STZ

Mission Produce, Inc. AVO is slated to report third-quarter fiscal 2026 results on Sept. 8, after market close. The company is likely to report top-and bottom-lines decrease when it posts the quarterly results.For revenues, the Zacks Consensus Estimate is pegged at $333.5 million, implying a drop of 6.8% from the year-ago quarter. The consensus estimate for the company’s earnings is pegged at 11 cents per share, which reflects a decline of almost 58% from the year-ago quarter’s figure. The consensus mark has increased 57.1% in the past seven days. In the last reported quarter, the company delivered a negative earnings surprise of 85.7%. Its earnings beat the Zacks Consensus Estimate by 30.1%, on average, in the trailing four quarters. Mission Produce’s quarterly results are likely to face headwinds, primarily due to an unusually high supply of Mexican avocados that pushed prices significantly lower and pressured margins. The company also faced a mismatch between fruit availability and customer demand, which led to higher sourcing costs for in-demand sizes and lower prices for excess sizes.In addition, Mission Produce had to rely more heavily on third-party packing services as its Mexican packing capacity was stretched, further affecting profitability. The company’s International Farming business was also impacted by lower blueberry packing volumes, weaker yields from newer blueberry acreage and investments in mango production that did not deliver the expected yield improvement.Additionally, the Blueberries segment faces lower volumes due to accelerated harvest timing and unfavorable weather conditions. Lower yields per hectare have been driving higher production costs, while reduced blueberry volumes are likely to have negatively impacted packhouse utilization in the International Farming segment. Also, potential weather disruptions associated with El Nino could create production risks. Collectively, these factors are expected to hurt AVO’s results in third-quarter fiscal 2026.On a positive note, Mission Produce has been benefiting from a vertically integrated model, durable avocado demand and an expanded platform following the completed Calavo acquisition. Higher volumes continue to support category growth, while Calavo integration adds North American packing capacity, supply flexibility and prepared foods exposure. Peru production is expected to reach record exportable volumes. Such factors are likely to have offered some cushion to the company’s performance in the to-be-reported quarter. Mission Produce, Inc. price-eps-surprise | Mission Produce, Inc. Quote Our proven model predicts an earnings beat for Mission Produce this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chance of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Mission Produce currently has an Earnings ESP of +33.33% and a Zacks Rank of 3. Mission Produce has a forward 12-month price-to-earnings ratio of 17.35X, higher than the Agriculture - Operations industry’s average of 15.76X. The stock is trading lower than its median of 21.37X. Image Source: Zacks Investment Research The recent market movements show that AVO’s shares have gained 20.2% in the past three months compared with the industry's 7.3% growth. Here are some other companies, which according to our model, also have the right combination of elements to beat on earnings this reporting cycle.Sysco SYY currently has an Earnings ESP of +1.90% and a Zacks Rank of 2. The company is likely to register an increase in the top and bottom lines when it reports first-quarter fiscal 2027 numbers. The Zacks Consensus Estimate for quarterly earnings per share is pegged at $1.17, up 1.7% from the year-ago period. SYY has a trailing four-quarter earnings surprise of 1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for Sysco’s quarterly revenues is pegged at $22.2 billion, which implies an increase of 4.8% from the prior-year quarter.Constellation Brands STZ currently has an Earnings ESP of +0.09% and a Zacks Rank of 2. The company is likely to register an increase in its top line when it reports second-quarter fiscal 2027 numbers. The Zacks Consensus Estimate for STZ’s quarterly revenues is pegged at $2.6 billion, which indicates a 3.8% rise from the prior-year quarter. The consensus estimate for Constellation Brands’ quarterly earnings per share is pegged at $3.63, remaining in line with the year-ago period. STZ has a trailing four-quarter earnings surprise of 9.6%, on average.Simply Good Foods SMPL currently has an Earnings ESP of +0.02% and a Zacks Rank of 3. The company is likely to register declines in its top and bottom lines when it reports fourth-quarter fiscal 2026 numbers. The Zacks Consensus Estimate for Simply Good Foods’ quarterly revenues is pegged at $328.6 million, which indicates a decrease of 11% from the prior-year quarter.The consensus estimate for Simply Good Foods’ quarterly earnings per share is pegged at 40 cents, down 13% year over year. SMPL has a trailing four-quarter earnings surprise of 9.2%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mission Produce, Inc. (AVO) : Free Stock Analysis Report Constellation Brands Inc (STZ) : Free Stock Analysis Report Sysco Corporation (SYY) : Free Stock Analysis Report The Simply Good Foods Company (SMPL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Brown-Forman Corporation BF.B posted first-quarter fiscal 2027 results, wherein the bottom line missed the Zacks Consensus Estimate and declined year over year. However, the top line surpassed the estimates and increased year over year.BF.B reported first-quarter fiscal 2027 earnings of 38 cents per share, rising 6% year over year and meeting the Zacks Consensus Estimate. Net sales of $911 million declined 1% and missed the consensus mark of $921.2 million by 1.1%. On an organic basis, net sales dipped 1% from the prior-year period.The top line was pressured by the end of the Korbel relationship, lower used barrel sales and tequila weakness. Ready-to-Drink sales rose 20%, led by a 48% jump in New Mix, providing a key offset to those headwinds.This Zacks Rank #4 (Sell) company’s shares have rallied 7.6% in the past three months compared with the industry’s 3.1% growth. Image Source: Zacks Investment Research Gross profit fell 1% year over year to $549 million and rose 1% on an organic basis. The gross margin expanded 40 basis points (bps) to 60.2%, primarily reflecting lower costs and the end of the Korbel relationship, partly offset by unfavorable foreign exchange and price/mix.Advertising expenses of $114 million declined 5% year over year, on a reported basis, and dipped 4% on an organic basis, as lower spending on Jack Daniel’s