portfolio and adopting Coca-Cola's asset-light bottling model, PepsiCo can generate stronger top and bottom-line growth over the next few years. However, for 2025, analysts expect its revenue to rise only 2%, as its adjusted EPS remains flat.
For 2026, they expect its revenue and adjusted EPS to increase 4% and 5%, respectively, as some of those turnaround efforts pay off. At $150, PepsiCo's stock still appears attractive at 18 times forward earnings and offers a high forward dividend yield of 3.8%. But just like Constellation, PepsiCo's stock will stay in the penalty box until it addresses its most pressing issues.
The better buy: PepsiCo
I wouldn't rush to buy either of these troubled consumer staples stocks right now. But if I had to choose one over the other, I'd pick PepsiCo because it faces fewer long-term headwinds. PepsiCo needs to cut costs and trim some of its weaker brands, but it doesn't face an existential crisis like Constellation -- which desperately needs fresh ways to revive its ailing beer business.
Should you buy stock in Constellation Brands right now?
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Leo Sun has positions in Coca-Cola. The Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Best Stock to Buy Right Now: Constellation Brands vs. PepsiCo

Key Points
Constellation’s growth stalled out over the past three years.
It’s trying to refresh its beer business and right-size its wine and spirits segments.
The stock looks cheap, but it won’t command a higher valuation anytime soon.
Constellation Brands (NYSE: STZ), one of the world's largest producers of beers, wines, and spirits, was considered a stable blue chip stock. But over the past three years, Constellation's stock declined more than 40% as the S&P 500 rallied over 70%.
Constellation lost its luster as its growth stalled out, it grappled with rising tariffs, and it racked up steep losses. But can it overcome those challenges over the next three years?
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Why did Constellation's growth cool off?
Constellation sells over 100 brands of alcoholic beverages. In fiscal 2025 (which ended this February), it generated 84% of its revenue from its beers (including Modelo, Corona, and Pacifico), 14% from its wines (including Kim Crawford, Ruffino 1887, and The Prisoner), and 4% from its spirits (including Casa Noble Tequila, Svedka Vodka, and High West Whiskey). Here's how those three core businesses fared over the past three fiscal years.
Metric
FY 2023
FY 2024
FY 2025
Beer Revenue Growth
11%
9%
5%
Wine Revenue Growth
(5%)
(10%)
(7%)
Spirits Revenue Growth
6%
(7%)
(11%)
Total Revenue Growth
7%
5%
2%
Constellation's beer business cooled off in fiscal 2024 and fiscal 2025 as it faced several major challenges. Younger consumers in the U.S., where it generates most of its revenue, drank less alcohol than previous generations. At the same time, many of its Hispanic consumers -- who accounted for about half of its beer sales -- reined in their spending as they dealt with immigration issues and other macro headwinds under the Trump Administration.
Rising tariffs on aluminum cans (which accounted for nearly 40% of its beer shipments from Mexico), supply chain constraints in Mexico (due to the Mexican government's cancellation of a planned brewery in 2020), and inflation also forced it to raise its prices. Those price hikes exacerbated its slowdown, even as it launched new types of alcoholic beverages (like hard seltzer) and alcohol-free drinks to reduce its dependence on traditional beers.
Its smaller wine and spirits segments also struggled as consumers not only drank less but shunned cheaper brands. To keep pace with that shift, it sold a lot of its lower-end wine and spirit brands to focus on its higher-end brands. But by right-sizing those two segments, it reduced their revenues and increased the weight of its struggling beer business.
Will Constellation grow again over the next three years?
In the first six months of fiscal 2026, Constellation's revenue fell 10% year over year as its sales of beer, wine, and spirits all declined. For the full year, it expects its beer sales to decline 2%-4%, its wine and spirits sales to plunge 17%-20% (on an organic basis), and for its total revenue to slide 4%-6% (on an organic basis).
Analysts expect its total revenue to drop 11%. However, they expect its revenue to stay nearly flat in fiscal 2027 and finally rise 3% in fiscal 2028 as its right-sized business grows again and faces fewer macro headwinds.
Constellation turned unprofitable on a generally accepted accounting principles (GAAP) basis in fiscal 2022 and fiscal 2023 as its investment in the Canadian cannabis company Canopy Growth (NASDAQ: CGC) backfired. It turned profitable again in fiscal 2024, but it posted another net loss in fiscal 2025 as it booked big impairment charges from its ongoing divestments.
But as it laps those challenges, analysts expect it to turn profitable again in fiscal 2026 and grow its GAAP earnings per share (EPS) by 18% in fiscal 2027 and 4% in fiscal 2028. On a non-GAAP basis, which tunes out all that noise, they expect its EPS to dip 4% in fiscal 2026, rise 8% in fiscal 2027 as its business stabilizes, but decline 2% in fiscal 2028.
We should take those estimates with a grain of salt, but they imply that Constellation can grow again by diversifying its beer portfolio, right-sizing its wine and spirits segments, and weathering the Trump Administration's tariffs and other macro headwinds.
Where will Constellation's stock be in three years?
Constellation's stock trades at just 12 times its forward adjusted earnings estimates and pays a forward dividend yield of 2.9%. That low valuation and attractive yield should limit its downside potential. However, its upside potential could also be limited until it proves that it can right-size its business and overcome its near-term challenges. So for now, I believe Constellation's stock will trade sideways over the next three years until it proves its wobbly business model is sustainable.
Should you invest $1,000 in Constellation Brands right now?
Before you buy stock in Constellation Brands, consider this:
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Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Where Will Constellation Brands Stock Be in 3 Years?

