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 выглядит как зрелый бизнес с сильной маржинальностью, но с заметной премией в оценке по выручке и балансовым мультипликаторам. P/E находится примерно на уровне отрасли, поэтому сам по себе не даёт сильного сигнала о недооценке или переоценке. При этом P/S и P/B существенно выше медианы, что указывает на дорогую оценку относительно объёма продаж и балансовой стоимости. С другой стороны, P/FCF ниже отраслевой медианы, а это поддерживает тезис о том, что денежный поток у компании выглядит лучше, чем может казаться по выручке и балансу. Рентабельность у STZ сильная: gross margin около 52%, operating margin почти 30%, net margin выше отрасли, что говорит о хорошем ценообразовании и контроле затрат. ROE и ROI находятся на приемлемом уровне и в целом подтверждают эффективность капитала, хотя ROA ниже отраслевой медианы и показывает, что активная база используется не идеально. Долговая нагрузка остаётся важным риском: debt/equity и long-term debt заметно выше медианы, а quick ratio ниже комфортного уровня, что ограничивает финансовую гибкость. При этом current ratio уже выглядит приемлемо, а cash on hand вырос, что немного смягчает картину ликвидности. Дивидендная доходность постепенно повышается, что добавляет акционерной привлекательности, но не компенсирует полностью премиальную оценку. По динамике видно, что выручка и прибыль не демонстрируют устойчивого ускорения, а часть показателей колеблется, поэтому рынок вряд ли будет долго платить высокий мультипликатор без нового драйвера роста. В сумме фундаментал скорее поддерживает качественный, но не дешёвый профиль компании: сильная маржа и денежный поток против высокой оценки и повышенного долга. Для инвестора это означает умеренно осторожный взгляд: бизнес крепкий, но потенциал переоценки ограничен, а текущая цена уже учитывает значительную часть качества.

Constellation Brands, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, без изменений. Рынок на стороне быков.

Strong index, flat. The market is on the bulls' side.

Средний индекс, значительно вырос. Приток средств в лонги резко увеличился и находится на высоком уровне.

Medium index, significantly up. The inflow of funds into longs has increased sharply and is at a high level.

STZ демонстрирует сильную маржу и денежный поток, но торгуется с премией по P/S и P/B при повышенном долге, поэтому оценка выглядит скорее справедливой, чем дешёвой.

Brown-Forman B (BF.B) came out with quarterly earnings of $0.12 per share, missing the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -63.82%. A quarter ago, it was expected that this company would post earnings of $0.48 per share when it actually produced earnings of $0.58, delivering a surprise of +20.83%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Brown-Forman B, which belongs to the Zacks Beverages - Alcohol industry, posted revenues of $912 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 4.05%. This compares to year-ago revenues of $894 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Brown-Forman B shares have lost about 5% since the beginning of the year versus the S&P 500's gain of 10.4%.
What's Next for Brown-Forman B?
While Brown-Forman B has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Brown-Forman B was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.37 on $916.98 million in revenues for the coming quarter and $1.69 on $3.92 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Beverages - Alcohol is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Constellation Brands (STZ), is yet to report results for the quarter ended May 2026. The results are expected to be released on June 30.
This wine, liquor and beer company is expected to post quarterly earnings of $3.21 per share in its upcoming report, which represents a year-over-year change of -0.3%. The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level.
Constellation Brands' revenues are expected to be $2.42 billion, down 3.7% from the year-ago quarter.
Should You Invest in Brown-Forman Corporation (BF.B)?
Before you invest in Brown-Forman Corporation (BF.B), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Brown-Forman B (BF.B) Misses Q4 Earnings Estimates

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Constellation (STZ) Q4 2026 Earnings Transcript

