Cannabis actions are having an interesting week, thanks to the renewed interest of President Donald Trump in making cannabidiol (CBD) available for older people through Medicare. The president published a video on Sunday about his social feed of truth that promoted the health benefits of the CBD derived from hemp, saying that they can help older people to sleep, relieve pain and reduce stress.
Marijuana stocks rose to the news, with the growth of the canopy (CGC) increasing 18%, the aurora cannabis (ACB) increasing 25%, Cronos Group (chron) moving 15%higher and the Tilray marks (TLRY) shoot 42%. While many of those names are returning their profits in later days, a marijuana action settled barely moved.
Perhaps the market has forgotten that Constellation Brands (STZ) is a great shareholder of canopy growth? Despite leaving the Board in 2024 and converting its common actions into non -voting and non -participating interchangeable actions, Constellation Brands still has about 26 million CGC shares through its Shell company, Greensar Canada Investment Limited Partnership. These interchangeable actions become common actions on a base of 1 by 1, which represents approximately 14% of the company’s shares if they become.
For investors looking for an opportunity to benefit from the marijuana space and the possible action of the United States government, Constellation Brands offers an indirect and diversified path. But is it a good investment at this time?
With its headquarters in Rochester, New York, Constellation Brands is the third largest beer company in the United States and also a wines and high -end liquors producer. The company’s brands include Corona Beer and Kim Crawford Wine.
With a market capitalization of $ 24.5 billion, Stz shares have had a 2025 roar, 37% less than to date (YTD). Stz’s shares have only a 5% discount at a minimum of 52 weeks and works worse than the Boston Beer (Sam) competitors, which has dropped 26% in 2025, and Molson Cours Bevenge (TAP), 20% less.
Constellation Brands is also expensive, even for its standards. It currently has a price ratio (P/S) of 46.4, which is higher than its 10 years of 25.8. Then, at the current levels, the stock is overvalued.
But an advantage for constellation brands is that it pays a solid dividend yield of 3%, which is substantially better than the average performance of the 1.9%sector. The next payment of dividends of the company will be on November 13, 2025 to the shareholders registered on October 30.
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The profits of Constellation Brands for the first quarter of fiscal year 2026 were difficult. Income of $ 2.51 billion fell 6% for a year. The company reported adjusted income of $ 806 million, 13% less than last year. The earnings per share were $ 3.22, 10% less than the same quarter of the previous year and $ 0.12 lower than analysts expected.
Beer shipments fell 3% last year, while Wine and Spirits went out at 30.4% due to the sale of its company’s vodka brand from the company to Sazerac, which makes Fireball and Southern comfied.
“While we continue to face a softer demand for consumers, it is largely promoted by what we believe are non -structural socio -economic factors, our teams are still focused on executing the key initiatives that supported the perspectives that we recently provided for prosecutors 2026 to 2028,” said Bill Newlands CEO.
Management orientation for fiscal year 2026 requires a growth of beer sales of up to 3%, with a decrease in wine and spirit sales from 17% to 20% compared to last year, attributed to the sale of Svedka and the company’s decision in June in June to sell several wine brands to the group of wines, including Woodbridge, Meiomi, Cooks and others, to the approach to the highest price. The company predicts profits per share throughout the year of a range of $ 12.60 to $ 12.90.
Analysts are everywhere when it comes to Stz stock. Of the 23 that currently follow the brand, there is a “moderate purchase” consensus rating, with 12 that are optimistic in the shares. Three analysts have “sale” grades, and eight others suggest maintaining.
Analysts have an objective consensus price of $ 178.23, which implies a potential increase of 28% for the action, although the most bassist analyst of $ 123 warns that the action could face a slight short -term loss.
While Constellation Brands has some support from analysts, there are numerous things that work against the company. The company is going through a transition when disinterested in some of its marks of wine and spirit, which will naturally lead to a decrease in sales. It is also negatively affected by the increase in rates imposed by the US. In aluminum and steel imports, as well as higher tariffs imposed by Canada in wine and spirits.
Its property participation in canopy growth makes constellation brands an intriguing work for investors who hope to capitalize on the possible softening of US laws on marijuana. And the large dividend is attractive. But the falling beverage market and tariff challenges are too many to overcome to recommend Stz’s actions at this time.
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On the date of publication, Patrick Sanders had no positions (directly or indirectly) in any of the values ​​mentioned in this article. All information and data in this article are only for informative purposes. This article was originally published at Barchart.com
