What to Watch With Constellation Brands Stock in 2026
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By Will Healy – Dec 14, 2025 at 3:50AM ESTKey PointsConstellation Brands is down nearly 35% year to date.Investors should not ignore the stock's attributes despite falling sales.These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: STZConstellation BrandsMarket Cap$26BToday's Changeangle-down(-1.43%) $2.14Current Price$147.41Price as of December 12, 2025 at 3:58 PM ETThe stock could experience the beginning of a surprise recovery.Things have continued to go wrong for Constellation Brands (STZ 1.43%), particularly over the last year. Rising tariffs have caused worries about the sales of its top beer brands, particularly Modelo, which is the U.S.'s No. 1-selling beer. Americans are also drinking less across the board, further reducing the company's sales. Amid such conditions, the alcohol producer and distributor has drawn a prominent investor in Warren Buffett's Berkshire Hathaway, which added shares despite being a net seller of stocks. The question now is whether the challenging conditions can play into investors' hands in 2026. Image source: Getty Images.
Where Constellation Brands stands In 2025, even as Buffett's team bought the stock, conditions had deteriorated. In the first half of fiscal 2026 (ended Sept. 30), net sales fell more than 10% to $5 billion. During that time, the company managed to earn $982 million. While that was an increase, the only reason earnings rose was because Constellation experienced a goodwill impairment of nearly $2.3 billion in the first half of 2024.Advertisement Amid such conditions, the stock has lost almost 35% of its value over the last year. ExpandNYSE: STZConstellation BrandsToday's Change(-1.43%) $-2.14Current Price$147.41Key Data PointsMarket Cap$26BDay's Range$147.30 - $151.1052wk Range$126.45 - $240.32Volume93KAvg Vol2.7MGross Margin51.08%Dividend Yield2.76% What to look for in 2026 Nonetheless, in that state, the stock appears oversold, setting the stage for a possible recovery in 2026. Buffett's interest in the stock has little to do with it, though the team at Berkshire may have keyed on these conditions. First is Constellation's valuation. The aforementioned goodwill impairment likely raised its price-to-earnings (P/E) ratio to 21, but a forward P/E of 13 is cheap by any measure. Moreover, the company has paid a dividend and increased it annually since 2015. The current annual payout of $4.08 per share offers a dividend yield of 2.8%, far above the 1.1% average of the S&P 500. Additionally, Constellation is on track for between $1.3 billion and $1.4 billion in free cash flow in fiscal 2026. That can cover its yearly dividend cost of approximately $725 million. It can also finance share repurchases. Since the outstanding share count fell by more than 3% in the last year alone, share prices stand a higher chance of rebounding in 2026. Constellation Brands stock in 2026 The current state of Constellation Brands could begin to stoke a recovery in the stock in 2026. Admittedly, a trend away from alcohol consumption and the rising tariffs rightly concern investors. However, that also shows that alcohol consumption is not going away. It is merely shrinking, and the stock's 40% decline indicates that investors may have overreacted. By buying Constellation stock now, investors get in at a low valuation and benefit from a high and rising dividend return. That payout could increase demand for shares at a time when buybacks have reduced the number of available shares. Thus, even if sales struggle in the near term, Constellation can still turn into a market-beating growth and income stock in 2026.About the AuthorWill Healy is a contributing Motley Fool stock market analyst covering technology and consumer goods industries.
Before The Motley Fool, Will was a freelance writer covering stocks and personal finance for MSN Money, Yahoo! Finance, and Nasdaq. Earlier in his career, he was an expert in geographic information systems, applying spatial and IT skills to perform RF and demographic analysis in the telecom industry. He holds a bachelor’s degree in journalism from Texas A&M University and an MBA in finance and strategy from the University of Texas at Dallas.TMFWillHealyX@HealyWritingRead NextDec 12, 2025 •By John BallardHow Has Constellation Brands (STZ) Stock Done For Investors?Dec 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 Reasons