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constellation brands stock

Will This Company Be The Best Beverage Company of 2022?

consumer discretionary Apr 12, 2022

Last we wrote about Constellation Brands, the stock was trading near $200 and was flat on the year due to supply chain headwinds.

Just a few months ago we thought the supply chain issues were nearing an end and now today the supply chain issues have really started to dissipate. And the stock has responded by increasing roughly 25% to $250 a share over just a few months span.

But now with the stock up so much over the last few months, many of you have been asking us if we think the upside has been priced in or not.

The short answer is no and we still think there's a ton more room for the stock to grow! We believe Constellation Brands is a best in class beverage company and is still way undervalued.

But how much upside is there? Let's get into the details 👇 


Constellation Brands Overview: 

Before we dive into Constellation Brands (STZ), we just wanted to let you all know who they are in case you are unfamiliar with them. While the parent company is not a household name, many people should be familiar with their brands. They include:

  • Beer: Corona, Modelo Especial, Negra Modelo, Pacífico, etc.

  • Spirits: Svedka Vodka, Casa Noble Tequila, High West Whiskey, Nelson's Green Brier Tennessee Whiskey, etc.

They are the largest beer importer in the US and have the third-largest market share of all major beer suppliers globally. They also have major investments in medical and recreational cannabis via Canopy Growth (CGC).

Long story short, Constellation Brands is a powerhouse in the adult beverage and cannabis space.

And now with that quick overview out of the way, let us answer the question we first posed above!