Why Constellation Brands (STZ) Is Among Last Week’s Biggest Losers?

We recently published a list of These 10 Firms Were Last Week’s Biggest Losers. In this article, we are going to take a look at where Constellation Brands, Inc. (NYSE:STZ) stands against other firms that were last week’s biggest losers.

Ten companies fell significantly last week, mirroring a broader market downturn, as investors sold off positions following disappointing news and data that weighed heavily on market sentiment.

On Friday, the Dow Jones recorded its largest weekly drop, falling 1.07%, while the S&P’s main index and Nasdaq declined by 0.71% and 0.62%, respectively.

To come up with this week’s top decliners, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A winemaker examining a glass of red wine from a barrel in a cellar.

Constellation Brands, Inc. (NYSE:STZ)

Last week’s trading saw Constellation Brands’ (NYSE:STZ) stock price drop by 16.98 percent to finish at $181.81 apiece versus the $219 registered last Friday after missing revenue targets.

The company in its recent earnings report reported flat year-on-year sales of $2.46 billion. Its non-Generally Accepted Accounting Principles (non-GAAP) profit of $3.25 per share also missed analyst expectations by 1.9 percent.

Meanwhile, earnings before interest, tax, depreciation, and amortization (EBITDA) also missed analyst estimates by 4.6 percent to $912.3 million.

Investor confidence was dampened further after its management lowered its full-year adjusted EPS guidance by 0.7 percent to $13.60 per share to reflect “reduced growth expectations for net sales and operating income.”

“We continue to face the subdued spend and value seeking behaviors that emerged among legal drinking age consumers in the second quarter,” the company said.

Overall, STZ ranks 9th on our list of firms that were last week’s biggest losers. While we acknowledge the potential of STZ as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than STZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.