Constellation Brands, Inc. (STZ) is one of the biggest beverage alcohol companies in the world, known for popular beer, wine, and spirits brands sold across the United States and several international markets. Founded in 1945 and headquartered in Rochester, New York, the company owns major beer labels like Corona and Modelo, alongside premium wine and spirits brands including Kim Crawford, Robert Mondavi, and Casa Noble tequila.
Constellation supplies its products through distributors, retailers, and beverage agencies, making it a major player in the global alcohol industry. Currently, its market capitalization stands at around $25.7 billion.
More News from Barchart
However, shares of the wine, liquor and beer giant have struggled. STZ stock has fallen 19.1% over the past 52 weeks, sharply underperforming the broader S&P 500 Index ($SPX), which gained 28% during the same period. In 2026, the stock is in the green, up 8.4% on a year-to-date (YTD) basis, but it still trails SPX’s 9.2% rise.
Narrowing the focus, STZ also underperformed the State Street Consumer Staples Select Sector SPDR ETF’s (XLP) 4.3% rise over the past 52 weeks and 9.2% gains in 2026 so far.
The uneven performance in STZ stock reflects the changing landscape in the alcohol industry. After strong demand during the pandemic years, spending on premium wine and spirits has started normalizing, while inflation and tighter household budgets have also pressured consumers. The company has additionally faced weaker purchasing trends among younger drinkers and its important Hispanic customer base, creating pressure on sales growth.
Still, STZ has managed to stay positive in 2026 thanks to the continued strength of its beer business. Brands like Corona and Modelo Especial continue gaining market share in the U.S., helping support profits and cash flow.
Investors also reacted positively to the company’s Q4 2026 earnings in April. Even though revenue and earnings declined year over year, both figures still came in ahead of Wall Street expectations, driven largely by resilient beer demand and strong operating margins. Constellation’s long history of paying dividends has also helped keep long-term investors interested in the stock.
Looking ahead to fiscal 2027, Wall Street analysts tracking the company expect adjusted EPS to rise marginally YOY to $11.90, and then surge by another 4% annually to $12.38 in fiscal 2028. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on one other occasion.
Analysts are overall optimistic with a dash of caution. The overall consensus rating on STZ currently sits at “Moderate Buy.” Among 24 analysts covering the stock, 11 recommend a “Strong Buy,” three have a “Moderate Buy,” eight analysts are playing it safe with a “Hold,” one has a “Moderate Sell, and one analyst is outright skeptical, advising a “Strong Sell.”
The configuration has turned slightly more bullish compared to two months ago, with the stock carrying an additional “Strong Buy” rating.
In April, TD Cowen analyst Robert Moskow upgraded STZ stock to a “Buy” rating and raised the price target from $142 to $190. This suggests 27.1% upside potential.
STZ stock’s mean price target of $179.36 implies upside potential of 20%. The Street-high price target of $223 implies the stock could rise as much as 49.2% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com