Key Points
New CEO Greg Abel appears willing to tighten up Berkshire Hathaway's focus on just the best and most meaningful investment opportunities.
Calculated risks and turnaround plays may become more common within the company’s stock portfolio.
While investors have historically closely followed the conglomerate's stock holdings, Berkshire may prioritize stock picks less in the future.
Greg Abel's first quarter as Berkshire Hathaway's (NYSE: BRKA) (NYSE: BRKB) CEO is officially in the books. And things certainly seem at least a little bit different than how they were when Warren Buffett was at the helm.
With the exception of its expanded stake in Alphabet, which is now the conglomerate's fifth-largest holding, and a cut to its investment in Chevron, there wasn't much change in the company's top 10 equity positions -- which make up roughly 80% of the portfolio's value at recent prices.
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There are still some big takeaways to glean from the seemingly small changes Abel made in Q1, however, that could make a meaningful impact on this ticker's long-term performance. Here are the three most important ones I see.
1. Not bothering with pointlessly small positions
While Berkshire Hathaway's biggest holdings didn't change much last quarter, many of the smaller ones did. In addition to Charter Communications and Aon, Abel also shed longtime holdings Visa and Mastercard, along with a relatively recently acquired position in Amazon.
The common thread among the 16 stocks sold entirely in Q1? Not a single one of them accounted for more than 1% of the value of Berkshire Hathaway's entire stock portfolio. Even if any of these names were destined for big gains, it would have made little net impact.
Honestly, I never understood why Buffett bothered with such small positions. They seemed like more of a distraction that Abel doesn't want.
2. Letting go of losers
There's much to be said for being willing to hold onto a stock for Buffett's favorite holding period of "forever." There's also something to be said for being willing to bail out of an underperforming position -- even at a loss -- when it's clear that something's not panning out.
That's what Abel seems to think, anyway. Despite owning some of them for only a few quarters, Berkshire got out of positions in Pool Corp., UnitedHealth, and Domino's Pizza and sold most of its stake in Constellation Brands (NYSE: STZ), just to name a few. In most cases, these exits would have locked in a loss.
It's difficult to disagree with the decisions, though. For instance, while Constellation was a promising turnaround prospect when Berkshire first began accumulating it back in late 2024, it's since become clear that the booze business's headwind may be more secular than cyclical. Gallup reports the number of Americans who regularly consume alcohol reached a multidecade low last quarter. This weakness could last for a full generation.
Ditto for health insurer UnitedHealth. The healthcare system's skyrocketing operating costs and subsequent price increases have reached untenable levels. The business will require a massive overhaul to repair, and it's not clear what it will look like afterward. Berkshire's managers know enough to know they can't afford to wait around for the unknown distant future while weighing the stock down in the present.
3. Willingness to invest in special situations
The line dividing undervalued stocks and long-shot turnaround stories can sometimes be blurry. Buffett usually remained on the "undervalued" side of the fence and was rewarded for recognizing the right buying opportunities. His willingness to scoop up beaten-down Goldman Sachs shares in the midst of 2008's subprime mortgage meltdown, for example, ended up paying off handsomely. In retrospect, it was a no-brainer move.
Abel seems willing to strategically bet on companies with seemingly less resiliency than Goldman. In Q1, for example, he steered Berkshire into new stakes in Delta Air Lines and department store chain Macy's. While these companies aren't doomed, they're both facing serious systemic challenges. For instance, although Delta's revenue has continued to reliably grow, its bottom line has been mostly stagnant since 2016 largely because the highly competitive air travel business continues evolving in ways that pinch its profitability. As for Macy's, why would Abel want to own a piece of a brick-and-mortar retailer that's been reporting declining revenue since 2016? It may have something to do with the fact that Macy's owned real estate alone may be worth more than the company's current market cap.Now it's just a matter of figuring out how to unlock that value.
More to the point, these don't seem like businesses Warren Buffett would have bought into, recognizing something big would need to change to make them worth owning. Indeed, back in his 2007 letter to Berkshire shareholders, Buffett bluntly wrote, "The airline industry's demand for capital ever since that first flight has been insatiable. Investors have poured money into a bottomless pit, attracted by growth when they should have been repelled by it."
Bonus: Fewer stocks, more wholly owned businesses... maybe
Finally, while Berkshire Hathaway added or expanded stock positions during the first quarter, the cash hoard continues to grow, reaching a record $397 billion as of the end of March.
It's broadly understandable. Stocks as a whole are unusually expensive right now, with the S&P 500 (SNPINDEX: ^GSPC) priced at roughly 22 times its projected earnings.
Not every stock is wildly overvalued here, however. Indeed, data from Yardeni Research indicates that without the artificial intelligence (AI)-centric "Magnificent Seven" stocks' valuations factored in, the S&P 500's forward-looking price-to-earnings ratio is a much more palatable 19. Point being, there are reasonably priced equities out there, if Abel wants Berkshire Hathaway to buy them. He doesn't -- at least not yet.
So what does he want to do with all that cash? While he may be waiting for a more compelling economic backdrop to start making bigger equity investments, it's also possible this is the beginning of a more philosophical shift away from a somewhat broken stock market and toward more outright ownership of cash-generating businesses that Berkshire can wholly control. As a reminder, Berkshire Hathaway completed its acquisition of Occidental Petroleum's chemical business, OxyChem, at the beginning of this year. Although it already operates in the chemical space via Lubrizol and LiquidPower, Berkshire didn't really need to outright buy OxyChem. It just wanted to.
One deal doesn't make a trend. All trends, however, start with that first step. And honestly, less reliance on increasingly volatile stocks and more exposure to privately held businesses may be the best thing for Berkshire Hathaway shareholders for the foreseeable future.
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James Brumley has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Amazon, Berkshire Hathaway, Domino's Pizza, Goldman Sachs Group, Mastercard, and Visa. The Motley Fool recommends Constellation Brands, Delta Air Lines, Occidental Petroleum, Pool, and UnitedHealth Group. 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.