Tennessee Whiskey more than offset increased investment behind the international launch of Jack Daniel’s Tennessee Blackberry. Selling, general and administrative (SG&A) expenses rose 4% to $185 million due to the timing of targeted organizational realignment costs. Brown-Forman Corporation price-consensus-eps-surprise-chart | Brown-Forman Corporation Quote Operating income declined 3% year over year to $252 million on a reported basis but increased 4% organically. The operating margin contracted 50 bps to 27.7% as higher operating expenses more than offset gross margin expansion.Net income increased 3% year over year to $176 million. The earnings improvement reflected lower non-operating post-retirement expenses and the accretive impacts of prior-year share repurchases, partly offset by lower operating income. Whiskey net sales were flat on both reported and organic basis. Jack Daniel’s Tennessee Whiskey was also flat, while declines in Jack Daniel’s Tennessee Honey and Gentleman Jack offset the continued international rollout of Jack Daniel’s Tennessee Blackberry.Ready-to-Drink net sales increased 20% reported and 11% organically. New Mix surged 48% reported and 36% organically on strong consumer demand in Mexico, favorable currency effects and its U.S. launch. Tequila sales fell 12%, with Herradura down 17% and el Jimador down 10%. Rest of Portfolio sales declined 35%, while non-branded and bulk sales dropped 61%. U.S. net sales declined 3% but were flat organically. The end of the Korbel relationship, an estimated net decrease in distributor inventories tied to prior-year distributor transitions and lower Jack Daniel’s Tennessee Blackberry volumes weighed on the results, partly offset by higher Jack Daniel’s Tennessee Whiskey volumes and the JDCC transition.Developed International sales declined 6% reported and 8% organically, hurt by lower Jack Daniel’s Tennessee Whiskey volumes in Germany, France and Spain. Emerging-market sales increased 11% reported and 9% organically, supported by Mexico and double-digit New Mix growth, while Travel Retail sales slipped 1%. Cash provided by operating activities increased $13 million year over year to $173 million. The free cash flow rose $32 million to $161 million, supported by stronger operating cash flow and lower capital spending needs.Brown-Forman ended the quarter with $301 million in cash and cash equivalents, and $2.08 billion in long-term debt. The company also repaid the $343-million principal amount of its 1.20% senior notes at maturity and returned $106 million to stockholders through quarterly dividends. Management expects a challenging fiscal 2027 operating environment amid macroeconomic pressure and geopolitical instability, particularly in developed markets. The company expects to benefit from restructuring actions, U.S. distributor changes and continued product innovation.Brown-Forman reaffirmed its outlook for organic net sales to be approximately flat and organic operating income to decline 3-5%. The company also projects an effective tax rate of 20-22% and capital expenditure of $60-$70 million. The Vita Coco Company Inc. COCO is the leading coconut water brand in the United States, leveraging its strong brand equity, expanding global presence and asset-light business model to capitalize on the growing demand for healthier hydration beverages. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Vita Coco’s current financial-year sales and earnings indicates growth of 31.6% and 64.7%, respectively, from the prior-year reported levels. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.Constellation Brands Inc. STZ produces and markets beer, wine and spirits. It is an international beverage alcohol company with operations in the United States, Mexico, New Zealand and Italy. STZ currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for Constellation Brands’ current fiscal-year sales and earnings indicates growth of 0.02% and 0.2%, respectively, from the year-ago reported numbers. STZ delivered a trailing four-quarter earnings surprise of 9.6%, on average.The Coca-Cola Company KO is a leading beverage company. Its portfolio includes 32 billion-dollar brands spanning sparkling beverages, water, sports drinks, dairy and value-added beverages. KO currently has a Zacks Rank #2.The Zacks Consensus Estimate for Coca-Cola’s 2026 sales and earnings suggests growth of 4% and 9.7%, respectively, from the year-ago reported figures. The company delivered a trailing four-quarter earnings surprise of 4.6%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Brown-Forman Corporation (BF.B) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report Constellation Brands Inc (STZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Brown-Forman Corporation BF.B is slated to release first-quarter fiscal 2027 results on Sept. 2. The alcoholic beverage bigwig’s earnings are expected to have increased. The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $921.2 million, indicating a drop of 0.3% from the year-ago quarter.The consensus mark for earnings is pegged at 38 cents per share, indicating an increase of 5.6% from the year-ago period’s number. Earnings estimates for the fiscal first quarter have been unchanged in the past 30 days.In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 63.6%. In the trailing four quarters, BF.B delivered a negative earnings surprise of 11.9%, on average. Brown-Forman has been benefiting from its premiumization strategy and strong brand investments. BF.B is advancing its pricing strategy, global expansion and revenue-growth management initiatives. The company is gaining traction from portfolio evolution, Jack Daniel's Country cocktail business model change and strong price mix.Brown-Forman is focusing on expanding its geographic presence, strengthening its core brands, accelerating innovation and premiumization, and expanding its ready-to-drink portfolio. The company is also working to improve its route-to-consumer model, streamline operations and enhance cost efficiency. In international markets, Brown-Forman is increasing distribution and scale, particularly in Japan and other emerging markets. It continues to invest in key brands such as Jack Daniel’s, while using new products, pricing, revenue growth management and targeted marketing to drive organic growth. All such aforesaid efforts are likely to have aided the company’s performance in the quarter under review. The Zacks Consensus Estimate for Emerging markets’ revenues is pegged at $251 million for the quarter under review, up 12.1% year over year.However, Brown-Forman has been grappling with a volatile operating landscape including geopolitical