Latest news with #Pacifico
Yahoo
10-07-2025
- Business
- Yahoo
Tariffs Are Rocking This Dividend Stock, But Analysts Still Think It's a ‘Buy'
In March 2025, the U.S. government imposed a 25% tariff on imported aluminum before raising levies to 50% in June. This creates new challenges for companies that depend on metal packaging, such as for companies that sell canned sodas and beers. Constellation Brands (STZ), the $30.4 billion company behind big names like Corona, Modelo, and Kim Crawford, is feeling the pressure more than most. Constellation has dropped 35% from its 52-week high, falling behind the rest of the consumer defensive sector. The latest quarterly report revealed the significant impact of these tariffs, with revenue down 6% year-over-year to $2.52 billion. Up Nearly 20% in a Month, Is This Turnaround Dividend Stock Still a Buy in July? 3 Dividend Kings You'll Wish You Bought Before 2025 Ends Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Yet, despite the near-term headwinds, analysts remain notably bullish on Constellation's prospects as a resilient dividend payer. What's driving their optimism, and does this dividend stock still deserve a place in your portfolio? Let's find out. Constellation Brands (STZ) is a major player in the beverage industry, known for its popular beer, wine, and spirits brands. Even with this approach, the stock has struggled, dropping more than 32% over the past year and nearly 23% since the start of the year as investors worry about rising costs and weaker earnings. This caution shows up in the numbers, with Constellation's forward P/E at 13.5x, which is lower than the sector average of 16.62x, suggesting the stock is trading at a discount, likely because the market expects more challenges ahead. The company's recent financial results show why investors are concerned. In the first quarter of fiscal 2026, net sales fell 6% to $2.52 billion. Operating income decreased 24% to $714 million, and net income declined sharply by 41% to $516 million, as aluminum tariffs and higher costs eroded profits. On the bright side, free cash flow rose 41% to $444 million, driven by the timing of brewery investments, and the company continued to buy back shares, returning $381 million to shareholders through June. Constellation Brands isn't just sitting back while tariffs make things tough. The company recently sold off its mainstream wine brands to focus on higher-growth, higher-margin labels, shifting its attention to wines mostly priced above $15. This move shows Constellation is betting that people want better quality, not just more options. Its beer business is now the main driver, accounting for over 80% of total sales. Modelo Especial, which is now the top-selling beer in the U.S., along with Corona and Pacifico, is expected to help push beer sales up by as much as 3% in fiscal 2026. The company is also looking outside of alcohol, putting money into Hiyo, a non-alcoholic drink brand, to catch the growing interest in alcohol-free options. This helps Constellation reach new customers and makes the business less dependent on any one part of the market. These choices help support Constellation's dividend, even while profits are under pressure. The current yield is 2.4%, backed by a forward payout ratio of 29.8% and five straight years of dividend increases. Its yield is above the consumer staples average of 1.89%, and its steady approach to returning money to shareholders suggests its dividend still has room to grow. Heading into the second half of the year, Constellation has set its fiscal 2026 earnings outlook between $12.07 and $12.37 per share and is sticking with its targets for operating cash flow of $2.7 billion to $2.8 billion and free cash flow of $1.5 billion to $1.6 billion. Even though the company is still dealing with the hit from aluminum tariffs, some of Wall Street's biggest names are standing by their positive calls. RBC Capital's Nik Modi has kept his 'Buy' rating and a price target of $233, implying 35% upside. Jefferies has also upgraded the stock from 'Hold' to 'Buy' and raised its price target to $205, saying the stock looks too cheap right now to ignore. This positive view is shared by analysts across the board. The 22 analysts surveyed rate Constellation a consensus 'Moderate Buy,' and the average price target sits at $205.95. This implies upside potential of 19% from here. Despite the sting from aluminum tariffs and a rough patch in earnings, Constellation Brands is showing the kind of resilience that keeps analysts in its corner. With a sharpened focus on premium, high-margin products and a dividend that's still solid, the company isn't just treading water, it's setting up for a comeback. Wall Street's bullish outlook and the potential for a strong rebound suggest that, for patient investors, this beaten-down dividend stock could offer both stability and upside as the dust settles. On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-07-2025
- Business
- Yahoo
