Constellation Brands Trades at Deep Discount as Beer Strength Meets Wine Drag

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Summary · why it matters

Constellation Brands shares trade at 10.97 times forward earnings, a steep discount to the S&P 500's 21.2 times and the stock's own five-year median of 18.6 times, reflecting both value appeal and operational warning signs. The stock has fallen 23.4% over the past 12 months, pushing it near the low end of its five-year valuation range. Beer remains the core support, generating about 93.8% of consolidated net sales in the first quarter of fiscal 2027, with net sales rising 2% to $2.28 billion. However, the Wine and Spirits segment posted a comparable operating loss of $1.1 million, and management's full-year organic net sales growth outlook ranges from a 1% decline to a 1% gain for both Beer and Wine and Spirits. The company carries a Zacks Rank of 4, equivalent to a Sell, alongside a Value Score of B and a Growth Score of C.

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