I Still Like the Stock, but This Definitely Isn't Warren Buffett's Berkshire Hathaway Anymore

Key Points
Berkshire's new CEO dumped a lot of stocks while adding positions in Delta and Macy's.
CEO Greg Abel's biggest move, though, was significantly increasing Berkshire's stake in Alphabet.
The quarterly filing of Berkshire Hathaway's (NYSE: BRKA) (NYSE: BRKB) Form 13F, revealing what moves the conglomerate made within its stock portfolio, is always a highly anticipated event for investors. Former CEO Warren Buffett is a legendary investor, so people no doubt wanted to see what moves Greg Abel made in his first quarter as chief executive.
If I were an owner of Berkshire stock, though, I would be highly disappointed with Abel's actions. First, it appears Abel just dumped all of former Berkshire fund manager Todd Combs' picks, including some highly attractive businesses like Amazon, Visa, and Mastercard. Combs was one of two portfolio managers, along with Ted Weschler, that Buffett had hired to work with him, and he later took on the additional role of CEO of GEICO, one of Berkshire's most important insurance subsidiaries. After getting passed over to head Berkshire, he left in early December to lead JPMorgan Chase's $10 billion Strategic Investment Group.
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During the quarter, Berkshire fully exited 15 positions and almost all of its Constellation Brands stake. Along with newly added stocks, Berkshire went from owning 39 stocks at the end of last year to just 26 at the end of Q1.
Is Berkshire repeating past mistakes?
However, more concerning were the stocks Abel did add, as he bought shares in companies in two industries that Buffett has admitted were mistakes for him to get involved in.
Abel's largest new position was in Delta Air Lines (NYSE: DAL), where he took a $2.6 billion stake, purchasing over 6% of the airline's stock. Buffett is well-known for his dislike of airlines' economics -- he once called their need for capital a "bottomless pit" -- and his regret over past investments. In 1989, Berkshire invested in the preferred stock of US Airways, with Buffett later calling the investment an "unforced error." While he managed to squeeze out a small gain when he exited in 1998, he called it a "terrible mistake," while noting he was lucky to dodge the airline eventually going bankrupt. Buffett took a second dip into the airline sector in 2016, with a basket of investments in four airlines, this time taking a loss in 2020 as the COVID-19 pandemic severely reduced air travel.
The allure of airlines is generally straightforward. Investors typically see the industry gaining pricing power as capacity rationalizes. This could be from consolidation or bankruptcy, as in the case of Spirit Airlines. The airlines also have very attractive credit card businesses. However, this is still a very capital-intensive and economically sensitive industry, and things seem to go wrong if you hold these stocks long enough.
In addition to Delta, Abel also took a $55 million stake in department store operator Macy's (NYSE: M). Buffett has noted that retailing is a tough business with little moat, where management needs to stay smart. This is the first department store investment by Berkshire since 1966. However, based on comments to CNBC in March about a tiny purchase he liked, this seems like an investment Buffett could be behind, and he and Abel were likely lured in by the value of Macy's real estate portfolio, highlighted by its highly valuable New York City flagship store. That said, Macy's trading well below the value of its real estate portfolio has been an investment thesis for a very long time, and it hasn't exactly helped the stock over the past decade, when it has lost nearly 40% at recent prices.
Also of note, Abel did significantly add to Berkshire's Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) position, which I like, since in my view it is the best-positioned company with artificial intelligence (AI) over the long term, given that it is the only player with both its own world-class AI model and chips. However, he also tripled his stake in newspaper owner The New York Times (NYSE: NYT), after starting a position in Q4. The company has been doing well, but at a forward P/E of nearly 27 at recent prices, the valuation doesn't seem that attractive.
While Abel should be given some time to see how Berkshire's portfolio performs under his leadership, I personally am not a fan of most of his early moves, outside of Alphabet. The good news is that Alphabet was his largest move by far, with him buying about $10 billion more worth of shares than the Delta buy, which was his second-largest purchase.
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JPMorgan Chase is an advertising partner of Motley Fool Money. Geoffrey Seiler has positions in Alphabet and Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, Berkshire Hathaway, JPMorgan Chase, Mastercard, The New York Times Co., and Visa. The Motley Fool recommends Constellation Brands and Delta Air Lines. 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.

Did New Berkshire Hathaway CEO Greg Abel Repeat Past Warren Buffett Mistakes?