Tariffs Are Rocking This Dividend Stock, But Analysts Still Think It's a ‘Buy'
In March 2025, the U.S. government imposed a 25% tariff on imported aluminum before raising levies to 50% in June. This creates new challenges for companies that depend on metal packaging, such as for companies that sell canned sodas and beers. Constellation Brands (STZ), the $30.4 billion company behind big names like Corona, Modelo, and Kim Crawford, is feeling the pressure more than most. Constellation has dropped 35% from its 52-week high, falling behind the rest of the consumer defensive sector. The latest quarterly report revealed the significant impact of these tariffs, with revenue down 6% year-over-year to $2.52 billion. Up Nearly 20% in a Month, Is This Turnaround Dividend Stock Still a Buy in July? 3 Dividend Kings You'll Wish You Bought Before 2025 Ends Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Yet, despite the near-term headwinds, analysts remain notably bullish on Constellation's prospects as a resilient dividend payer. What's driving their optimism, and does this dividend stock still deserve a place in your portfolio? Let's find out. Constellation Brands (STZ) is a major player in the beverage industry, known for its popular beer, wine, and spirits brands. Even with this approach, the stock has struggled, dropping more than 32% over the past year and nearly 23% since the start of the year as investors worry about rising costs and weaker earnings. This caution shows up in the numbers, with Constellation's forward P/E at 13.5x, which is lower than the sector average of 16.62x, suggesting the stock is trading at a discount, likely because the market expects more challenges ahead. The company's recent financial results show why investors are concerned. In the first quarter of fiscal 2026, net sales fell 6% to $2.52 billion. Operating income decreased 24% to $714 million, and net income declined sharply by 41% to $516 million, as aluminum tariffs and higher costs eroded profits. On the bright side, free cash flow rose 41% to $444 million, driven by the timing of brewery investments, and the company continued to buy back shares, returning $381 million to shareholders through June. Constellation Brands isn't just sitting back while tariffs make things tough. The company recently sold off its mainstream wine brands to focus on higher-growth, higher-margin labels, shifting its attention to wines mostly priced above $15. This move shows Constellation is betting that people want better quality, not just more options. Its beer business is now the main driver, accounting for over 80% of total sales. Modelo Especial, which is now the top-selling beer in the U.S., along with Corona and Pacifico, is expected to help push beer sales up by as much as 3% in fiscal 2026. The company is also looking outside of alcohol, putting money into Hiyo, a non-alcoholic drink brand, to catch the growing interest in alcohol-free options. This helps Constellation reach new customers and makes the business less dependent on any one part of the market. These choices help support Constellation's dividend, even while profits are under pressure. The current yield is 2.4%, backed by a forward payout ratio of 29.8% and five straight years of dividend increases. Its yield is above the consumer staples average of 1.89%, and its steady approach to returning money to shareholders suggests its dividend still has room to grow. Heading into the second half of the year, Constellation has set its fiscal 2026 earnings outlook between $12.07 and $12.37 per share and is sticking with its targets for operating cash flow of $2.7 billion to $2.8 billion and free cash flow of $1.5 billion to $1.6 billion. Even though the company is still dealing with the hit from aluminum tariffs, some of Wall Street's biggest names are standing by their positive calls. RBC Capital's Nik Modi has kept his 'Buy' rating and a price target of $233, implying 35% upside. Jefferies has also upgraded the stock from 'Hold' to 'Buy' and raised its price target to $205, saying the stock looks too cheap right now to ignore. This positive view is shared by analysts across the board. The 22 analysts surveyed rate Constellation a consensus 'Moderate Buy,' and the average price target sits at $205.95. This implies upside potential of 19% from here. Despite the sting from aluminum tariffs and a rough patch in earnings, Constellation Brands is showing the kind of resilience that keeps analysts in its corner. With a sharpened focus on premium, high-margin products and a dividend that's still solid, the company isn't just treading water, it's setting up for a comeback. Wall Street's bullish outlook and the potential for a strong rebound suggest that, for patient investors, this beaten-down dividend stock could offer both stability and upside as the dust settles. On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-07-2025
- Business
- Yahoo
2 Elite S&P 500 Dividend Stocks to Buy Now and Hold Forever
