Stock Price & Analysis

Analysis and Insights

Based on the provided data and analysis, here is a concise recommendation:

Buy STZ Stock.
STZ is undervalued with a forward P/E of 12.5 and offers a stable dividend yield of 2.27%. Recent market corrections present a buying opportunity.

The price prediction for STZ stock in 2025 is approximately $200. This forecast is based on analyst downgrades citing beer sales slowdown, Hispanic consumer weakness, and tariff risks.

The S1 support level for STZ Stock is $178.24 ,The R1 resistant level for STZ Stock is $185.86.

As of the end of day on 2025-04-02, the price of STZ Stock was $179.158.

The target price for STZ Stock according to analyst rating is 228.63, with the highest price target at 289.00 and the lowest at 180.00. Analysts have a Moderate Buy rating on STZ Stock overall.

The market cap of STZ is $33.0B.

Analysis and Insights

Valuation Metrics:

Constellation Brands (STZ) currently trades at a forward P/E ratio of 12.5, which is below its five-year average of 19, suggesting the stock may be undervalued. Its EV/EBITDA ratio of 14.16 is also below historical averages, further indicating undervaluation. The price-to-sales (P/S) ratio of 4.55 and price-to-book (P/B) ratio of 4.45 are similarly below their respective historical averages, reinforcing the undervaluation thesis.

Dividend Yield and Financial Health:

STZ offers a dividend yield of 2.27%, higher than the S&P 500's average of 1.3%, demonstrating strong cash generation. The company has consistently grown its dividend, with a 6% annual increase over the past five years, and its free cash flow comfortably covers dividend payments.

Market Sentiment and Analyst Views:

Despite recent underperformance, with STZ declining 29.3% over the past 52 weeks, analysts maintain a "Moderate Buy" consensus rating with a mean price target of $237.61, representing a 28.3% upside. This reflects optimism in the company's ability to recover and grow.

Technical Trends:

STZ is trading below its 200-day moving average but above its 50-day moving average, indicating potential stabilization after recent declines. The stock's valuation multiples and dividend yield make it attractive for long-term investors seeking value and income.

Conclusion:

STZ appears undervalued based on its lower valuation metrics and higher dividend yield compared to historical averages and peers. While near-term challenges exist, the stock's attractive valuation and analyst optimism suggest it is not overvalued.

Constellation Brands, Inc. is an international beverage and alcohol company. The Company is a producer and marketer of beer, wine, and spirits with operations in the United States, Mexico, New Zealand, and Italy. Its segments include Beer, Wine and Spirits, and Canopy. It sells a number of brands in the import and craft beer categories, including Corona Extra, Corona Light, Modelo Especial, Corona Premier, Victoria, Pacifico, and others. It offers a portfolio of wine and spirits brands, which include Cook’s California Champagne, Mount Veeder, My Favorite Neighbor, Casa Noble, Mi CAMPO, Kim Crawford, Ruffino, Robert Mondavi Winery, Copper & Kings, and others. The Canopy Equity Method Investment makes up the Canopy segment. It operates over five distilleries in the United States for the production of its spirits; two facilities for High West whiskey, one facility each for Copper & Kings American brandies, Nelson’s Green Brier bourbon and whiskey products, and Austin Cocktails.

The price prediction for STZ stock by 2030 is $220. This forecast is based on expected beer sales growth and the company's strong brand portfolio, despite current challenges like beer sales slowdown and Hispanic consumer weakness.

STZ has a total of 10700 employees.