Key Points
Berkshire didn't sell a single Apple share during the first quarter -- a shift from a multi-quarter trend.
The conglomerate more than tripled its stake in Alphabet during the period.
Apple's revenue grew 17%, and earnings per share jumped 22% in its most recent quarter.
Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) released its first 13-F filing under new CEO Greg Abel late on Friday, and it included two of the most striking equity moves the conglomerate has made in years. Most notably, Abel and his team chose not to trim Berkshire's massive stake in Apple (NASDAQ: AAPL) -- halting a multi-quarter selling trend that former CEO Warren Buffett had presided over for nearly two years. Equally telling, Berkshire more than tripled its position in Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), a position the Buffett-era team had only initiated months earlier.
These moves signal a vote of confidence in big tech from a CEO previously known for his operating work running Berkshire's collection of utilities. They may also confirm something many longtime Berkshire shareholders had suspected: that the prior selling of Apple was less about a souring view on the iPhone maker and more about right-sizing a position that had grown enormous through years of compounding. I predicted in that Abel would put an end to the trimming -- and so far, that is exactly what is happening.
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But there is more to this filing than just Apple and Alphabet. The cleanup of several other positions reveals how Abel may run the portfolio going forward.
A reshuffled portfolio with two clear signals
The 13-F revealed that Berkshire held its Apple position steady at roughly 228 million shares. While that stake is well below Berkshire's all-time peak of more than 900 million shares, it still represents about 22% of the conglomerate's equity portfolio, and it remains Berkshire's largest position. American Express and Coca-Cola followed at about 17% and 12% of the portfolio, respectively.
The more dramatic move was in Alphabet. Berkshire's share count in the search giant rose from about 17.85 million at the end of 2025 to roughly 58 million by the end of March -- pushing the position's value to nearly $17 billion. That is a sizable bet, particularly considering Buffett's historical reluctance to invest heavily in technology.
The buying didn't stop there. Berkshire disclosed a new $2.65 billion stake in Delta Air Lines (NYSE: DAL) and a small position in Macy's (though this position was so small that it was immaterial) -- both signals of a willingness to enter spaces Buffett had avoided in recent years.
The selling was even more aggressive.
Berkshire exited Amazon, Visa, Mastercard, Domino's Pizza, and UnitedHealth Group during the quarter, and slashed its Constellation Brands stake by 95%. Chevron was cut significantly as well. Many of these positions were previously associated with departed investment manager Todd Combs, suggesting Abel is putting his own stamp on the equity book.
Apple's business looks like a long-term hold
Beyond the portfolio mechanics, Apple's underlying fundamentals make Berkshire's decision to leave the largest position alone look easy.
When Apple reported its fiscal second quarter of 2026 results (the period ended March 28, 2026) at the end of April, the tech company posted its best March quarter ever. Revenue rose 17% year over year to $111.2 billion, with double-digit growth across every geographic segment. Earnings per share grew 22%. Even better, these growth rates marked an acceleration from the company's prior quarter, when revenue and earnings per share rose 16% and 19%, respectively.
Further, Apple's strength was broad-based. iPhone revenue jumped 22% year over year to $57 billion, while services revenue set yet another all-time record at $31 billion -- up 16%. And the services business may matter even more than the top-line numbers suggest; the segment's gross margin in fiscal Q2 came in at 76.7%, far above the 38.7% products gross margin.
Apple CEO Tim Cook's commentary on the company's fiscal Q2earnings callwas equally upbeat.
"The iPhone 17 family is now the most popular lineup in our history when looking at the launch through March," Cook said. "And according to IDC, we gained market share during the quarter."
Management's guidance for the fiscal third quarter (the period ending in late June) also impressed. Apple expects revenue to grow 14% to 17% year over year, suggesting the iPhone 17 cycle still has runway.
Further, the tech giant also raised its dividend by 4% to $0.27 per share and added $100 billion to its share-buyback authorization.
There are, however, some risks worth flagging. Cook noted on the call that the company expects "significantly higher memory costs" in the June quarter. And that the impact could grow over time as memory manufacturers prioritize artificial intelligence (AI) chips. The pending leadership transition is also worth watching; Cook will step down as CEO on Sept. 1, with senior vice president John Ternus taking over.
Still, neither risk seems severe enough to disrupt the longer-term thesis for Apple (or for Berkshire as a major shareholder).
And ultimately, the way Abel handled Berkshire's biggest positions in his first quarter as CEO arguably makes the conglomerate's stock more attractive. By stepping away from Buffett's late-cycle Apple selling and dramatically expanding the firm's stake in a market-leading tech company at a reasonable valuation, Abel signaled a willingness to chart his own course for the equity book.
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Before you buy stock in Berkshire Hathaway, 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 Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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American Express is an advertising partner of Motley Fool Money. Daniel Sparks and his clients have positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Alphabet, Amazon, American Express, Apple, Berkshire Hathaway, Chevron, Domino's Pizza, Mastercard, and Visa. The Motley Fool recommends Constellation Brands, Delta Air Lines, and UnitedHealth Group. 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.

