Is Constellation Brands Stock a Buy After Q1 Results?

Constellation Brands (NYSE: STZ) investors had high hopes heading into its latest earnings update. The alcoholic-beverage giant has been winning market share despite huge demand swings around niches like hard seltzer. That success, plus the prospect for rising cash returns over the next several years, has attracted investors to the stock, which has outperformed the market so far in 2022.

Let's take a closer look at the first-quarter 2022 update and why it implies solid growth ahead for the business.

Sales trends held up well, especially considering all the volatility around consumer demand right now. Constellation achieved a 9% boost in depletions, a measure of sales to consumers, as it gained market share in both the premium and the broader beer segments. That boost marked a slight acceleration compared to the prior quarter's results.

Source Fool.com