uncertainties and softening consumer demand. Consumer demand has remained muted across key markets, as inflationary pressures and cautious discretionary spending continue to weigh on premium alcohol purchases. The company’s results have also been pressured by portfolio-related headwinds, including the absence of Finlandia and Sonoma-Cutrer, the conclusion of the Korbel relationship and the lack of benefits from the prior-year Sonoma-Cutrer transition services agreement. Weaknesses in Jack Daniel’s Tennessee Whiskey, Herradura and Jack Daniel’s Tennessee Honey are expected to have further weighed on sales trends. These factors are expected to have hurt its first-quarter fiscal 2027 performance, with the company witnessing lower volumes across several brands and regions. Brown-Forman Corporation price-eps-surprise | Brown-Forman Corporation Quote Our proven model does not conclusively predict an earnings beat for Brown-Forman this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Brown-Forman has an Earnings ESP of -1.09% and a Zacks Rank #4 (Sell) at present. From a valuation perspective, Brown-Forman stock is trading at a premium relative to the industry benchmarks. It has a forward 12-month price-to-earnings of 16.54X, above the Beverages - Alcohol industry’s average of 15.05X. Image Source: Zacks Investment Research Brown-Forman shares have lost 2% in the past six months against the industry’s growth of 0.4%. Here are a few companies, which according to our model, have the right combination of elements to post an earnings beat:Sysco SYY currently has an Earnings ESP of +1.90% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports first-quarter fiscal 2027 numbers. The Zacks Consensus Estimate for quarterly earnings per share is pegged at $1.17, up 1.7% from the year-ago period. SYY has a trailing four-quarter earnings surprise of 1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for Sysco’s quarterly revenues is pegged at $22.2 billion, which implies an increase of 4.8% from the prior-year quarter.Constellation Brands STZ currently has an Earnings ESP of +0.09% and a Zacks Rank of 3. The company is likely to register a decline in its top and bottom lines when it reports second-quarter fiscal 2027 numbers. The Zacks Consensus Estimate for STZ’s quarterly revenues is pegged at $2.6 billion, which indicates a 3.7% rise from the prior-year quarter. The consensus estimate for Constellation Brands’ quarterly earnings per share is pegged at $3.63, remaining in line with the year-ago period. STZ has a trailing four-quarter earnings surprise of 9.6%, on average.Simply Good Foods SMPL currently has an Earnings ESP of +0.02% and a Zacks Rank of 3. The company is likely to register declines in its top and bottom lines when it reports fourth-quarter fiscal 2026 numbers. The Zacks Consensus Estimate for Simply Good Foods’ quarterly revenues is pegged at $330.5 million, which indicates a decrease of 10.4% from the prior-year quarter.The consensus estimate for Simply Good Foods’ quarterly earnings per share is pegged at 40 cents, down 13% year over year. SMPL has a trailing four-quarter earnings surprise of 9.2%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Brown-Forman Corporation (BF.B) : Free Stock Analysis Report Constellation Brands Inc (STZ) : Free Stock Analysis Report Sysco Corporation (SYY) : Free Stock Analysis Report The Simply Good Foods Company (SMPL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

During the August 6 episode of Mad Money, Jim Cramer focused his market analysis on the recent trajectory of Constellation Brands, Inc. (NYSE:STZ), asking why investor sentiment has remained sluggish despite robust underlying fundamentals. He said: Constellation Brands, Inc. (NYSE:STZ) commands the domestic imported beer market with premier labels like Modelo, Corona, and Pacifico, yet shares have retreated significantly from their spring 2024 highs. As per Constellation Brands, Inc.'s (NYSE:STZ) first quarter earnings results for fiscal 2027, total net sales reached $2.43 billion, while comparable EPS was $3.43, beating Wall Street consensus estimates of $3.21. The beer division served as the primary profit engine, as it reported $2.28 billion in net sales, up 2% year-over-year, while maintaining an impressive segment operating margin of 39%. Furthermore, management highlighted favorable demand tailwinds from global sporting events like the World Cup, which supported category depletions. Addressing intra-quarter volume shifts alongside Chief Financial Officer Garth Hankinson, CEO Nicholas Fink explained that purchasing behavior began with a normalized, resilient start in March before sharply decelerating through April and May. Management attributed the slowdown to a national spike in gas prices, compounding years of cumulative inflation and squeezing lower-income consumer discretionary budgets. Despite the beats and an affirmed full-year comparable EPS guidance range of $11.20 to $11.90, equity shares faced pressure because executive leadership maintained rather than raised its full-year forecast. Macroeconomic headwinds continue to weigh on institutional sentiment due to cumulative inflation, higher gas prices tempering discretionary consumer spending, and policy uncertainties surrounding immigration enforcement. On July 21, Barclays maintained a Hold rating on Constellation Brands, Inc. (NYSE:STZ) stock while lowering their price target to $132 from $139. Barclays analysts emphasized that intermediate multiple expansion remains constrained by a heavy impending ramp in beer operating expenses and risks of volume deceleration following the conclusion of the World Cup. According to institutional tracking data from Insider Monkey, the number of tracked hedge funds holding positions in Constellation Brands, Inc. (NYSE:STZ) shifted from 53 in the fourth quarter of 2025 to 56 in the first quarter of 2026, though it is worth noting that regulatory 13F filings represent a backward-looking snapshot showing multi-quarter structural positioning rather than reactive day trading. Lastly, the short interest is 4.83% of shares outstanding, indicating mild bearish sentiment. The company combines dominant brand equity and strong cash generation with valuation appeal, leaving executive execution under new leadership as a significant catalyst for future equity appreciation. While we acknowledge the potential of STZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Jim Cramer Examines Akamai Technologies' (AKAM) Cloud Pivot and Robotics Win and Jim Cramer Weighs In on Space Equities: Rocket Lab (RKLB) vs. Voyager Technologies (VOYG). Disclosure: None. Follow Insider Monkey on Google News.

