Stock Analysis | Constellation Brands Outlook - Bearish Signals and Mixed Analyst Ratings

Market Snapshot

Headline Takeaway: Constellation Brands is experiencing a price decline of -5.43% and is underpinned by bearish signals in its technical indicators, suggesting caution for investors.

News Highlights

Recent news developments affecting the beverage and consumer goods sectors include:

• Afterdream Launch: A new brand of microdosed, non-alcoholic cannabis beverages debuted, offering a non-alcoholic alternative to consumers. This may indirectly impact Constellation Brands' traditional beverage portfolio.
• Coca-Cola Expansion: Coca-Cola Southwest Beverages is investing $36 million into expanding its Oklahoma City hub, signaling growth in the beverage logistics sector, which could influence broader market sentiment for similar companies like Constellation Brands.
• ETF Industry Growth: Assets invested in the ETF industry in the Asia-Pacific (excluding Japan) reached a record $1.25 trillion at the end of April, indicating a broader trend of institutional investment that could indirectly affect Constellation Brands as a market participant.

Analyst Views & Fundamentals

Average Rating Score (Simple Mean): 3.92

Weighted Rating Score (Performance-Weighted): 4.31

Rating Consistency / Dispersion: Analysts are somewhat divided in their outlooks, with a mix of "Strong Buy," "Buy," and "Neutral" ratings. This suggests that while some analysts are optimistic, others remain cautious.

Alignment with Price Trend: Despite the mixed analyst ratings, the stock is currently in a price decline, indicating that the market is responding more to bearish signals than to analyst optimism.

Key Fundamental Factor Values and Model Scores:

• EV/EBIT: 76.15 (Internal diagnostic score: 1)
• Price-to-Sales (PS): 10.93 (Internal diagnostic score: 0)
• Return on Assets (ROA): -5.12% (Internal diagnostic score: 2)
• Non-Current Assets / Total Assets (%): 84.20% (Internal diagnostic score: 0)
• Total Profit (YoY Growth Rate %): 358.03% (Internal diagnostic score: 3)
• Net Cash Flow from Operating Activities (YoY Growth Rate %): -26,748.78% (Internal diagnostic score: 0)
• Cash-UP: 59.42% (Internal diagnostic score: 1)
• Return on Equity (ROE): -14.50% (Internal diagnostic score: 1)
• Net Profit Margin (NPM): -40.51% (Internal diagnostic score: 2)
• Diluted Earnings per Share (YoY Growth Rate %): -16.88% (Internal diagnostic score: 0)

Money-Flow Trends

Big-Money vs. Retail Flows:

• Overall Trend: Negative (Internal diagnostic score: 7.75)
• Small-Trend: Positive (Small Inflow Ratio: 50.38%)
• Medium-Trend: Negative (Medium Inflow Ratio: 49.09%)
• Large-Trend: Negative (Large Inflow Ratio: 47.59%)
• Extra-Large-Trend: Negative (Extra-Large Inflow Ratio: 48.16%)
• Overall Inflow Ratio: 48.08%
• Block Inflow Ratio: 47.84%

This suggests that while smaller investors are showing some interest, larger institutional investors are withdrawing, potentially signaling caution or bearish expectations in the market.

Key Technical Signals

Indicator Details:

• Williams %R (WR) Oversold: 3.3 (Internal diagnostic score). This is considered a neutral rise signal based on historical data with an average return of -0.03% and a win rate of 52.11%.

Recent Indicators by Date:

• 2025-08-21: WR Oversold
• 2025-08-26: WR Oversold
• 2025-08-19: WR Oversold
• 2025-08-18: WR Oversold
• 2025-08-20: WR Oversold

Key Insights: Technical indicators suggest that the market is in a volatile state with no clear direction. Bearish signals are dominant (1 bearish vs 0 bullish), and the overall trend is weak, with a suggestion to avoid the stock.

Conclusion

With a fundamental score of 9.59 and a technical score of 3.3, there is a clear divergence between the fundamental outlook and the technical bearish signals. While the fundamentals suggest strong performance, the technical indicators are weak. Investors may want to wait for a clearer directional signal or monitor the stock's performance over the next few weeks to see if the bearish trend reverses. Given the mixed analyst ratings and weak technical signals, it may be wise to avoid aggressive buying at this time.