The key points from a range of reports indicate a mixed outlook for Constellation Brands (STZ). The company has been warning of potential material hits from tariffs affecting their Mexican beer sales, resulting in their stock sinking. This negative sentiment is echoed by Jim Cramer who criticized the company's decision-making while other analysts downgraded the company to neutral. Yet, they continue to be named as one of the best FMCG and alcohol stocks to buy by some hedge funds and analysts.
Over the past 20 years, an investment in Constellation Brands would have given considerable return. However, their stock has tanked significantly this year, raising questions about its value. Their Q3 2025 earnings fell short of projections while their Q4 revenues also missed the mark. Despite the headwinds, buyers have been advised to invest on weakness. The company's shift towards the beer business is said to be fueling earns growth. The Q3 earnings saw an EPS beat but a revenue miss.
Despite the stock dipping, the company maintains a strong free cash flow and has cut its FY25 outlook. A major concern is the continued fall of their wine and spirits business.
Constellation Brands STZ News Analytics from Thu, 26 Sep 2024 07:00:00 GMT to Sat, 08 Feb 2025 22:12:20 GMT - Rating 0 - Innovation -4 - Information 5 - Rumor -6
