What changed
$STZ β BUY π
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 Ita
π― Q1 FY26 | Rev $2B | EPS $1.90 vs $1.71 π’
π‘ Consensus expects persistent organic sales declines and margin pressure, underestimating the earnings power of STZβs beer franchise and the impact of cost measures; actual EPS of $1.90 vs $1.71 estimate demonstrates resilience, and FY27 guidance implies double-digit EPS growth from FY26 comparable base despite flat-to-down sales.
π Reward/Risk: 1.7:1
π’ Business Quality: 7/10 - Leading beer portfolio (Modelo, Corona) with pricing power and high margins; offset by structurally declining wine/spirits segment with impairment risk.
π Valuation: cheap β TTM adj.
π Our read: BUY. Full analysis β
https://stockduty.xyz/s/STZ0620
Also in play: $DEO $BUD $ABEV $TAP $STZ $BALL
Why it matters
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 Ita