Constellation Brands (1STZ) AI Stock Analysis

2 Followers

Constellation Brands

(Milan:1STZ)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Beer Brand Strength and Share GainsThe beer portfolio combines meaningful scale with several brands gaining share, supporting durable consumer relevance and distribution expansion. Pacifico’s top-10 position and reported growth provide a tangible platform for future volume gains, while broader beer outperformance reinforces competitive strength.

Negative Factors

Earnings and Revenue VolatilityUneven annual revenue and repeated loss years indicate that strong margins have not consistently translated into stable bottom-line results. This volatility can make planning and capital allocation less predictable and leaves future earnings more dependent on execution and category conditions.

Constellation Brands (1STZ) vs. iShares MSCI Italy ETF (EWI)

Market Cap: EUR 24.47B
Dividend Yield: 2.78%
Average Volume (3M): 35
Price to Earnings (P/E): 13.0
Beta (1Y): 0.10
Revenue Growth: -9.42%
EPS Growth: 59.66%
Country: Italy
Employees: 9,400
Sector: Consumer Defensive
Sector Strength: 62
Industry: Beverages - Alcoholic

Constellation Brands Business Overview & Revenue Model

Company Description

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 offers beer under the Corona Extra, Corona Familiar, C...

Constellation Brands Earnings Call Summary

Earnings Call Date:Oct 06, 2026(Q2-2027)|% Change Since:30.73%|Next Earnings Date:Jan 07, 2027

Earnings Call SentimentPositive

The call was strongly optimistic. Management reported a quarterly beat, reiterated fiscal 2027 guidance, cited improving September trends, leading share gains, healthy distributor inventories, strong growth from Pacifico, Victoria, Mi CAMPO, and SpikedAde, and substantial capital allocation flexibility. The main challenges were seasonal second-half margin pressures, higher planned marketing and SG&A spending, flat Q2 price/mix, Corona's performance still being below expectations, and a future depreciation headwind from Veracruz. Highlights significantly outweighed the lowlights.

Positive Updates

Quarterly Results Beat Expectations and Guidance Reiterated

Management stated that fiscal 2027 second-quarter results beat expectations and reiterated comparable EPS guidance of $11.20 to $11.90 per share. If the positive September trends continue, the company expects to land at the high end of that range.

Negative Updates

First-Half Inventory Rebuilding Created Channel Inefficiencies

Management said inventories had been overcorrected in fiscal 2026 and the company entered fiscal 2027 too light. This tested the lower limits of days on hand, created channel inefficiencies, required work to move product around, and contributed to distributor order backlogs and the need to avoid out-of-stocks.

Company Guidance

Constellation Brands reiterated fiscal 2027 guidance for comparable EPS of $11.20 to $11.90 per share and said that, if the positive September trends continue, it would expect to land at the high end of that range; it said there would need to be a real reversal in trends to contemplate the low end. For the full year, ships and depletes are expected to track within 99% of each other. In the second half, beer margins are expected to be 34.5% to 35.5% of operating margins, SG&A should be around 7%, and marketing should be about 10% of net sales, with the third quarter above 11%. Veracruz is now expected to come online in the first part of fiscal year '28, with annualized depreciation of about $75 million, or about 90 basis points of margin headwind. Pricing is expected to be somewhere between 1% to 2%, generally speaking, over the long run, with the company intending to be at the lower end of that range this year; most commodities and currencies are hedged at 90% or over 90%, with diesel fully hedged for the year.

Constellation Brands Risk Analysis

Constellation Brands disclosed 25 risk factors in its most recent earnings report. Constellation Brands reported the most risks in the "Production" category.

Production - Risks related to the company’s ability to manufacture goods and services

Latest Risks Added

1 New Risk

1.President and Chief Executive Officer transitionQ1, 2026

Constellation Brands Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

IT:1STZ against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABEV	72Outperform	$43.49B	15.34	17.63%	4.43%	7.66%	8.00%
BUD	72Outperform	$165.92B	13.58	13.31%	1.61%	6.60%	31.61%
BF.A	70Outperform	$13.96B	19.43	17.80%	2.99%	-0.18%	-13.00%
DEO	64Neutral	$55.27B	32.23	15.52%	2.00%	-3.59%	-26.73%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
TAP	56Neutral	$7.43B	8.39	8.78%	4.83%	-1.58%	―

* Consumer Defensive Sector Average

Performance Comparison

IT:1STZ and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IT:1STZ	Constellation Brands	131.00	19.68	17.68%
BUD	Anheuser-busch Inbev	83.85	22.53	36.75%
BF.A	Brown Forman Inc A	30.92	4.39	16.55%
DEO	Diageo	99.99	9.02	9.92%
TAP	Molson Coors Beverage	39.56	-4.09	-9.37%
ABEV	Ambev SA	2.73	0.32	13.09%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Constellation Brands AI Stock Analysis