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Constellation Brands - AI Stock Analysis

Analysis generated June 10, 2025

Constellation Brands, Inc., is a leading international producer and marketer of beer, wine, and spirits. The company boasts a robust portfolio of premium brands that includes household names like Corona, Modelo, and Robert Mondavi. Headquartered in Victor, New York, Constellation Brands operates both in North America and internationally, leveraging its strong market presence to drive growth.

Fundamental Analysis

Revenue for the last quarter was $2.16 billion. This represents a decrease of 12.16% compared to the quarter before it, indicating potential short-term challenges. However, compared to the same quarter last year, there is an increase of 1.17%, suggesting a modest but positive year-over-year growth, which may provide some reassurance to long-term investors.

Net income for the last quarter was $375 million. This marks a significant decrease of 160.94% compared to the previous quarter, a figure that could raise eyebrows. Moreover, compared to the same quarter last year, there is a decrease of 195.64%, underscoring the need for the company to carefully manage its bottom line.

EBITDA for the last quarter was $137 million, representing a decrease of 115.22% compared to the quarter before it, and a decrease of 119.46% year over year. Both figures denote potential financial strain and emphasize the importance of addressing operational efficiencies.

The current Price-to-Earnings (P/E) ratio is 46.24, which is considerably high for the industry. A high P/E ratio can signal potential overvaluation, and in this case, it might suggest a bearish outlook for Constellation Brands.

Technical Analysis

Today's stock price stands at $171.98. This represents a decrease of 9.52% compared to a month ago, lending credence to short-term market concerns. More worryingly, the stock price has fallen by 30.12% compared to a year ago, indicating potential long-term issues.

The trend for Constellation Brands is currently bearish. The current Simple Moving Average over 10 days (SMA10) is 173.56, which is lower than the previous SMA10 of 174.19, suggesting a downward trend in price movement. The Relative Strength Index (RSI) is 74.8, indicating that the stock is potentially overbought and could be subject to a bearish reversal.

Alternative Data Analysis

Constellation Brands has 70 open positions, down by 11% in the last couple of months. This could indicate a strategic move to cut costs or improve margins, but it may not bode well for a company aiming for growth. Employee sentiment towards the business outlook is neutral, which doesn't inspire strong confidence.

Customer acquisition metrics show that Constellation Brands had an estimated 160,000 visitors to their webpage, down by 38% in recent months. This downward trend in web traffic is concerning as it could indicate a loss of customer interest and engagement.

The company also has 35,000 followers on Twitter, with a decline of 1% over the past couple of months. While not catastrophic, it does suggest a slight waning in customer engagement and interest.

AltIndex's AI score for Constellation Brands is 22, which signals a strong sell. This score is derived from a combination of fundamental, technical, and alternative data analyses.

Conclusion and Recommendation

In summary, Constellation Brands faces significant challenges across multiple fronts. The decline in revenue, net income, and EBITDA raises red flags about the company's immediate operational efficiency and profitability. The high P/E ratio suggests potential overvaluation, and the bearish technical indicators align with this view.

Furthermore, alternative data reflects declining customer engagement and cautious employee sentiment, adding to the concerns. Given the current data, the AI score of 22 underscores a strong sell signal. Investors should exercise caution and consider these multifaceted challenges before making any investment decisions regarding Constellation Brands.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.