STZ Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Constellation Brands Inc (STZ) is not a strong buy at this moment for a beginner, long-term investor with $50,000-$100,000 available for investment. While the company shows some stability in gross margins and has received mixed analyst ratings, the recent financial performance, technical indicators, and lack of strong positive catalysts suggest a cautious approach. Holding the stock or waiting for better entry points would be more prudent.
The MACD is negatively expanding, indicating bearish momentum. RSI is neutral at 50.593, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). However, the stock is trading near its key support level (S2: 152.884), which could indicate potential downside risk. Overall, the technical indicators suggest a cautious stance.
The appointment of Nicholas Fink as the new CEO could bring fresh strategic direction. Gross margin increased by 2.98% YoY, indicating some operational efficiency improvements. Analysts from Bernstein and Wells Fargo see potential recovery opportunities.
The MACD is bearish, and the stock is near a key support level, increasing the risk of further downside. Analyst sentiment is mixed, with some downgrades and lowered price targets. The options market sentiment is bearish, with a high put-call volume ratio.
In Q3 2026, revenue dropped by 9.78% YoY, net income fell by 18.36% YoY, and EPS declined by 15.04% YoY. However, gross margin improved by 2.98% YoY to 53.9%, showing some operational strength amidst declining top-line and bottom-line figures.
Analyst sentiment is mixed. UBS and Bernstein maintain Buy and Outperform ratings, respectively, with price targets of $168 and $197. Citi and Jefferies have Neutral and Hold ratings, with price targets of $155 and $154, respectively. Some analysts highlight potential recovery, while others express concerns about prolonged challenges in the Hispanic consumer market and top-line growth.