Under Greg Abel, Apple Stock Looks Like It's Here to Stay in Berkshire Hathaway's Portfolio

Key Points
Target's decades-long dividend discipline, scale advantages, and pessimistic valuation create a compelling long-term income opportunity today.
Nike's intact brand and wholesale reset position it for dividend growth and upside from deeply discounted levels.
Constellation's premium Mexican beer focus and demographic tailwinds support resilient dividends despite near-term ongoing headwinds.
There is a difference between a stock that pays a dividend and a stock built around the discipline of consistently paying one. The three companies below have structured their entire capital return philosophies around their commitments to grow those dividend checks year after year, through recessions, trade wars, management transitions, and every variety of market chaos. That consistency is the output of durable competitive positions that have earned the right to be viewed as long-term holdings.
Target: 235 dividend checks and counting
Target (NYSE: TGT) has paid a dividend every single quarter since it went public in October 1967. This is a streak of 235 consecutive payments. It has raised its payouts for 54 straight years, a record that earns it entry into the exclusive club of Dividend Kings -- companies that have increased their annual payouts for at least 50 consecutive years.
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The retail giant's stock is down roughly 45% from its 2021 peak and now trades near $129, a level not seen since 2018. Its dividend yield, as a result, has expanded to roughly 3.5%, one of Target's better income entry points in years. The next ex-dividend date is May 13, meaning investors who act this week will receive the June 1 payment.
The bear case on Target is real: Comparable sales growth has been flat to negative, tariff pass-through costs are rising, and after several years of boycotts and brand damage, the company is navigating a brand refresh under new CEO Jim Lee.
But the bull case for long-term holders is equally clear: Target operates in a category -- general merchandise retail -- where the digital and physical shopping experience is converging, and its scale, store network, and fulfillment infrastructure are competitive advantages that took decades to build. Investors who bought Target stock at any point of high pessimism over the past 50 years and held on have been rewarded with both capital appreciation and a dividend that was never cut, suspended, or missed.
Nike: A stock at a 12-year low, but with a 24-year dividend-hiking streak
Nike (NYSE: NKE) is in the middle of a turnaround, and the stock has priced in far more damage than the brand itself has actually sustained. The shares trade near $43, a level not seen since 2014, down roughly 76% from their 2021 all-time high. That is the kind of markdown that historically precedes meaningful long-term returns when the underlying brand remains intact.
This brand is still intact. CEO Elliott Hill -- a 32-year Nike veteran who came out of retirement to lead the recovery effort -- is executing what he calls a "Wholesale Renaissance," rebuilding the distribution relationships that its prior direct-to-customer sales strategy dismantled, and restoring Nike's presence in specialty running and sport channels that competitors like Hoka and On Holding have entered. In its fiscal 2026 third quarter, which ended Feb. 28, wholesale revenue rose 8% globally and 24% in North America, and the running category posted growth above 20% for the second straight quarter.
Meanwhile, Nike has raised its dividend for 24 consecutive years. Its next quarterly dividend of $0.41 per share, just declared in April, is payable July 1.
Constellation Brands: The beer that America already chooses
Constellation Brands (NYSE: STZ) owns Modelo Especial -- the No. 1 selling beer in the United States by volume. It owns Corona. It owns Pacifico. These are hugely popular beers in North America.
The stock is down roughly 50% from its 2023 peak, trading near $148, which has lifted its dividend yield to approximately 2.8%. The company returned more than $900 million to shareholders in fiscal 2026 despite a challenging operating environment driven by consumer caution, higher tariff costs on Mexican imports, and the divestiture of its mainstream wine and spirits portfolio.
That divestiture is the non-obvious positive in the Constellation story. The company shed its lower-margin wine brands to concentrate entirely on premium Mexican beer -- a segment that has taken sustained share from domestic brews for more than a decade. The underlying trend here is demographic: Latinos are the fastest-growing demographic group in the United States, and Modelo carries a level of brand equity that can't be unraveled by a trade war or a soft quarter.
For investors buying a dividend that has been maintained through real operational pressure, at a price that reflects maximum pessimism toward a brand that still dominates the No. 1 category in American drinking culture, the long-term math looks right.
Should you buy stock in Nike right now?
Before you buy stock in Nike, 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 Nike 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 $475,926!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,296,608!*
Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 205% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of May 8, 2026.
Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike, On Holding, and Target. 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.

