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STZ

27% Cheaper Than Buffett’s Buy – And Sitting on a Key ZoneHi, One of the most recent and notable additions to Berkshire Hathaway’s portfolio is Constellation Brands NYSE:STZ — and if that’s not a fundamental vote of confidence, I don’t know what is. And hey, while Midsummer Day is behind us, warm and sunny summer evenings still lie ahead. So why not make your next cold Corona or Modelo a bit more... eemmm... financially meaningful? 😄 Because let’s be honest, I’m not just sipping beer, I’m making strategic support buys to help lift the chart. 🍻 That’s right, not a simple toast but a tactical entry. Cheers to price action! ;) Okay, jokes aside, but technically, this stock is now sitting at a real make-or-break level that deserves attention. Technical View: Trendline — We’re seeing the third touch, which tends to be the strongest. I usually ignore wicks, but this time the confluence gives it weight. Monthly EMA200 — Last touched during the 2008/2009 crash. A level packed with long-term liquidity and psychological weight. Fibonacci 38% retracement Horizontal support — Marked by arrows on the chart. Price has reversed here multiple times. It’s not a coincidence and hopefully this time isn’t the exception. $150 mid-round level — US markets love round numbers, and this one sits right inside the box. Often a magnet for liquidity and reaction. -------------------------------------------------------- Now add this: You’re not just buying a chart level. You’re buying a premium cash generator: - FCF Yield ~6.8% - Operating margin ~34% - Trading ~27% cheaper than Berkshire’s initial average (their cost basis is around $220/share) - Strong brands, stable cash flows, and pricing power Yes, last earnings had a one-off impairment but the underlying business remains rock solid. If you’ve ever wanted to justify those "cold snacks" in your hand as “portfolio research”... well, here’s your excuse. Do your homework, this might be your stock today. Cheers🍻 Vaido
NYSE:STZLong
by VaidoVeek
28
STZ LongSTZ has been in a long term accumulation structure perfectly respecting key levels and supports. Recently it has put in a few lower highs and it looks like the trend is changing. However, until it breaks down and takes out the last low, we are inclined to remain bullish. We are looking to go long on Monday, after open making sure we do not have a consecutive steep red candle. Reasons for long: - Bullish Divergence - Ascending right angle triangle formation still valid. The stoploss is strategised so that it would imply a breakdown of the formation. - Trend is bullish until low is taken out. - 200 MA held on 1D tf and respected as support on the last low on the 2D tf. We are at a point of minimal potential losses and maximum gains. Lets see what Monday has to offer but we will likely enter this trade.
NYSE:STZLong
by SynergyTradingSetups
Constellation Brands' Q3 Performance Paves the Way for Growth Constellation Brands Inc. (NYSE: NYSE:STZ ) has proven its mettle in the third quarter of fiscal 2024, delivering a stellar financial performance that surpassed market expectations. With a solid net sales figure of $2.47 billion and an impressive EPS of $3.24, the company's strategic initiatives and operational efficiency have propelled it to new heights. This article delves into the key factors driving Constellation Brands' success, its revised fiscal guidance, and the technical analysis that provides insights into the stock's potential future trajectory. Robust Financial Performance: Constellation Brands' Q3 report highlights a 1% increase in net sales compared to the previous year, reaching $2.47 billion. The Beer segment played a significant role in this growth, underlining the company's prowess in the alcoholic beverage market. This robust financial performance was attributed to strong brand momentum and strategic investments, reinforcing Constellation Brands' market positioning and operational effectiveness. Exceeding Expectations: The company not only met but exceeded Wall Street expectations, reporting an EPS of $3.24 against the forecasted $3.02. This impressive performance is indicative of Constellation Brands' solid operational execution and the success of its strategic initiatives. The adjusted revenue of $2.47 billion, while slightly below street forecasts, demonstrates the company's ability to navigate challenges and still deliver strong results. Stock Performance: Following the earnings announcement, Constellation Brands' stock price experienced a notable uptick in premarket trading, rising to $245.5, a 1.31% increase from its previous close of $242.33. The stock has shown resilience over the past year, posting a commendable 16.13% increase. The technical analysis suggests that the stock is within an approximate horizontal trend channel, signaling investor uncertainty. A decisive break through support at $242 or resistance at $280 will dictate the stock's future direction. Conclusion: Constellation Brands' Q3 performance is a testament to its resilience and strategic acumen in a competitive market. The company's ability to exceed expectations, coupled with a positive outlook for fiscal 2024, positions it for sustained growth and market leadership. Investors should keep a close eye on key support and resistance levels, as a breakthrough in either direction will provide crucial signals for future investment decisions. Constellation Brands appears poised for continued success, making it an intriguing prospect for investors seeking exposure to the dynamic beverage industry.
