Constellation Brands Stock: Is STZ Underperforming the Consumer Defensive Sector?
With a market cap of $30.6 billion, Constellation Brands, Inc. (STZ) produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, and internationally. Founded in 1945, the Rochester, New York-based company provides its products to wholesale distributors, retailers, on-premise locations, and state alcohol beverage control agencies.
Companies worth $10 billion or more are generally described as "large-cap stocks." STZ fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the Beverages - Brewers industry. STZ benefits from offering various world-famous beverage brands, including Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Kim Crawford, Meiomi, Mount Veeder, Ruffino, SIMI, My Favorite Neighbor, and more.
However, the company has pulled back 35.6% from its 52-week high of $265.70, recorded on June 24 last year. Shares of STZ have fallen 8.1% over the past three months, underperforming the Consumer Staples Select Sector SPDR Fund’s (XLP) 1.5% decline over the same time frame.
Longer term, STZ stock is down 22.6% on a YTD basis, significantly lagging behind XLP’s 3.8% rise. Moreover, shares of the company have tanked 31.8% over the past 52 weeks, compared to XLP’s 5.1% return over the same time frame.
To confirm its downtrend, STZ has been trading below its 200-day moving average since early October and under its 50-day moving average since late May.
STZ stock surged 7.3% following the release of its Q4 earnings on Apr. 9. The company reported a 1.2% year-on-year increase in its net sales, which amounted to $2.2 billion and beat the Wall Street estimates. Moreover, its free cash flow margin came in at 14.4%, up from 3.6% in the same quarter last year. STZ’s adjusted EPS for the quarter came in at $2.63 and surpassed the consensus estimates by 15.4%.
Its peer, Molson Coors Beverage Company (TAP), has declined 9.1% in 2025 and has grown marginally in the past 52 weeks, outperforming the stock.
Among the 22 analysts covering the STZ stock, the consensus rating is a “Moderate Buy.” Its mean price target of $213.65 suggests a 24.8% upside potential from current price levels.
On the date of publication, Kritika Sarmah 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.