Key Points
Constellation Brands is down nearly 35% year to date.
Investors should not ignore the stock's attributes despite falling sales.
Things have continued to go wrong for Constellation Brands (NYSE: STZ), particularly over the last year.
Rising tariffs have caused worries about the sales of its top beer brands, particularly Modelo, which is the U.S.'s No. 1-selling beer. Americans are also drinking less across the board, further reducing the company's sales.
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Amid such conditions, the alcohol producer and distributor has drawn a prominent investor in Warren Buffett's Berkshire Hathaway, which added shares despite being a net seller of stocks. The question now is whether the challenging conditions can play into investors' hands in 2026.
Where Constellation Brands stands
In 2025, even as Buffett's team bought the stock, conditions had deteriorated. In the first half of fiscal 2026 (ended Sept. 30), net sales fell more than 10% to $5 billion.
During that time, the company managed to earn $982 million. While that was an increase, the only reason earnings rose was because Constellation experienced a goodwill impairment of nearly $2.3 billion in the first half of 2024.
Amid such conditions, the stock has lost almost 35% of its value over the last year.
What to look for in 2026
Nonetheless, in that state, the stock appears oversold, setting the stage for a possible recovery in 2026.
Buffett's interest in the stock has little to do with it, though the team at Berkshire may have keyed on these conditions.
First is Constellation's valuation. The aforementioned goodwill impairment likely raised its price-to-earnings (P/E) ratio to 21, but a forward P/E of 13 is cheap by any measure.
Moreover, the company has paid a dividend and increased it annually since 2015. The current annual payout of $4.08 per share offers a dividend yield of 2.8%, far above the 1.1% average of the S&P 500.
Additionally, Constellation is on track for between $1.3 billion and $1.4 billion in free cash flow in fiscal 2026. That can cover its yearly dividend cost of approximately $725 million. It can also finance share repurchases. Since the outstanding share count fell by more than 3% in the last year alone, share prices stand a higher chance of rebounding in 2026.
Constellation Brands stock in 2026
The current state of Constellation Brands could begin to stoke a recovery in the stock in 2026.
Admittedly, a trend away from alcohol consumption and the rising tariffs rightly concern investors. However, that also shows that alcohol consumption is not going away. It is merely shrinking, and the stock's 40% decline indicates that investors may have overreacted.
By buying Constellation stock now, investors get in at a low valuation and benefit from a high and rising dividend return. That payout could increase demand for shares at a time when buybacks have reduced the number of available shares.
Thus, even if sales struggle in the near term, Constellation can still turn into a market-beating growth and income stock in 2026.
Should you invest $1,000 in Constellation Brands right now?
Before you buy stock in Constellation Brands, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Constellation Brands wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $513,353!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,908!*
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Will Healy has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