Both readings are true at once, and the gap between them is the real question for anyone weighing the shares. Altria (MO) trades around $67.90, roughly 9% below its 52-week high of $74.92, after returning 22% over the trailing twelve months. Over the trailing three months it returned 1.1% against 4.2% for the S&P 500. On earnings it sits well below the market, at 14.2 times earnings against 24.4 for the S&P 500. On sales the order flips: 5.5 times revenue against 3.4 for the index. How Can One Stock Be Below The Market On Earnings And Above It On Sales? Because far less is lost between the top line and the bottom than at the average company. Operating margin runs at 60% against 18.4% for the S&P 500, and net margin of 39% against 12.9% for the index leaves roughly $8.0 billion. The business converts about 46% of revenue into operating cash flow versus 22% for the market. The two multiples are one fact seen twice: at a 39% net margin, 14.2 times earnings is 5.5 times sales. What Is Growing Behind That Margin? Not much, on the top line. Revenue has shrunk at a 0.4% average annual rate over the last three years, against 5.9% growth for the S&P 500. Revenue of $20.4 billion over the trailing twelve months is barely changed from a year earlier, and in the second quarter of 2026 it grew 1.2% to $5.4 billion. Profitability sits far above the market, on a top line that does not grow. The Cigarette Business Is Doing The Heavy Lifting In the second quarter of 2026 adjusted diluted earnings per share rose 2.8% to $1.48. Smokeable products carried it: adjusted operating companies income grew 2.4% to $3 billion at a 65% margin, as price realization of 4.5% ran against inventory-adjusted domestic cigarette volumes that fell 4.5%. The company estimates industry cigarette volumes fell 5%, a fourth straight quarter of moderating declines, and management has narrowed full-year 2026 guidance to adjusted EPS of $5.61 to $5.72, lifting the low end. Marlboro's overall retail share fell 1.5 share points from a year earlier as discount retail share grew 2.6 share points, while Marlboro held 60% of the premium segment. By management's own account the consumer remains under pressure from inflation and elevated gas prices. What The Nicotine Pouch Push Costs Right Now Oral tobacco is where the transition is being paid for. Adjusted operating companies income there fell 8% in the second quarter of 2026, and reported on! shipment volume was 49.9 million cans, down 4.2% from a year earlier, while on! PLUS has reached 120,000 stores. The company puts that segment profit decline down to on! PLUS trial investment and a difficult prior year comparison, and the volume decline to trade inventory movements. Reported profit fell in the quarter, with lower nicotine pouch sales offsetting some of the cigarette growth. The counterweight is share: on! retail share reached 8.6%, up 0.8 share points sequentially, with flavor extensions due in the fourth quarter of 2026. What Has To Hold For The Cash To Keep Coming None of this resolves into a verdict. The margin is the entire case for the multiple, so watch whether smokeable adjusted operating companies income margin holds near 65% while price realization keeps pace with volume decline. The other half is whether the oral segment's 8% profit decline is the price of a launch or the shape of the business. And the payout rests on that cash: about $3.6 billion of dividends in the first half of 2026, with debt at 1.9 times EBITDA. Our five-factor stock scorecard scores those pieces against one another. Owning One Tobacco Franchise Is Still Owning One Category A business that turns close to half its revenue into cash is a rare thing, and it is still one business in one category, facing one stretched consumer and one long secular decline. Concentration is the risk that never shows up in a multiple. That is the case for a system rather than a single name: the Trefis High Quality portfolio is a rules-based group of stocks, rebalanced on evidence rather than conviction. It has a track record of outpacing a benchmark that combines the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000.