3 Dividend Stocks Built to Last a Lifetime and Pay You the Whole Way

Key Points
Warren Buffett increased Berkshire Hathaway's position in Constellation Brands in 2025 before retiring.
Walmart's global advertising business grew 46% in fiscal year 2026.
PepsiCo lowered prices of many of its products by up to 15% in an effort to lure back customers.
In a time when shoppers are dismayed by sticker shock across all types of stores, four companies will remain atop the best consumer stocks to buy in 2026 for their resilience, competitive moats, and ability to keep customers happy. Walmart (NASDAQ: WMT), Costco (NASDAQ: COST), PepsiCo (NASDAQ: PEP), and Constellation Brands (NYSE: STZ) do more than just survive economic downturns; they are positioned to continue to grow through them.
Walmart is becoming a tech company
Back in December 2025, Walmart switched from the New York Stock Exchange (NYSE) to the Nasdaq to better align with its identity as a tech-driven, omnichannel retailer. Walmart has an impressive diversified portfolio ranging from groceries to household goods and even a rapidly growing advertising business. In this regard, Walmart competes directly with the behemoth Amazon.
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Walmart's financials are exceptional. In fiscal year 2026, the retailer reported a 4.7% increase in overall revenue, bringing the total to $713 billion. The global advertising business was the real star of the year, growing 46% to $6.4 billion. Walmart raised its quarterly dividend to $0.2475 per share, which works out to $0.99 per share per year. The company has now increased dividends for 53 consecutive years.
Walmart's stock is up 18% in 2026, and the company has surpassed the $1 trillion market cap milestone. Walmart's continued growth, combined with its consistency and solid dividend, makes it a must-have for investors buying consumer staples stocks -- with a refreshing high-tech twist.
Costco's loyal members
Costco has created a growth flywheel that seems nearly indestructible. The membership model is extremely resilient and reliable, as more than 90% of customers renew each year. Costco's digital sales also grew 22.6% in its most recent quarter. This combination is fueling Costco's tremendous success.
Costco's stock does trade at a premium, with its trailing P/E ratio just above 50. The stock's dividend has been consistently increased and is now $1.47 per share each quarter. Costco's premium pricing is justified by its revenue predictability and its ability to sustain growth across economic cycles. Costco has plans to open 28 more locations this year alone.
PepsiCo is lowering prices and raising dividends
PepsiCo is another Dividend King on the list, meaning it has raised its dividend for more than 50 consecutive years. Pepsi's dividend yield is now an impressive 3.61%. For income-focused investors, Pepsi is a worthy addition to the portfolio.
What's most interesting about Pepsi right now is how it is going about luring back customers. The beverage and snack company recently lowered the prices of many of its products by up to 15% after activist investor Elliott Investment Management began pressuring the company. This bucks the industry trend and was a risky bet, but as of its most recent quarterly earnings, the strategic decisions seem to be paying off.
Pepsi's stock is also reasonably priced at 24 times trailing earnings and, with positive momentum, looks to be a strong growth-and-income investment for long-term investors. Pepsi itself is well diversified, boasting more than 200 brands under its umbrella.
Could Constellation make a comeback?
There's no doubt Constellation Brands is a riskier pick than the other companies listed above. However, there could be plenty of upside with Constellation. The company is not without its challenges, but those have largely been priced into the stock at this point.
In fiscal year 2026, Constellation generated $1.8 billion in free cash flow and used part of it to fund its dividend. The beverage company also repurchased about $1 billion in shares.
Most notably, famed investor Warren Buffett initiated and then continued to build Berkshire Hathaway's position in Constellation before retiring. The company is very reasonably priced and poised for growth as it focuses on the premium beer sector. As of this writing, Constellation's stock is still down 20% in the past 12 months, and has a very attractive forward P/E ratio just above 12.
If you're an investor looking for growth, income, or even potential upside, these four consumer staples stocks are hard to beat. Steady performance and compound growth are the hallmarks of these companies. Particularly in uncertain economic times, these consumer staples titans are a solid foundation for almost any portfolio.
Should you buy stock in Walmart right now?
Before you buy stock in Walmart, 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 Walmart 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 $490,864!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,216,789!*
Now, it’s worth noting Stock Advisor’s total average return is 963% — a market-crushing outperformance compared to 201% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of May 5, 2026.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, Costco Wholesale, and Walmart. 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 Consumer Staples Stocks to Buy in 2026

