Constellation Brands: I'm Not Sure Berkshire's Bet Will Be A Toast (Earnings Preview)
Summary
- Constellation Brands faces growth stagnation, tariff headwinds, and M&A missteps, making its future outlook weak despite its strong beer portfolio.
- Financials show high margins and shareholder returns, but flat revenue and moderate dividend growth don't justify holding for income or growth.
- Valuation appears stretched, with an intrinsic value below the current price and negative momentum increasing downside risk, especially before earnings.
- Despite Berkshire's investment, I recommend selling Constellation Brands and seeking more reliable, predictable stocks for your portfolio.
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