What Happened?
Shares of beer, wine, and spirits company Constellation Brands (NYSE:STZ) fell 16.7% in the afternoon session after the company reported weak fourth quarter results, which fell below Wall Street's expectations for most of the key metrics we track, including sales, operating profits, and earnings. In addition, management lowered full-year earnings guidance, which is worrisome. Overall, this was a challenging quarter for the company.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Constellation Brands? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Constellation Brands’s shares are not very volatile and have had no moves greater than 5% over the last year. Moves this big are rare for Constellation Brands and indicate this news significantly impacted the market’s perception of the business.
Constellation Brands is down 17.9% since the beginning of the year, and at $182.78 per share, it is trading 32.8% below its 52-week high of $272.04 from March 2024. Investors who bought $1,000 worth of Constellation Brands’s shares 5 years ago would now be looking at an investment worth $970.25.
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