It has been about a month since the last earnings report for Constellation Brands (STZ). Shares have lost about 3.8% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Constellation Brands due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Constellation Brands Inc before we dive into how investors and analysts have reacted as of late. Constellation Brands reported first-quarter fiscal 2027 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. The company’s sales declined year over year, but earnings improved from the year-ago period.Comparable earnings per share (EPS) of $3.43 rose 7% year over year in the fiscal first quarter and surpassed the Zacks Consensus Estimate of $3.22. On a reported basis, the company’s EPS was $3.79 compared with $3.43 reported in the year-earlier quarter.Net sales declined 3% year over year to $2.433 billion but surpassed the Zacks Consensus Estimate of $2.404 billion. Organic net sales increased 3% year over year. Constellation Brands' sales for the beer business jumped nearly 2% year over year to $2.28 billion, backed by a rise of 1.8% in shipment volumes and favorable pricing. Depletions fell 0.3% as declines for Modelo Especial of just 2% and Corona Extra of about 5% were more than offset by increases from Pacifico, Victoria and the Modelo Chelada brands of nearly 21%, 14% and 6%, respectively.Sales in the wine and spirits segment plunged 47% year over year to $149.2 million in the fiscal first quarter. The decline mainly reflected a 64.1% drop in shipment volumes tied to the 2025 Wine Divestitures.On an organic basis, wine and spirits net sales rose 8%. Organic shipments increased 7.7%, while depletions grew 6.6%, led by gains of approximately 4% for Kim Crawford and 62% for Mi CAMPO Tequila. The wine and spirits portfolio outpaced the total wine and spirits category in both dollar and volume sales across Circana U.S. tracked channels. STZ's comparable operating income came in at $834.2 million, up 6% year over year. Reported operating income rose 18% to $845.3 million, while reported operating margin expanded 630 basis points (bps).Operating income for the beer segment rose 2% year over year to $891.4 million. The segment operating margin was 39%, nearly flat year over year, as shipment volume growth and favorable pricing were offset by unfavorable mix and higher marketing and other SG&A spending. As of March 31, 2026, Constellation Brands’ cash and cash equivalents were $96.6 million, long-term debt (excluding current maturities) was $9 billion and total shareholders’ equity (excluding non-controlling interest) was $8.5 billion. The company generated an operating cash flow of $662 million and an adjusted free cash flow of $485 million in fiscal 2026.STZ’s board announced a quarterly dividend of $1.03 per share for Class A shares on June 30, 2026. The dividend is payable on Aug. 13 to its shareholders of record as of July 30, 2026.The company returned more than $400 million to its shareholders through share repurchases and dividends. It repurchased $324 million of shares year to date through June 2026.Constellation Brands still forecasts an operating cash flow of $2.4-$2.5 billion for fiscal 2027. It expects free cash flow of $1.6-$1.7 billion. STZ plans to incur capital expenditures of $800 million in fiscal 2027. Looking forward, Constellation Brands updated its fiscal 2027 reported EPS outlook to $11.50-$12.20, up from the previous estimate of $11.10-$11.80. The company expects comparable EPS of $11.20-$11.90 for fiscal 2027 compared with $11.82 earned in fiscal 2026. Enterprise and wine & spirits growth (decline) net sales assumptions for fiscal 2027 exclude $142 million for the March 1, 2025, to June 1, 2025, period. These are no longer part of the year-over-year results following the 2025 Wine Divestitures.STZ projects enterprise organic net sales growth (decline) of (1)%-1%, beer net sales growth (decline) of (1)%-1%, and wine & spirits business organic net sales growth (decline) of (1)%-1%. Enterprise operating margin on a reported and comparable basis is projected to be 32-33%, with beer operating margin of 37-38% and wine & spirits operating margin of 5-6%. Since the earnings release, investors have witnessed a downward trend in estimates review. Currently, Constellation Brands has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Constellation Brands has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Constellation Brands Inc (STZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Sensata Technologies Holding N.V.? Here are five stocks we like better. Strong Q2 performance: Revenue rose 5% to $991 million, organic growth reached 4.4%, adjusted operating margin expanded to 19.5%, and adjusted EPS increased 12.6% to $0.98. All three operating segments delivered organic growth, led by Aerospace, Defense and Commercial Equipment. Cash generation and deleveraging improved significantly: Free cash flow surged 61% to $186 million, while Sensata retired $406 million of debt and reduced net leverage to 2.4 times EBITDA, reaching its below-2.5-times target ahead of schedule. Growth opportunities remain broad: Sensata highlighted accelerating automotive growth in India and emerging data-center applications, including sensors, electrical protection and liquid cooling. The company expects third-quarter revenue of $957 million to $987 million and adjusted EPS of $0.93 to $0.97. Constellation Brands: Beer Growth and Buybacks Mask Stock's Slump Sensata Technologies (NYSE:ST) reported second-quarter 2026 results that exceeded its expectations, with revenue, adjusted operating income and adjusted earnings per share all rising from a year earlier. Chief Executive Officer Stephan von Schuckmann said the company recorded its fourth consecutive quarter of organic growth, with growth across each of its three operating segments. Second-quarter revenue increased 5% to $991 million from $943 million in the prior-year period. Organic revenue rose 4.4%, while foreign exchange provided a roughly 1% inorganic tailwind. Adjusted operating income totaled $193 million, producing an adjusted operating margin of 19.5%, up 50 basis points from 19.0% a year earlier. Adjusted EPS rose 12.6% year over year to $0.98. