Constellation Brands (STZ) faces scrutiny following a new analyst report issued on January 12, 2026. The analysis assigns the company a "Sell" rating, arguing the stock represents a "value trap."
The report cites several fundamental challenges. These include declining revenues, significant debt, and broader secular headwinds impacting alcohol consumption.
Although third-quarter results beat low expectations, revenues still fell 9.8% year-over-year. Furthermore, the company lowered its full-year guidance.
The analysis concludes that the persistent no-growth outlook and high leverage limit investment appeal. Better opportunities exist until consumption trends stabilize or the stock reaches a much lower valuation.