What to Watch With Constellation Brands Stock in 2026

Key Points
Constellation Brands (STZ) stock has underperformed the S&P 500 index, declining 41% over the past 12 months.
Surveys show customers growing more concerned over personal finances, which is weighing on demand.
The stock's decline has brought its dividend yield up to an attractive 2.87%.
Constellation Brands (NYSE: STZ) has a long record of paying dividends and delivering returns to shareholders. However, the stock has moved in the opposite direction from the S&P 500 index over the past two years. Over the last 12 months, the stock has declined by 41%, compared to a 12% gain for the S&P 500.
Sales of the company's top beer brands, such as Corona and Modelo, have suffered due to economic pressure on its core customers. Still, the near-term headwinds could provide investors with an excellent opportunity to buy shares at attractive valuations.
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What happened to Constellation Brands
Constellation has a strong portfolio of wine, spirits, and beer brands, with the latter accounting for the majority of its annual revenue. It holds the distribution rights to some of the most popular imported brands in the U.S., including Corona, Modelo Especial, and Pacifico. Lower sales of these imports contributed to a 15% year-over-year decline in the company's total revenue last quarter.
A key factor in the decline has been a weak consumer spending environment, in which 80% of surveyed consumers expressed concern about their personal finances. However, management continues to invest in long-term expansion because it believes the recent sales declines are temporary. Nothing has changed the value of its brands, as Pacifico, Corona, and Modelo have retained top market share positions in the beer category.
One of the ways the company is investing to benefit shareholders is by selling off lower-end wine and spirits brands to focus on more profitable opportunities in premium wines and other segments. It recently sold off its Svedka vodka brand and related assets for $409 million. The proceeds from asset sales are funding share buybacks, debt repayments, and investments in its beer brands, which are expected to drive long-term growth in earnings per share.
Focusing on business fundamentals can lead to big payoffs
When the stocks of profitable companies decline, it can create a great buying opportunity ahead of a recovery in the underlying business. Obviously, investors who bought shares last year are underwater now, but the stock could rebound over the next few years if revenue stabilizes and begins to grow again. The stock was recently trading at just 13.7 times free cash flow.
The business generated more than $1.8 billion in free cash flow over the last four quarters, indicating Constellation remains capable of generating healthy profits even when sales are down. This cash flow is more than adequate to fund dividend payments. Over the last year, it paid 39% of its free cash flow in dividends.
With a stock offering an above-average forward dividend yield of 2.87%, Constellation Brands is a solid value stock to consider buying heading into 2026.
Should you invest $1,000 in Constellation Brands right now?
Before you buy stock in Constellation Brands, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Constellation Brands wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $499,978!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,126,609!*
Now, it’s worth noting Stock Advisor’s total average return is 971% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of December 8, 2025
John Ballard has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

How Has Constellation Brands (STZ) Stock Done For Investors?

Investors in Constellation Brands Inc (Symbol: STZ) saw new options begin trading today, for the January 2026 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the STZ options chain for the new January 2026 contracts and identified one put and one call contract of particular interest.
The put contract at the $149.00 strike price has a current bid of $5.00. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $149.00, but will also collect the premium, putting the cost basis of the shares at $144.00 (before broker commissions). To an investor already interested in purchasing shares of STZ, that could represent an attractive alternative to paying $150.34/share today.
Because the $149.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 58%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.36% return on the cash commitment, or 24.50% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Constellation Brands Inc, and highlighting in green where the $149.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $152.50 strike price has a current bid of $6.10. If an investor was to purchase shares of STZ stock at the current price level of $150.34/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $152.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.49% if the stock gets called away at the January 2026 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if STZ shares really soar, which is why looking at the trailing twelve month trading history for Constellation Brands Inc, as well as studying the business fundamentals becomes important. Below is a chart showing STZ's trailing twelve month trading history, with the $152.50 strike highlighted in red:
Considering the fact that the $152.50 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 49%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 4.06% boost of extra return to the investor, or 29.62% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 37%, while the implied volatility in the call contract example is 38%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $150.34) to be 33%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.