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now 5 Reasons to Pony Up for Pony AI Stock—and 1 Reason to Wait “Growth is now taking hold across all three segments,” von Schuckmann said, citing automotive market outgrowth, continuing strength in aerospace, defense and commercial equipment, and emerging industrial opportunities. Free cash flow reached $186 million in the second quarter, up 61% from $115 million a year earlier. Free cash flow conversion was 130% of adjusted net income for the quarter, compared with 91% in the prior-year period. Year-to-date conversion stood at 108%. → 3 Value ETFs to Consider as Growth Stocks Lag Behind Qualcomm's TikTok AI Chip Deal Rewrites the Rules Chief Financial Officer Andrew Lynch said the company has improved its cash conversion cycle by about 15 days over the past 18 months, primarily through lower inventories and supplier-payment-term optimization. Sensata also reduced capital intensity through greater use of existing capacity, automation and more flexible production lines. Capital expenditures were just over 2% of revenue year to date, though Lynch said spending is expected to normalize toward prior-year run rates during the second half. The company used about $400 million of cash during the quarter to retire $406 million of long-term debt. Net leverage declined to 2.4 times trailing-12-month adjusted EBITDA, from 3.0 times a year earlier, reaching the company’s below-2.5-times target two quarters ahead of schedule. Gross indebtedness was approximately $2.5 billion, down $762 million from June 30, 2025. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Sensata ended the quarter with $403 million in cash and $650 million available under its undrawn revolving credit facility. The company also returned $18 million to shareholders through its quarterly dividend and announced a third-quarter dividend of $0.12 per share, payable Aug. 26 to shareholders of record as of Aug. 12. Automotive: Revenue rose 3.3% to $545 million, including 1.8% organic growth. The segment outgrew flat global auto production by about 2%, supported by content gains and production mix. Operating margin expanded 120 basis points to 24.2%. Industrials: Revenue increased 2.9% to $212 million, or 4.2% organically, aided by share gains and stabilization in U.S. HVAC production. Operating margin declined 100 basis points to 27.1%, as Sensata reinvested productivity gains from Automotive into industrial growth initiatives, including data centers. Aerospace, Defense and Commercial Equipment: Revenue climbed 11.5% to $234 million, or 10.9% organically, marking the segment’s second consecutive quarter of double-digit growth. Revenue increased across aerospace, defense, on-road trucks and off-highway equipment. Operating margin rose 340 basis points to 27.8% on operating leverage from higher volumes. In Automotive, von Schuckmann said Sensata outgrew both internal-combustion-engine and electric-vehicle production in North America and Europe. North American ICE revenue increased about 14% against a market that grew 2%, while EV revenue was approximately flat despite EV production declining more than 30%. In Europe, EV revenue grew 30% while EV production increased 10%. India was a particular area of growth, with automotive revenue rising more than 40% in the second quarter and more than 50% year to date. Sensata plans to open a manufacturing facility in Chennai to localize production for Indian customers. Lynch said India automotive revenue exceeded $20 million in the quarter, representing about 5% of the company’s automotive business. Management highlighted data centers as a developing growth platform, with opportunities in electrical protection, thermal management, and power and peak-load management. The company is targeting applications including circuit breakers, high-voltage contactors, pressure and temperature sensors, liquid-cooling systems, converters and inverters. Von Schuckmann said changing data center architectures, including higher-voltage systems, liquid cooling and increased on-site generation, could expand Sensata’s addressable market by 1.5 times to 2.5 times on a per-megawatt basis, excluding capacity deployment growth. However, he said the company was not yet prepared to disclose expected market share, content per megawatt, or a revenue framework because customer designs and deployment timelines are still evolving. During the quarter, Sensata was specified into three additional hyperscaler concepts, bringing its year-to-date total to five platform concept wins across four major hyperscaler brands. The company was also named a preferred vetted vendor by a major hyperscaler. One specification led to an award with an original design manufacturer for pressure and temperature sensors used in coolant distribution units, with shipments expected to begin in the first quarter of 2027. Lynch said industrial components revenue tied to data centers approximately doubled in the first half of 2026 compared with the first half of 2025. For the third quarter, Sensata expects revenue of $957 million to $987 million, adjusted operating income of $186 million to $193 million, and adjusted operating margin of 19.4% to 19.6%. The company forecast adjusted net income of $137 million to $142 million and adjusted EPS of $0.93 to $0.97. The outlook includes approximately $10 million in tariff costs and associated pass-through revenue, similar to the level experienced in the second quarter. Management said tariff changes announced recently were not expected to have a significant impact on the business. The guidance does not include potential tariff refunds related to recent IEPA tariff rulings. Lynch said third-quarter revenue seasonality is primarily driven by automotive production shutdowns in Europe during the summer. The company expects fourth-quarter revenue to be roughly flat sequentially from the third quarter, while continuing to expect year-over-year margin expansion. Sensata Technologies Holdings N.V. is a global industrial technology company specializing in the design, development and manufacture of sensors and electrical protection solutions. The company's product portfolio includes pressure, temperature, position, speed, current and magnetic sensors, as well as circuit breakers and other protection devices. Sensata's offerings serve a wide array of end markets, with a particularly strong presence in automotive original equipment manufacturers (OEMs), industrial automation, heating, ventilation and air conditioning (HVAC), commercial aerospace and renewable energy sectors. Headquartered in Attleboro, Massachusetts, Sensata operates a network of manufacturing and engineering facilities across North America, Europe, Asia Pacific and Latin America. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Sensata Technologies Q2 Earnings Call Highlights" was originally published by MarketBeat. 