Constellation Brands Inc. (NYSE:STZ) stock has experienced a notable downturn, touching a 52-week low of $224.72. According to InvestingPro data, the company maintains a FAIR financial health score, with analysts setting price targets ranging from $255 to $325. This latest price level reflects a challenging period for the beverage giant, known for its portfolio of beer, wine, and spirits. While the stock has declined recently, the company maintains strong fundamentals with a solid 51% gross profit margin and has consistently raised its dividend for 10 consecutive years. Over the past year, the company's shares have seen a decline of 5.32%, indicating a period of bearish sentiment among investors. The 52-week low serves as a critical marker for the company, as it navigates through market fluctuations and seeks to regain its footing in a competitive industry. InvestingPro analysis suggests the stock is currently fairly valued, with multiple additional insights available through their comprehensive Pro Research Report.
In other recent news, Constellation Brands has been a focal point of recent developments. The company is expected to maintain its FY25 beer guidance, according to Citi, which has reiterated a Buy rating. Citi's analysis anticipates a 4-5% depletion in the company's beer for the third quarter of fiscal 2025. Constellation Brands has also highlighted a strategic shift towards mass and club channels, which may cause discrepancies between reported depletions and scanner data.
The company is likely to adjust its wine and spirits guidance due to the potential sale of Svedka. Bernstein, another financial firm, has also maintained an Outperform rating for Constellation Brands, highlighting the potential benefits of its strategic moves, especially in its Wine & Spirits segment.
Constellation Brands has announced the divestiture of its Svedka vodka brand to Sazerac, aligning with the company's strategy to focus on the premium segment of the wine and spirits market. This move is seen as a significant step forward, and both Citi and Bernstein have expressed a positive outlook on this sale.
The company has also seen a reshuffle in its leadership, with the appointment of E. Yuri Hermida as the new Executive Vice President, Chief Growth & Strategy Officer, and Mallika Monteiro transitioning to the role of Executive Vice President and Managing Director for the company's beer brand portfolio. These are the recent developments for Constellation Brands.
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