NYSE:STZLong
by DEXWireNews
Constellation Brands ( NYSE: STZ) Stock Forecast Cannabis stocks could potentially generate outsized gains for shareholders in the upcoming decade. But right now, several cannabis stocks are small- or micro-cap companies reporting massive losses. Many of these stocks are listed on the OTC markets, and remain speculative bets for long-term investors. But as the upcoming wave of legalization may unlock multiple billion-dollar markets for cannabis companies, one top-rated cannabis stock worth considering is Constellation Brands (STZ). Valued at a market cap of $43.96 billion, Constellation Brands produces, sells, and markets beer, wine, and spirits in the U.S., Canada, Mexico, Italy, and New Zealand. Back in 2017, this well-established vice stock entered the pot ring by investing $190 million in Canadian cannabis company Canopy Growth (CGC), taking a 10% stake. In the following year, Constellation Brands invested another $4 billion, increasing its CGC stake to 38.6%. Constellation Brands Performance In Fiscal Q2? While Constellation Brands has a sizeable stake in Canopy Growth, it remains one of the largest beer manufacturers globally. It is the number one brand among beer manufacturers in the U.S., and increased beer sales by 12% in fiscal Q2 of 2024 (ended in August). Comparatively, overall sales were up 7% year over year in Q2. Constellation Brands is now looking to gain traction in the high-margin premium beer and wine segments, which is also a fast-growing market. Priced at 20 times forward earnings, STZ is reasonably priced, given analysts expect adjusted earnings to rise by 11% annually in the next five years. Currently, STZ pays shareholders a quarterly dividend of $0.89 per share, translating to a dividend yield of 1.45%. These payouts have risen by 14% annually in the last eight years, and the payout ratio of 29.5% indicates there's room for this dividend to keep growing. Price Momentum STZ is trading in the middle of its 52-week range and near its 200-day simple moving average. What does this mean? Investors are still evaluating the share price, and the stock is still trying to generate some momentum. This is a positive sign for the stock's future value.
NYSE:STZLong
by DEXWireNews
Bullish Technical analysis of STZ (Constellation Brands, Inc)Constellation Brands, Inc. (STZ) is a leading producer and marketer of premium wine, beer, and spirits in the United States, Canada, Mexico, and other international markets. The company has a diversified portfolio of alcoholic beverage brands, including Corona, Modelo, Robert Mondavi, and Svedka Vodka. From a financial perspective, STZ has a solid track record of revenue growth and profitability. In the fiscal year 2021, the company reported net sales of $9.2 billion, representing a 3% increase from the prior year. The company's net income also increased by 15% to $2.2 billion. The company has consistently generated positive free cash flow, which allows it to invest in growth initiatives, pay dividends, and repurchase shares. In terms of profitability ratios, STZ has a strong gross margin of 47%, indicating that the company generates significant profits on the products it sells. The company's operating margin is also healthy at 30%, indicating that it is efficient in managing its operating expenses. STZ has a strong balance sheet, with a current ratio of 1.4 as of September 2021, indicating that it has sufficient short-term assets to cover its liabilities. The company has a moderate debt-to-equity ratio of 0.77, which is lower than the industry average, indicating that it has a conservative debt profile. From a valuation perspective, STZ's stock price appeared to be trading at a premium valuation as of September 2021, with a price-to-earnings (P/E) ratio of 25.5, which is higher than the industry average. However, investors may be willing to pay a premium for STZ's strong financial performance, growth prospects, and market leadership. In conclusion, based on the fundamental analysis, STZ appears to be a solid company with a strong financial position, consistent revenue growth, and healthy profitability ratios. However, it is important to note that market conditions and other factors can impact a stock's performance, and investors should conduct their own research and analysis before making any investment decisions.
NYSE:STZLong
by Red_Green-TA
$STZ — Diagonal Calendar Put Spread?This price forecast is purely based on technical analysis of the current setup. I guess people are drinking a lot? We've had an extremely long stretch of green - which is a stale green light - 11 days in a row of green & 6 weeks straight of green - that hasn't happened since 2017 - it looks like the stock is trying to breakout on the weekly chart, but it looks so overbought technically speaking - very wide divergence from the all of the moving averages. This is a great candidate for a diagonal calendar put spread , or just naked put buys. I'm considering buying a very far out put - possibly January 2023 - and selling near-month puts against it with the goal of both having my bought put appreciate in value and have the sold near-month puts degrade in value so I can either buy them back for cheap or let them expire worthless. If I am able to successfully roll in near-month credits against my bought strike then I can slowly pay off the position's debit & eventually have a risk-free position. In other words, if I make enough money from selling puts - against the bought out of the money & far dated puts - then I can completely pay off the cost of the puts I bought while still owning them - creates a risk free position. Let me know if this is a confusing strategy for any of you, or if you disagree with my analysis.
NYSE:STZShort
by OptionsAddicts
Update on TAP, kitchen sink earnings report, Double Down!TAP just had their kitchen sink earnings report. It was a dismal quarter. There are silver linings to this though. First, they had a 1.9% rise in net sales on a brand-volume basis in the United States. Second, their sales in Europe were badly hurt by the lockdown measures as the UK was in its worst phase at the time; this is only creating a demand glut. Third, they lowered their debt by $1.1 billion dollars. And finally, they realized they spent too much on general administrative expenses and marketing expenses; this is something that is easy to fix when the CFO gets handed the scissors. All the bad news is out, it should be all downhill from here with improvements and higher margins as they improve the bottom line. Buying stocks when they are fully beaten down but are still institutions that are household names that aren't going anywhere, can be a good entry point after they have their "kitchen sink" quarter. Boeing already had theirs, and Wells Fargo had theirs a while ago as well. Their fair value estimate based on their current financials is $55 a share so they are fundamentally undervalued. Keep in mind most companies eventually trade up to share prices that are above what would be a considered a fair valuation. A perfect example would be Tesla. STZ is in purple to compare TAP to a peer. STZ has mostly stayed inline with TAP in terms of performance until recently. STZ has now outperformed TAP and created a gap between the two. I believe TAP is due to play some catch up here. Last I saw, they closed at $44.50 after-hours. Buy under $50. Hold long and collect a 2.56% dividend yield in the meantime. NYSE:TAP
NYSE:TAPLong
by EBITDAtiger