Constellation Brands sells some of the most popular imported beers, but the stock can be bought for a song right now. Home Depot still commands a small share of the home improvement market, making it an excellent dividend growth stock. 10 stocks we like better than Constellation Brands › It's nice to have cash deposited automatically deposited into your investment account on a regular basis. The S&P 500 (SNPINDEX: ^GSPC) includes some of the largest and best businesses in the world, and many of these companies can make solid income investments. Here are two S&P 500 companies that are offering much higher yields than the index's 1.21% average. Imported beer makes up nearly a fifth of all beer consumed in the U.S., according to the Beer Institute, and Constellation Brands (NYSE: STZ) is the top seller and importer of three of the top imported beers in the U.S.: Modelo, Pacifico, and Corona. Recent sales weakness due to macroeconomic issues has sent the stock down, but the company generates plenty of earnings to support growing dividends. Constellation Brands is paying out close to a third of its adjusted earnings in dividends. Its quarterly payment is $1.02, which increased this year by $0.01. This puts the stock's forward dividend yield at an attractive 2.37%. Top beverage makers like Constellation Brands can make great income investments. While sales can soften when consumer spending trends weaken, these companies are selling an affordable product that people consume throughout the year. This leads to stable sales, earnings, and dividends. Constellation has been paying a growing dividend since 2015. Beer makes up the far majority of the company' business, but it also generates a small amount of sales from wine and spirits. However, management has sold off some wine assets recently to improve the performance of that side of the business. Management is aiming to save more than $200 million annually in costs by fiscal 2028. This spells more earnings and dividend increases for shareholders. While the stock was falling this year, Constellation's beer business remained the top market share gainer in the first quarter, with six of the top 15 dollar share-gaining beer brands in the U.S. This makes the recent dip in the share price a good buying opportunity. The lower share price has brought the forward price-to-earnings multiple down to a cheap 13.6 at the time of writing. Management is still guiding for full-year adjusted earnings per share between $12.60 to $12.90. Investors not only get the benefit of the above-average dividend yield but could see a nice return on the stock over the next five years. Home Depot (NYSE: HD) is the world's largest home improvement retailer with 2,350 stores across the U.S., Puerto Rico, the U.S. Virgin Islands, Guam, Canada, and Mexico. Like Constellation Brands, Home Depot has experienced soft sales over the past year. However, the stock has held up quite well and could surge to new highs if interest rates come down. The stock is currently offering an attractive forward yield of 2.48%. Tariffs on imported goods raised concerns about the potential for higher inflation, but so far, inflation has been relatively muted. The longer this continues, the greater the chance the Federal Reserve will lower interest rates, which would make financing home projects more affordable and benefit Home Depot. The long-term trend of growing household net worth is a secular tailwind that has made Home Depot a solid growth stock, on top of its growing dividend. A $10,000 investment in the stock 20 years ago would be worth $107,000 today, or $176,000 including dividend reinvestment. Home Depot has paid 38 consecutive years of dividend payments, which are well covered by earnings. The company paid 61% of earnings in dividends to shareholders over the past year. It raised its quarterly dividend earlier this year by 2% to $2.30. Home Depot generates $162 billion in annual sales but is going after a $1 trillion addressable market in home improvement. It has a solid competitive position in an important segment of the economy that should lead to many more years of growing dividend payments. Before you buy stock in Constellation Brands, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Constellation Brands wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy. 2 Elite S&P 500 Dividend Stocks to Buy Now and Hold Forever was originally published by The Motley Fool
Yahoo
08-07-2025
- Business
- Yahoo
2 Elite S&P 500 Dividend Stocks to Buy Now and Hold Forever
