Constellation Brands Q2 Preview: Stock Hits 11-Year Lows, Market Expert Warns of Catching 'A Falling Knife'

Alcohol company Constellation Brands (NYSE:STZ) looks to win back investors after shares hit 11-year lows on Monday, one day before the company reports second-quarter financial results after market close. Here are the earnings estimates, what experts are saying and key items to watch. • Constellation Brands stock is gaining positive traction. Why are STZ shares climbing? Constellation Brands Q2 Earnings Estimates Analysts expect Constellation to report second-quarter revenue of $2.54 billion, up from $2.48 billion year-over-year, according to data from Benzinga Pro. The company has beaten analyst estimates for revenue in four straight quarters and in eight of the last 10 quarters overall. Analysts expect Constellation to report second-quarter earnings per share of $3.57, down from $3.63 in last year’s third quarter. The company has beaten analyst estimates for earnings per share in four straight quarters and in nine of the last 10 quarters overall. Read Also: We Asked 3 AI Chatbots for the Week's Top Stock Picks: Applied Digital Tops the List What Experts are Saying With a string of recent double beats, investors are reminded that Constellation Brands stock rallied higher after five of the past six earnings reports, according to Freedom Capital Chief Market Strategist Jay Woods. Woods said that doesn’t tell the story with shares now trading at 52-week lows. "Investors will be watching whether demand for Modelo and Corona has improved after a difficult stretch for beer sales," Woods said in a weekly newsletter. "A steadier sales trend and confidence in the full-year outlook could give the stock a reason to rebound." Looking at the Constellation chart and technicals, Woods says the price action is in "uncharted territory" for daily and weekly trends. "Trying to catch a falling knife is a dangerous proposition and owning stocks in downtrends is not a prosperous strategy." Woods highlights relief target levels of $121 and $127, but also sees an ugly picture to the downside with the $111 lows and the potential to break that level and go back to the $100 level. Here are recent analyst ratings on Constellation Brands and their price targets: Wells Fargo: Maintained Overweight rating, lowered price target from $170 to $140 RBC Capital: Maintained Outperform rating, with price target of $185 JPMorgan: Maintained Neutral rating, lowered price target from $166 to $133 UBS: Maintained Buy rating, lowered price target from $168 to $145 Key Items to Watch Constellation Brands, which imports beer to the U.S., has previously been one of the companies hurt by tariffs on Mexico and Canada. That could be a trend to watch in the quarter. Modelo Especial and Corona Extra have grown in size and continue to be highlighted by the company as key opportunities for future growth. With revenue growth and recent earnings beats, investors and analysts will likely be looking for a perfect quarter of a double beat and strong guidance to help reward shares. Previous tariff disruptions may have taken the stock off of investors’ radars, along with trends like lower alcohol sales in the U.S. Another item that may be taking Constellation Brands out of style is Berkshire Hathaway (NYSE:BRK)(NYSE:BRK) completely exiting its stake in the alcohol company in the second quarter. STZ Stock Price Action Constellation Brands stock is up 0.84% to $113.82 on Monday. The stock hit a new 11-year low of $110.60 on Monday, hitting levels last seen in January 2015 for the stock. Constellation Brands stock is down 20.8% year-to-date in 2026. Read Also: How To Earn $500 A Month From Constellation Brands Stock Ahead Of Q2 Earnings Photo: Shutterstock