How Has Constellation Brands (STZ) Stock Done For Investors?

By John Ballard – Dec 12, 2025 at 7:10AMKey PointsConstellation Brands (STZ) stock has underperformed the S&P 500 index, declining 41% over the past 12 months.Surveys show customers growing more concerned over personal finances, which is weighing on demand.The stock's decline has brought its dividend yield up to an attractive 2.87%.These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: STZConstellation BrandsMarket Cap$26BToday's Changeangle-down(0.70%) $1.04Current Price$149.55Price as of December 11, 2025 at 4:00 PM ETThis top beer stock is undervalued after a brutal sell-off this year.Constellation Brands (STZ +0.70%) has a long record of paying dividends and delivering returns to shareholders. However, the stock has moved in the opposite direction from the S&P 500 index over the past two years. Over the last 12 months, the stock has declined by 41%, compared to a 12% gain for the S&P 500. Sales of the company's top beer brands, such as Corona and Modelo, have suffered due to economic pressure on its core customers. Still, the near-term headwinds could provide investors with an excellent opportunity to buy shares at attractive valuations. Image source: Getty Images. What happened to Constellation Brands Constellation has a strong portfolio of wine, spirits, and beer brands, with the latter accounting for the majority of its annual revenue. It holds the distribution rights to some of the most popular imported brands in the U.S., including Corona, Modelo Especial, and Pacifico. Lower sales of these imports contributed to a 15% year-over-year decline in the company's total revenue last quarter. A key factor in the decline has been a weak consumer spending environment, in which 80% of surveyed consumers expressed concern about their personal finances. However, management continues to invest in long-term expansion because it believes the recent sales declines are temporary. Nothing has changed the value of its brands, as Pacifico, Corona, and Modelo have retained top market share positions in the beer category. One of the ways the company is investing to benefit shareholders is by selling off lower-end wine and spirits brands to focus on more profitable opportunities in premium wines and other segments. It recently sold off its Svedka vodka brand and related assets for $409 million. The proceeds from asset sales are funding share buybacks, debt repayments, and investments in its beer brands, which are expected to drive long-term growth in earnings per share.Advertisement ExpandNYSE: STZConstellation BrandsToday's Change(0.70%) $1.04Current Price$149.55Key Data PointsMarket Cap$26BDay's Range$148.60 - $151.5152wk Range$126.45 - $241.69Volume6.4KAvg Vol2.7MGross Margin51.08%Dividend Yield2.72% Focusing on business fundamentals can lead to big payoffs When the stocks of profitable companies decline, it can create a great buying opportunity ahead of a recovery in the underlying business. Obviously, investors who bought shares last year are underwater now, but the stock could rebound over the next few years if revenue stabilizes and begins to grow again. The stock was recently trading at just 13.7 times free cash flow. The business generated more than $1.8 billion in free cash flow over the last four quarters, indicating Constellation remains capable of generating healthy profits even when sales are down. This cash flow is more than adequate to fund dividend payments. Over the last year, it paid 39% of its free cash flow in dividends. With a stock offering an above-average forward dividend yield of 2.87%, Constellation Brands is a solid value stock to consider buying heading into 2026.About the AuthorJohn Ballard has been a contributing writer at The Motley Fool since 2016, covering consumer goods and technology stocks. He holds a bachelor’s degree in business administration with a focus in real estate finance from the University of Arkansas at Little Rock.TMFRazorbackRead NextDec 3, 2025 •By Bryan WhiteConstellation Brands: A High-Quality Business Facing Temporary Problems, or Something Worse?Nov 30, 2025 •By Eric VolkmanRead This Before Buying Constellation Brands StockNov 29, 2025 •By James BrumleyConstellation Brands Stock Sell-Off: Should You Buy the Dip?Nov 22, 2025 •By James Brumley1 Magnificent S&P 500 Dividend Stock Down 52% to Buy and Hold ForeverNov 16, 2025 •By Will HealyInvestors Should Raise a Glass to Constellation Brands Stock for These 3 ReasonsOct 31, 2025 •By David Jagielski, CPAConstellation Brands Stock Hasn't Been Trading This Low Since 2020. Is Now the Time to Buy?