Key Points
Diageo’s stock was cut in half over the past year.
Its stock looks cheap, but it deserves its discount valuation.
Diageo (NYSE: DEO), one of the world's biggest producers of alcoholic beverages, was once a stable blue chip consumer staples stock. But over the past 12 months, its stock has declined nearly 30%. Over the past five years, its stock has been cut in half. Let's see why Diageo's stock plummeted -- and whether it's worth buying as the bulls look the other way.
What happened to Diageo?
Diageo sells more than 200 brands of spirits, beers, and non-alcoholic drinks across nearly 180 countries. Its top brands include Johnnie Walker, Crown Royal, Casamigos, Smirnoff, Don Julio, and Guinness. Its biggest and most important market is the United States, which accounted for 29% of its top line in fiscal 2025 (which ended last June).
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The U.S. was traditionally Diageo's top market for premium spirits. But over the past few years, its spirits sales in the U.S. cooled as consumers either drank less or shifted to cheaper brands. The tariffs against Europe and Latin America exacerbated that pressure. To make matters worse, U.S. retailers ordered too much tequila in 2022 and 2023 (expecting its pandemic-driven demand to continue), while smaller brands fragmented the already saturated market.
Diageo's overseas sales have also been a mixed bag. It's still growing in Latin America, Africa, and Europe, but its sales in Asia (especially China) are declining. As a result, its top sales declined in fiscal 2023 and fiscal 2024 before finally stabilizing in fiscal 2025.
Metric
FY 2023
FY 2024
FY 2025
U.S. Sales Growth
(1%)
(4%)
1%
Total Sales Growth
(5%)
(3%)
0%
But in the first half of fiscal 2026, Diageo's organic net sales fell nearly 3%, as its 7% drop in North America and an 11% decline in Asia Pacific (mainly due to its declining sales of Baijiu and other Chinese wine spirits) offset its steady growth in Latin America, Africa, and Europe.
For the full year, it expects its organic net sales to decline 2%-3%. Analysts expect its total net sales to decrease 3% in fiscal 2026 and 1% in fiscal 2027.
Can Diageo turn its business around?
To cushion that blow, Diageo reduced its quarterly dividend by 80% to $0.20 per share (a 1% forward yield) this February and began pruning its workforce.
CEO Dave Lewis, who took the helm at the start of the year, plans to implement additional cost-cutting measures, divest some of its weaker assets, realign its orders with market demand, and rebalance its pricing to stabilize its business. However, analysts still expect its adjusted EPS to decline 1% in both fiscal 2026 and fiscal 2027.
Diageo's biggest problems are tough to overcome. Its premiumization strategy in the U.S., which had worked for years, could be impossible to restart as alcohol consumption rates decline. As it cuts its prices, it will need to compete more aggressively with other struggling alcoholic beverage companies, such as Constellation Brands (NYSE: STZ).
But if Diageo stabilizes its U.S. business, works through the tequila market's messy inventory issues, and expands in its higher-growth emerging markets, its sales and profits might rise again. If that happens, its stock might be a bargain at 12 times forward earnings. Constellation, which faces similar existential challenges, also trades at 12 times forward earnings.
Where will Diageo's stock be in a year?
Diageo isn't down for the count yet, but it won't resolve its biggest issues or raise its dividend again within the next few quarters. Therefore, I expect its stock to either stagnate or sink lower over the next 12 months and underperform other blue chip consumer staples stocks.
Should you buy stock in Diageo Plc right now?
Before you buy stock in Diageo Plc, 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 Diageo Plc 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 $490,864!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,216,789!*
Now, it’s worth noting Stock Advisor’s total average return is 963% — a market-crushing outperformance compared to 201% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of May 5, 2026.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Brands and Diageo Plc. 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.

Diageo Stock Continues to Sink -- What Investors Need to Know

Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Constellation Brands Inc (Symbol: STZ), where a total volume of 9,734 contracts has been traded thus far today, a contract volume which is representative of approximately 973,400 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 45.2% of STZ's average daily trading volume over the past month, of 2.2 million shares. Particularly high volume was seen for the $160 strike call option expiring May 08, 2026, with 1,827 contracts trading so far today, representing approximately 182,700 underlying shares of STZ. Below is a chart showing STZ's trailing twelve month trading history, with the $160 strike highlighted in orange:
Block Inc (Symbol: XYZ) options are showing a volume of 20,836 contracts thus far today. That number of contracts represents approximately 2.1 million underlying shares, working out to a sizeable 43.2% of XYZ's average daily trading volume over the past month, of 4.8 million shares. Especially high volume was seen for the $80 strike call option expiring May 15, 2026, with 12,688 contracts trading so far today, representing approximately 1.3 million underlying shares of XYZ. Below is a chart showing XYZ's trailing twelve month trading history, with the $80 strike highlighted in orange:
And Fair Isaac Corp (Symbol: FICO) saw options trading volume of 1,841 contracts, representing approximately 184,100 underlying shares or approximately 42.6% of FICO's average daily trading volume over the past month, of 432,325 shares. Especially high volume was seen for the $800 strike put option expiring May 15, 2026, with 252 contracts trading so far today, representing approximately 25,200 underlying shares of FICO. Below is a chart showing FICO's trailing twelve month trading history, with the $800 strike highlighted in orange:
For the various different available expirations for STZ options, XYZ options, or FICO options, visit StockOptionsChannel.com.
Also see:
Warren Buffett Stock Picks
Top Ten Hedge Funds Holding FCFY
Dividend Stock Ideas
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Monday Option Activity: STZ, XYZ, FICO

Key Points
It may be time to lift a glass to Constellation Brands stock.
PepsiCo could draw in investors as it more closely aligns with consumer tastes.
Kimberly-Clark's acquisition of Kenvue could have investors seeing the company in a new light.
Investors tend not to think of consumer stocks as growth names. These companies often have conservative management, rarely matching the returns of higher-flying growth stocks, and in many cases, pay dividends.
Fortunately, some of these names have a track record of delivering long-term returns and will likely continue to do so. Knowing that, investors can buy these three consumer staples stocks and should earn significant returns by holding them for decades.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Constellation Brands
Constellation Brands (NYSE: STZ) is a leading alcohol company that has dealt with internal and external threats. Sales have suffered as consumers across generations have reduced alcohol consumption.
Also, while it distributes America's No. 1 beer, Modelo, the beer's ties to Mexico stoked worries about tariff threats. Internally, the company did not foresee the falling consumption patterns and relied too heavily on wine and spirit brands that did not perform well.
However, investors have priced these challenges into the stock, perhaps overly so. That prompted Warren Buffett to invest some of Berkshire Hathaway's cash into the stock before he retired, and this was likely a wise decision. Moreover, Constellation has divested some of its underperforming wine and spirit brands.
The divestiture was partially responsible for an 11% sales decline in fiscal 2026 (ended Feb. 28). Nonetheless, it generated $1.8 billion in free cash flow in that fiscal year. That allowed it to repurchase shares and fund its dividend. That payout, which has risen every year since 2015, pays investors $4.12 per share annually, a 2.6% cash return.
Furthermore, in fiscal 2027, the company forecasts net sales will remain steady at the midpoint. The stock has also risen 15% since the beginning of the year. Considering its P/E ratio of just 16, one could argue that this Warren Buffett stock is absurdly cheap right now.
PepsiCo
Like Constellation, PepsiCo (NASDAQ: PEP) provides a unique opportunity to investors as it adapts to evolving consumer tastes. Aside from its flagship cola, Mountain Dew, Gatorade, Doritos, and Quaker Oats are among the products under its umbrella.
In recent years, consumers have become increasingly leery of sugary drinks and processed foods, leading to a reduction in sales. PepsiCo has responded by changing the ingredients in many of its products and buying some brands associated with healthier offerings, such as Siete Foods.
Its recovery is showing some promising signs. In its fiscal first quarter (ended March 21), net revenue grew by nearly 9%, well above the 2% in fiscal 2025. Also, even though free cash flow was negative $406 million in fiscal Q1, it improved from year-ago levels. Investors should note that the free cash flow was nearly $7.7 billion in fiscal 2025.
That cash repurchased shares and supported its dividend, which has increased for 54 straight years. At $4.69 per share annually, it yields almost 3.7%.
Analysts forecast a 5% revenue increase in fiscal 2026, indicating its market pivot is working. Furthermore, its stock has risen by almost 10% this year, and at a P/E ratio of 24, it is likely not too late to invest in a probable recovery in PepsiCo stock.
Kimberly-Clark
Similar to PepsiCo, Kimberly-Clark (NASDAQ: KMB) has built its business around trusted brands. It owns Kleenex, Huggies, Cottonelle, and others. Also, its upcoming acquisition of Kenvue, which was once the consumer health division of Johnson & Johnson, will place more familiar brands like Tylenol and Listerine under its umbrella.
Over the last year, the stock has suffered amid rising input costs, expenses related to a company restructuring, and the $48.7 billion cost of acquiring Kenvue. In that time, the stock lost more than one-fourth of its value.
However, these moves could spark the beginnings of a recovery. In 2025, its net sales fell by 2%. Also, it generated $1.6 billion in free cash flow in that year, down by 35% amid the restructuring.
Share levels remained steady, though it is on track to continue funding the dividend that has risen for 54 consecutive years. At $5.12 per share annually, it yields about 5.1%, enough to pay investors while they wait for a recovery.
Analysts anticipate net sales growth of around 3%. Moreover, its P/E ratio has fallen to 16, a level near multiyear lows. Between that valuation and its high-paying, growing dividend, any positive news could spark a recovery in the stock.
Should you buy stock 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 $497,606!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,306,846!*
Now, it’s worth noting Stock Advisor’s total average return is 985% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 29, 2026.
Will Healy has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway and Kenvue. The Motley Fool recommends Constellation Brands and Johnson & Johnson. 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.