Is Constellation Brands Stock Underperforming the Dow?

Written by Emily J. Thompson, Senior Investment Analyst

CCU+1.2%

STZ-1.9%

Source: NASDAQ.COM

Updated: Mar 12 2025

0mins

Source: NASDAQ.COM

Company Overview and Performance: Constellation Brands, Inc. is a large-cap beverage company with a market cap of $34.2 billion, known for brands like Corona and Modelo. However, its stock has significantly underperformed, declining 32.6% from its 52-week high due to subdued consumer spending and disappointing earnings.
Market Outlook: Despite recent struggles, analysts maintain a "Moderate Buy" consensus rating for STZ, with a mean price target suggesting a potential upside of 28.3% from current prices, indicating cautious optimism about the company's future prospects.

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CCU

$15.13+Infinity%1D

Analyst Views on CCU

Wall Street analysts forecast CCU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CCU is 11.00 USD with a low forecast of 11.00 USD and a high forecast of 11.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

1 Analyst Rating

0 Buy

0 Hold

1 Sell

Moderate Sell

Current: 14.950

Low

11.00

Averages

11.00

High

11.00

Current: 14.950

Low

11.00

Averages

11.00

High

11.00

Scotiabank

Outperform -> Sector Perform

downgrade

$7,000

2025-05-08

Reason

Scotiabank

Price Target

$7,000

AI Analysis

2025-05-08

downgrade

Outperform -> Sector Perform

Reason

Scotiabank downgraded CCU to Sector Perform from Outperform with an unchanged price target of CLP 7,000. CCU reported sales and EBITDA that were roughly in line with consensus, but which "fell quite short of our numbers" and the quality was "low," the analyst tells investors. CCU's numbers were "a significant departure from the excellent posts we've been seeing from other industry peers in the Southern Cone," making the firm think that CCU is losing ground to the competition, the analyst added.

About CCU

Compania Cervecerias Unidas SA is a diversified beverage company operating principally in Chile, Argentina, Bolivia, Colombia, Paraguay and Uruguay. The Company operates as a brewer, soft drinks producer, water and nectar producer, wine producer and pisco distributor. The Company's segments include Chile, International Business and Wine. The Company carries a portfolio of products, which includes a range of brands of alcoholic and non-alcoholic beer, with Cristal as its primary brand in Chile. In addition, it produces and distributes Heineken beer; distributes Sol beer and Budweiser beer, and distributes and produces Kunstmann and Austral beer in Chile. The International Business segment includes operations in Argentina, Paraguay and Uruguay. The Company, through Vina San Pedro Tarapaca S.A. (VSPT), produces and markets a range of wine products for the domestic and mainly the export market.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.