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The Boston Beer Company, Inc. SAM has financial strengths that should not be dismissed. It has no debt, solid cash generation and improving gross margins. The problem is that weak demand is cutting into earnings visibility. For investors, the question is whether balance-sheet resilience can offset estimate cuts, lower volumes and a valuation that still looks demanding. SAM trades at 18.29X forward 12-month earnings. That compares with 15.28X for its Zacks sub-industry and 16.98X for the broader Zacks sector Image Source: Zacks Investment Research The premium is harder to defend while volumes are declining. The $153 price target, based on 17.21X forward 12-month earnings, sits below the $180.15 share price and points to downside risk. The stock does trade below its five-year median multiple of 26.34X. Still, a lower-than-historical valuation does not automatically make the shares attractive when earnings expectations are falling. Constellation Brands STZ and Molson Coors Beverage Company TAP offer relevant peer context for investors tracking alcohol demand, pricing power and category share shifts. Both stocks sit in the same broader beverages-alcohol investment discussion as SAM. Boston Beer posted second-quarter adjusted earnings of $3.65 per share, missing the Zacks Consensus Estimate of $4.77. The figure declined 33% from the year-ago quarter. Revenues fell 3.3% to $568 million. Lower volumes and higher marketing costs weighed on results, even as pricing and favorable mix helped cushion part of the pressure. Estimate revisions are also negative. The fiscal-year earnings estimate fell 10.5% over four weeks and 13.25% over 12 weeks, reinforcing a weaker near-term earnings setup. SAM ended the second quarter with $265.5 million in cash and no debt. The company also had full availability under its $150 million revolving credit facility. First-half operating cash flow totaled $117.6 million, while capital expenditures were $22.9 million. Those figures show that the business is still producing cash despite softer demand. Management also reduced its full-year capital-spending outlook to $60 million to $80 million from $70 million to $90 million. That gives the company more flexibility as it focuses spending on brewery capabilities, efficiency and innovation. Boston Beer still has levers that could support profitability. Management expects price increases of 1% to 2%, while supply-chain productivity and higher internal production should help margins. Internal production reached 84% of domestic volume in the second quarter, up from 76% a year earlier. Management expects that rate to exceed 90% for the full year. Image Source: Zacks Investment Research Sun Cruiser delivered triple-digit depletion growth, and Angry Orchard grew for a fifth consecutive quarter. Those gains support portfolio renewal. The offset is that companywide volumes remain under pressure. Tariff costs are expected to total $20 million to $30 million, freight inflation remains a concern and litigation exposure continues to cloud reported earnings and cash deployment. The bottom line is that SAM’s balance sheet and margin progress help limit financial risk, but they do not yet fix the demand problem. A buying case would be stronger with clearer evidence that volumes and core brand trends are stabilizing. The stock currently carries a Zacks Rank #5 (Strong Sell), reflecting negative earnings-estimate revisions and weak near-term momentum. That signal favors caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. SAM’s Growth Score of B and VGM Score of B recognize areas of operating potential. The Value Score of C and Momentum Score of F suggest the risk-reward profile remains unattractive without stronger demand stabilization. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report Molson Coors Beverage Company (TAP) : Free Stock Analysis Report Constellation Brands Inc (STZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Constellation Brands stock is trading near multi year lows after a steep share price decline over the last three years, yet the broader valuation checks still point to the shares looking cheap versus fundamentals. The stock has declined 48.4% over the past three years, which raises the question of whether sentiment has swung too far relative to the underlying business. Growth in Constellation Brands' beer segment and ongoing share buybacks can support investor expectations for future earnings, while a changing consumer backdrop may limit how much investors are willing to pay for those cash flows. On Simply Wall St's broader valuation checks, Constellation Brands screens as undervalued in 6 of 6 areas, which suggests the current price is low compared to several fundamental measures. The issue now is whether Constellation Brands' weak recent share-price performance already reflects the key risks, or whether the current valuation still leaves room for further downside. Find out why Constellation Brands' -23.0% return over the last year is lagging behind its peers. The P/E ratio is a useful way for you to see what you are paying for each dollar of Constellation Brands earnings. Right now, the stock trades on a P/E of 12.4x, which is below the Beverage industry average of 17.1x and also below the peer group average of 19.3x. On Simply Wall St's fair P/E estimate of 17.0x for Constellation Brands, the current multiple sits at a discount to what would typically be expected given its profile in this industry. Despite the recent share price slump and mixed quarterly results, with revenue ahead of expectations but earnings per share missing, the stock still prices in a lower earnings multiple than both peers and this tailored fair benchmark. Overall, Constellation Brands stock appears undervalued on its P/E multiple compared with both sector norms and the model's fair ratio. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where Constellation Brands' valuation puzzle leaves off by spelling out which combinations of future growth, margins and earnings would need to hold for the stock to be worth materially more or less than today's price. Each one treats fair value as a thesis about Constellation Brands' business that you can track over time rather than a one off snapshot, all housed on the Community page. One of the top community narratives on Constellation Brands: 25% undervalued Read one of the top narratives on Constellation Brands Do you think there's more to the story for Constellation Brands? Head over to our Community to see what others are saying! Constellation Brands looks undervalued on market multiples, with its current P/E sitting well below both industry and peer averages and also below the tailored fair ratio Simply Wall St applies. That discount reflects a market that is cautious about the earnings outlook and consumer trends, even as the business continues to repurchase shares and focus on its beer portfolio. For you, the key question is whether that lower multiple is compensation for genuine risk around demand and margins, or whether it has swung too far and leaves Constellation Brands appearing to offer more value than the current price implies. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include STZ. