Berkshire Boosts Stake in Constellation as STZ Rises 1.63% Amid 372nd Volume Rank

Constellation Brands (STZ) rose 1.63% on August 22, with a trading volume of $0.29 billion, ranking 372nd in the market. The stock's performance aligns with broader sector rotations into defensive positions as investors rebalance portfolios amid shifting market dynamics. Notably, Warren Buffett's Berkshire Hathaway has significantly increased its stake in Constellation, holding 13.4 million shares following 11.6% growth in Q2. The move positions Berkshire as a 6.6% owner of STZ's market capitalization, signaling confidence in the beverage giant's long-term resilience.

Constellation's portfolio of brands including Corona and Modelo benefits from the inelastic demand characteristics of the alcoholic beverage sector. Despite a 31% decline from its previous trading range, the company reported a $523.8 million net income in Q1 2026, reversing a $370.6 million loss in Q4 2025. This turnaround reflects operational improvements and $192.8 million in capital expenditures for long-term growth. Institutional ownership remains strong at 77.34%, with a forward P/E ratio of 13.00 indicating undervaluation relative to fundamentals.

Technical indicators suggest potential for near-term recovery. The stock's RSI of 39.03 approaches oversold levels while testing support at $164, a key area within a long-term uptrend. Analysts project a 12-month price target of $213.74, implying nearly 30% upside from current levels. Dividend growth remains a highlight, with nine consecutive years of increases and a 10-year average growth rate of 13.67%, offering income stability amid market volatility.

A backtest of a strategy purchasing the top 500 volume stocks and holding for one day from 2022 yielded a 31.52% total return over 365 days. The approach generated an average 0.98% daily return with a Sharpe ratio of 0.79, though it experienced a maximum drawdown of -29.16%, underscoring market risk exposure during downturns.