Constellation Brands sells some of the most popular imported beers, but the stock can be bought for a song right now. Home Depot still commands a small share of the home improvement market, making it an excellent dividend growth stock. 10 stocks we like better than Constellation Brands › It's nice to have cash deposited automatically deposited into your investment account on a regular basis. The S&P 500 (SNPINDEX: ^GSPC) includes some of the largest and best businesses in the world, and many of these companies can make solid income investments. Here are two S&P 500 companies that are offering much higher yields than the index's 1.21% average. Imported beer makes up nearly a fifth of all beer consumed in the U.S., according to the Beer Institute, and Constellation Brands (NYSE: STZ) is the top seller and importer of three of the top imported beers in the U.S.: Modelo, Pacifico, and Corona. Recent sales weakness due to macroeconomic issues has sent the stock down, but the company generates plenty of earnings to support growing dividends. Constellation Brands is paying out close to a third of its adjusted earnings in dividends. Its quarterly payment is $1.02, which increased this year by $0.01. This puts the stock's forward dividend yield at an attractive 2.37%. Top beverage makers like Constellation Brands can make great income investments. While sales can soften when consumer spending trends weaken, these companies are selling an affordable product that people consume throughout the year. This leads to stable sales, earnings, and dividends. Constellation has been paying a growing dividend since 2015. Beer makes up the far majority of the company' business, but it also generates a small amount of sales from wine and spirits. However, management has sold off some wine assets recently to improve the performance of that side of the business. Management is aiming to save more than $200 million annually in costs by fiscal 2028. This spells more earnings and dividend increases for shareholders. While the stock was falling this year, Constellation's beer business remained the top market share gainer in the first quarter, with six of the top 15 dollar share-gaining beer brands in the U.S. This makes the recent dip in the share price a good buying opportunity. The lower share price has brought the forward price-to-earnings multiple down to a cheap 13.6 at the time of writing. Management is still guiding for full-year adjusted earnings per share between $12.60 to $12.90. Investors not only get the benefit of the above-average dividend yield but could see a nice return on the stock over the next five years. Home Depot (NYSE: HD) is the world's largest home improvement retailer with 2,350 stores across the U.S., Puerto Rico, the U.S. Virgin Islands, Guam, Canada, and Mexico. Like Constellation Brands, Home Depot has experienced soft sales over the past year. However, the stock has held up quite well and could surge to new highs if interest rates come down. The stock is currently offering an attractive forward yield of 2.48%. Tariffs on imported goods raised concerns about the potential for higher inflation, but so far, inflation has been relatively muted. The longer this continues, the greater the chance the Federal Reserve will lower interest rates, which would make financing home projects more affordable and benefit Home Depot. The long-term trend of growing household net worth is a secular tailwind that has made Home Depot a solid growth stock, on top of its growing dividend. A $10,000 investment in the stock 20 years ago would be worth $107,000 today, or $176,000 including dividend reinvestment. Home Depot has paid 38 consecutive years of dividend payments, which are well covered by earnings. The company paid 61% of earnings in dividends to shareholders over the past year. It raised its quarterly dividend earlier this year by 2% to $2.30. Home Depot generates $162 billion in annual sales but is going after a $1 trillion addressable market in home improvement. It has a solid competitive position in an important segment of the economy that should lead to many more years of growing dividend payments. Before you buy stock in Constellation Brands, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Constellation Brands wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy. 2 Elite S&P 500 Dividend Stocks to Buy Now and Hold Forever was originally published by The Motley Fool
Yahoo
03-07-2025
- Business
- Yahoo
Jim Cramer Calls Constellation Brands a 'Fallen Idol'
Constellation Brands, Inc. (NYSE:STZ) is one of the 21 stocks on Jim Cramer's radar. During the episode, Cramer called the company a 'fallen idol' and said: 'On Tuesday, we get results from former market darling, Constellation Brands. What a fallen idol. There's so much to unpack here because this consumer packaged goods company is a microcosm of what's gone wrong with this now pathetic group that used to be the place to go when there's a slowdown. First: Constellation is an alcohol company, so all their products are being hurt by the GLP-1 drugs, which can blunt your craving for booze. That's especially true for the big beers, which are Modelo [and] Corona, and then a new popular favorite, Pacifico. A winemaker examining a glass of red wine from a barrel in a cellar. Constellation Brands (NYSE:STZ) produces and markets a wide range of well-known beer, wine, and spirits brands. The company distributes its products through wholesalers, retailers, and licensed venues. While we acknowledge the potential of STZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