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Constellation Brands says it has a new playbook for its sluggish beer giants, but on its latest earnings call, analysts pressed for the details and tested management's real confidence in a shaky consumer. With its stock down -21% over the last year and trading near lows, the pressure was on for Constellation Brands (STZ) on its latest earnings call. The central question analysts kept circling was whether the new CEO has a real plan to restart the company’s biggest and most important beer brands or just a new set of buzzwords. The answers revealed a company confident in its strategy but deeply cautious about the economy its customers are living in. What's The Playbook For A Stalled Corona? The most pointed challenge of the day zeroed in on the awkward truth: the company’s growth engines, Modelo Especial and Corona Extra, are sputtering. As one analyst framed it, both brands have been a “bit of a challenge,” and there are real “question marks” around getting them back to growth. This cuts to the core of the investment case; if these brands are stuck, growth in smaller names like Pacifico isn’t enough. The new CEO’s response was a tale of two strategies. For Modelo Especial, the job is to finish scaling the brand by closing remaining gaps in distribution and awareness. For Corona Extra, a fully mature brand, the playbook is different. It’s no longer about getting the name out there, but about driving “saliency, relevance, connecting with consumers in the moment.” Management insisted the brand’s health remains "remarkable" but conceded they need to “dial up the everyday activation switch.” The answer described the destination, not the roadmap, leaving the specific tactics for this new playbook an open question. If The Consumer Is Back, Why Isn't The Guidance Up? The second major test was of management’s confidence. The company reported a solid quarter and noted a “modest reacceleration” in consumer activity as gas prices eased. So why not raise the full-year guidance? This was a direct probe into whether management truly believes the turnaround is durable. The answer was blunt: the environment has “low visibility.” The quarter was a rollercoaster, starting strong in March before a “large spike in gas prices” caused consumers to pull back. The CFO was clear that after a good quarter, the company did not want to change its outlook given the uncertainty around macroeconomic pressures. It was a direct, numbers-backed response that signals management sees the consumer as fragile and the recent improvement as tentative at best. The Tell Is The Marketing Check In the end, management’s message was split. They have a high-level strategy to fix their core brands but are openly cautious about the consumer’s ability to spend. The “new playbook” for Corona remains more of a concept than a detailed plan. The real test will be the budget. The CFO flagged that marketing spend will spike to “over 10%” of net sales in the next 2 quarters to support events like the World Cup and the NFL. The thing to watch next quarter is whether that spending actually moves the needle for Corona and Modelo. That number will tell you if the new playbook is working. One step out from the single name: a consumer staples ETF like XLP spreads these company-specific questions across the whole consumer staples group, so no one answer can sink you. It is still a concentrated bet on that one theme, though, which is exactly the gap the portfolio below closes. Where One Stock's Open Questions Fit A Bigger Plan Every stock carries unresolved questions like these, and no earnings call settles all of them. Owning a sector fund spreads that risk across more names, but it is still one bet on one theme: when the theme wobbles, the whole basket wobbles with it. The Trefis High Quality (HQ) Portfolio takes the next step. It holds about 30 businesses diversified ACROSS sectors, selected not on a theme but on quality itself: consistent cash generation, strong margins, and resilient balance sheets. No single unresolved debate, and no single industry, carries your result. It has a track record of outpacing a benchmark that combines the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000. Track the debates on names you like, on top of a core built on quality rather than any one story.

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Constellation Brands (STZ) has moved back onto investors’ radar after first quarter earnings showed lower sales and revenue but higher net income and earnings per share, alongside cautious commentary on margins and segment trends. See our latest analysis for Constellation Brands. Constellation Brands’ recent earnings update and continued share repurchases come against a weaker price backdrop, with the share price down 12.31% over 90 days and the 1 year total shareholder return declining 20.65%. This points to fading momentum as investors reassess growth and risk. If this mix of earnings strength and share price pressure has you thinking about where else capital could work, it might be a good time to scan for other opportunities through the 19 top founder-led companies Constellation Brands now trades well below recent levels even as earnings per share move higher. This puts you at a crossroads: lean in after the pullback, or wait for an even cheaper entry as the valuation picture unfolds next? Against a last close of $131.76, the most followed narrative on Constellation Brands points to a fair value of about $176.09. This puts the current pullback in a different light and frames the recent earnings surprise against a longer term cash flow story. Read the complete narrative. Want to see what assumptions sit behind that cash flow bridge and fair value gap? Revenue, margins, and the earnings multiple all pull in different directions here. Result: Fair Value of $176.09 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Constellation Brands still faces pressure from higher tariffs and input costs, along with softer beer and wine demand that could challenge those cash flow and margin assumptions. Find out about the key risks to this Constellation Brands narrative. Given the mix of caution and opportunity around Constellation Brands, it makes sense to review the full picture for yourself and act promptly while the data is fresh, starting with the 5 key rewards and 2 important warning signs. If Constellation Brands has you rethinking where your next dollar goes, do not stop here. Broaden your watchlist with fresh ideas that match your goals. Target income first and let price moves come second by scanning for companies in the 9 dividend fortresses. Hunt for quality at a potential discount by checking companies highlighted in the 45 high quality undervalued stocks. Limit unpleasant surprises by focusing on financially sturdy companies using the solid balance sheet and fundamentals stocks screener (47 results). This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include STZ. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]