Here's How Much a $1000 Investment in Constellation Brands Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Constellation Brands (STZ) ten years ago? It may not have been easy to hold on to STZ for all that time, but if you did, how much would your investment be worth today?
Constellation Brands' Business In-Depth
With that in mind, let's take a look at Constellation Brands' main business drivers.
Founded in 1945 and headquartered in Victor, NY, Constellation Brands Inc. produces and markets beer, wine and spirits. It is the third-largest beer company and a leading, high-end wine company in the United States. It has a strong portfolio of high-quality brands, including Corona, Modelo Especial, Robert Mondavi, Kim Crawford, Meiomi and SVEDKA Vodka. The company conducts its operations in the United States, Mexico, Italy and New Zealand.
Furthermore, the company supplies its products to various customers, including wholesale distributors, retailers and through on-premise outlets.
As part of its total beverage alcohol strategy, the company extended presence in an adjacent category through its investment in Canopy Growth Company, a diversified cannabis company.
The company reports in four operating segments: (1) Beer, (2) Wine and Spirits, and (3) Corporate Operations and Other, and (4) Canopy. While the company's beer segment contributed about 74.5% to total sales in fiscal 2021, its Wine and Spirits segment accounted for roughly 25.5%.
Beer: Constellation Brands sells beer primarily under the Corona Extra, Corona Light, Corona Premier, Corona Familiar Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands, as well as Funky Buddha and Four Corners brands. It also sells a number of brands in the high-end categories, driven by its iconic imported beer brands portfolio, which includes Corona Extra, Corona Light, Corona Premier, Modelo Especial, Modelo Negra, and Pacifico.
Wine and Spirits: Constellation Brands’ wine offerings include the 7 Moons, Black Box, Clos du Bois, Franciscan Estate, Kim Crawford, Mark West, Meiomi, Mount Veeder, Ravage, Robert Mondavi, Ruffino, Schrader, Simi, The Dreaming Tree, Charles Smith, Prisoner. Spirits are sold under the Casa Noble, High West, SVEDKA Vodka, Casa Noble tequila, and High West craft whiskey brands. The company’s high-quality premium wine and spirits brands include the Robert Mondavi Brand Family, Kim Crawford, Meiomi, The Prisoner Brand Family, SVEDKA Vodka, Casa Noble Tequila, and High West Whiskey.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Constellation Brands, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in June 2013 would be worth $4,529.62, or a 352.96% gain, as of June 12, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 161.59% and the price of gold increased 35.60% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for STZ.
Shares of Constellation Brands outpaced the industry in the past three months. The stock has been long gaining from continued strength in the beer business. The beer business reported strong depletion growth in fourth-quarter fiscal 2023 benefiting from the continued robust performance of Modelo Especial and Corona Extra, and newer brands — Pacifico and the Modelo Chelada. Moreover, the company’s premiumization strategy is playing out well, as evident from the accelerated growth for the Power Brands. Constellation Brands outlined a decent earnings view for fiscal 2024. However, it has been witnessing weak margins stemming from inflation, higher operating costs from brewery expansions, and elevated marketing expenses. Moreover, its earnings and sales declined year over year in the fiscal fourth quarter.
Over the past four weeks, shares have rallied 6.09%, and there have been 4 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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Constellation Brands Inc (STZ) : Free Stock Analysis Report
