Constellation Brands (STZ) declined significantly from its early-2024 peak. Analysts now suggest the stock presents a rebound opportunity.
The stock trades at an appealing valuation of 14 times projected earnings. This multiple is based on the fiscal 2026 EPS projection of $11.61. This valuation makes STZ more affordable than many consumer staples peers. The recent downturn increased the forward-looking dividend yield to 2.5%.
Despite a broader decline in alcohol consumption, Constellation's premium brands are gaining traction. Key brands include Modelo and Corona. These premium products account for about 90% of company revenue.