Constellation Brands: A High-Quality Business Facing Temporary Problems, or Something Worse?

Constellation Brands (NYSE: STZ) has spent more than a decade building one of the best growth stories in the alcoholic beverage industry. The company owns the #1 beer brand in the U.S., with Modelo Especial and a top-five brand, Corona Extra. That success has translated into 15 straight years of volume growth and industry-leading operating margins.But fiscal 2026 has been rough. The stock is down 40% year to date as the company battles aluminum tariffs, a pullback among Hispanic consumers who represent half its customer base, and the first volume declines in over a decade. In its most recent quarter, revenue dropped 15% year over year to $2.5 billion , and management slashed full-year guidance in September .Yet look past the near-term pain, and we might have a high-quality business selling at an attractive price. Constellation still maintains best-in-class operating margins around 40% in its beer segment, and even with the drag from its small wine and spirits business, consolidated operating margins of 34% remain well ahead of Anheuser-Busch InBev's (NYSE: BUD) 26% and Molson Coors' (NYSE: TAP) 15%. Meanwhile, its core brands continue to hold their dominant position as the company gains market share, even as volumes decline. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool