Victor, New York-based Constellation Brands, Inc. (STZ) is one of the largest beer companies and a leading, high-end wine company in the U.S. With a market cap of $45.6 billion, Constellation Brands’ beverages are marketed in over 100 countries worldwide.

Companies worth $10 billion or more are generally described as "large-cap stocks," Constellation Brands fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the brewing industry. It has a strong portfolio of high-quality brands, including Corona, Modelo Especial, Robert Mondavi, Kim Crawford, Meiomi, and SVEDKA Vodka.

Despite its strength, Constellation Brands has slipped 9.6% from its 52-week high of $274.87 achieved on Apr. 11. STZ dipped marginally over the past three months, underperforming the S&P 500 Index’s ($SPX) 2.3% gains during the same time frame.

Over the longer term, STZ has lagged behind SPX. STZ has dipped 3.2% over the past 52 weeks and gained 3.8% in 2024, underperforming SPX’s 22.7% gains over the past year and 14.7% returns on a YTD basis.

To confirm the recent bearish trend, STZ has traded below its 50-day moving average since late April and below its 200-day moving average since mid-July with some fluctuations.

Shares of Constellation Brands rose 3.5% after the release of its Q1 earnings on Jul. 3. The company’s net sales grew 5.8% year over year growth to $2.7 billion. Demonstrating notable operational efficiency, Constellation Brands cut its selling, general, and admin expenses by 6.3% to $462.2 million. This translated into a remarkable 247.8% surge in comprehensive income attributable to shareholders, totaling $868 million. Additionally, its EPS of $3.57 surpassed the consensus estimates by 3.2%.

The Boston Beer Company, Inc. (SAM), Constellation Brands’ competitor, has substantially underperformed STZ. SAM has declined 26.8% over the past 52 weeks and 20.6% in 2024.

Among the 19 analysts covering the STZ stock, the consensus rating is a “Moderate Buy.” The mean price target of $298.89 represents a 19.1% potential upside from current price levels.

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On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.