Hello, Thanks for signing up for MarketBeat Daily Ratings—we’re excited to have you on board. Every weekday, you’ll get a curated summary of new “Buy” and “Sell” ratings from Wall Street’s top-rated analysts, the latest stock news, and bonus investing content—all delivered straight to your inbox. You’re just two quick steps away from completing your sign-up: 1. Make sure our emails go to your inboxGmail users:
Mobile: Tap the three dots (…) in the top right and select Move to Inbox or Move to Primary
Desktop: Click the folder icon at the top and select Move to Inbox or Primary Apple Mail users:
Tap our email address at the top (next to From: on mobile), then select Add to VIP Other providers:
Reply to this message and add newsletters@analystratings.net to your contacts 2. Confirm your subscriptionClick this link to confirm your subscription. This verifies your account and ensures you receive your newsletters without interruption instead of getting stuck in your spam filter. Confirm your subscription here. After you confirm, feel free to download our popular free report, "7 Stocks to Buy and Hold Forever" with this link. Thanks again for subscribing—we look forward to being part of your investing journey. 
Matthew Paulson
Founder and CEO, MarketBeat. P.S. If you didn’t mean to subscribe, no problem—you can unsubscribe here.
Today's Featured Story
Berkshire Bet Constellation Cuts Guidance: Why Shares Rose 8%Author: Leo Miller. Posted: 4/10/2026. 
Key Points
- Beer giant Constellation Brands has seen solid gains over the past several months.
- The firm posted meaningful beats in its latest earnings report, but also issued fairly disappointing guidance.
- Optimism around a highly important customer base is leading shares higher, but whether this optimism holds remains in question.
- Special Report: Have $500? Invest in Elon’s AI Masterplan
Constellation Brands (NYSE: STZ), one of just 42 stocks in Berkshire Hathaway's (NYSE: BRK.B) portfolio, has recovered strongly from recent lows. Shares fell to as low as $127 in November 2025 — a level that seemed overly pessimistic despite headwinds in the alcohol industry. The consumer staples stock has since rebounded above $160, a gain of more than 25%. The maker of Mexican beer brands such as Corona, Modelo and Pacifico saw a sizeable move after its latest earnings report. But that rebound may not tell the whole story. With the recent gains and the firm's latest results in mind, is Constellation still a value, or is the rally running into a ceiling? Constellation Beats During Quarter, But Guidance Is ConcerningIn the quarter, Constellation reported revenue of $1.92 billion, down more than 11% year-over-year (YOY). That still topped analyst estimates of $1.84 billion.
A under-the-radar AI stock trading for just $3 could be one of the most overlooked opportunities in the market right now.
While Nvidia dominates headlines, this small-cap play is positioned for significant upside at a fraction of the price.
Discover our No. 1 AI pick before the broader market catches on. Reveal the $3 AI Pick
The company also beat on comparable earnings per share (EPS), reporting $1.90 versus estimates of $1.74. However, comparable EPS declined nearly 28% YOY. Constellation's "comparable" EPS adjusts for significant divestments made in fiscal year 2025 (FY2025), including certain wine and spirits franchises, allowing investors to compare the performance of the business lines that remain. Although the quarter's beats were encouraging, the firm's guidance painted a different picture. After the report, Constellation entered FY2027, since its fiscal year runs ahead of the calendar year. For FY2027 the company expects comparable EPS of $11.20 to $11.90 (a $11.55 midpoint). That midpoint implies a roughly 2% decline from FY2026 comparable EPS of $11.82. The guidance missed the consensus of $12.38 — a figure that had implied about 5% YOY growth. The company also withdrew its FY2028 guidance, which it had provided around this time last year. Guidance is clearly moving in the wrong direction relative to expectations set in April 2025, when the firm projected comparable EPS would grow at a "mid-single digits to low-double digits" compound annual rate from FY2026 to FY2028. Now the company is projecting another year of negative growth after full-year comparable EPS fell 14% in FY2026. Withdrawing the FY2028 outlook does little to inspire confidence. Given that, it's understandable to question why shares climbed more than 8% the day after the earnings release. Squaring Constellation’s 8% Up-Move: CEO Statements Outweigh GuidanceSome investors may point to the quarter's beat as the reason for the rally. But guidance often carries equal or greater weight. While the company beat on comparable EPS by $0.16 in the quarter, it missed next year's guidance by about $0.83. Net of the quarter and guidance, the company now expects roughly $0.67 less in comparable EPS over five quarters (the reported quarter plus FY2027) than analysts had anticipated. Guidance withdrawals are rarely viewed as positive, which makes the stock's sharp move higher puzzling. Part of the rally appears tied to comments from CEO Bill Newlands. According to the Wall Street Journal, Newlands said in an interview, "It's too early to declare victory, but the trends have been more positive," suggesting beer sales among Hispanic consumers are improving. Hispanic Americans account for roughly 50% of Constellation’s customer base. The company echoed similar language in its earnings commentary, noting that "zip codes with larger Hispanic populations continued to weigh on overall portfolio performance, [but] the impact moderated during the quarter as the rate of decline in those areas improved." Still, the guidance update does not convey strong confidence. One interpretation is that Constellation is being conservative with its outlook: while it sees improving trends among Hispanic consumers, the gains aren't sufficient to maintain previous guidance. Those factors point to elevated uncertainty and make it difficult to view the stock's advance as fully justified. Constellation: Focus Turns to the Future of Hispanic ReboundAt present, Constellation doesn't look markedly overvalued or undervalued. Its valuation implies only modest growth over multiple years — a feasible outcome if beer demand and consumption among Hispanic Americans recover moderately. However, the decision to withdraw FY2028 guidance weakens that thesis. The coming quarters will be important to determine whether the improving trends among Hispanic consumers reach an inflection point and support the kind of steady growth investors had expected. |
Post a Comment
Post a Comment