Constellation Brands Stock: 3 Reasons to Buy
Wall Street wasn't thrilled with the latest operating update from Constellation Brands (NYSE: STZ). The alcoholic beverage giant, which owns hit beer brands like Corona and Modelo, reported a big net loss for the selling period that ended in late August. There are supply chain challenges in parts of the business, and the wine and spirits segment is still shrinking.
Look beyond those short-term issues, though, and you'll find some good reasons to like the stock. Let's examine three factors pointing to solid returns ahead for investors willing to hold Constellation Brands' stock through the current volatility.
Constellation Brands is dominating in the beer category. Depletions, a measure of sales to consumers, was up 9% year over year on top of solid growth a year ago. Its Corona franchise expanded despite lots of competition, but Modelo and Pacifico led the way higher.
Source Fool.com
