Hershey vs Constellation Brands

This page compares Hershey and Constellation Brands, detailing their business models, financial performance, and market context. It offers an accessible overview of how each company operates, the markets they target, and the factors that influence their strategies. The aim is neutral, informational content for readers exploring these stocks. Educational content, not financial advice.

This page compares Hershey and Constellation Brands, detailing their business models, financial performance, and market context. It offers an accessible overview of how each company operates, the mark...

Comparison Snapshot

Key Financial Metrics

HSY

Metric

STZ

$45.14B

Market Cap

$25.89B

-13.56%

Potential Profit

18.04%

Hold

Analyst Rating

Buy

Why It's Moving

HSY Stock Warning: Why Analysts See -15% Downside Risk

Q4 revenue jumped 7% to $3.1B, topping estimates, with adjusted EPS of $1.71 crushing forecasts by 22%, driving the sharp post-earnings rally.
FY2026 EPS guidance of $8.20-$8.52 far exceeded consensus, signaling robust profit restoration, yet stock's 52% 52-week gain leaves it overvalued per analyst means.
DA Davidson lifted target to $243 on February 6 citing innovation pipeline and brand reinvestment, but 'Neutral' stance underscores threats from GLP-1 drugs and program shifts.

Sentiment:

🐻Bearish

Constellation Brands Beats Q2 Estimates Yet Sticks to Cautious Full-Year Outlook Amid Economic Headwinds

Q2 revenue and EPS surpassed analyst forecasts, highlighting robust underlying demand despite softer trends.
Maintained reduced fiscal 2026 outlook due to inventory rebalancing and economic challenges impacting beer shipments.
Warren Buffett's Berkshire Hathaway recently boosted its stake, signaling long-term confidence in the beverage giant.

Sentiment:

⚖️Neutral

HSY Stock Warning: Why Analysts See -15% Downside Risk

Q4 revenue jumped 7% to $3.1B, topping estimates, with adjusted EPS of $1.71 crushing forecasts by 22%, driving the sharp post-earnings rally.
FY2026 EPS guidance of $8.20-$8.52 far exceeded consensus, signaling robust profit restoration, yet stock's 52% 52-week gain leaves it overvalued per analyst means.
DA Davidson lifted target to $243 on February 6 citing innovation pipeline and brand reinvestment, but 'Neutral' stance underscores threats from GLP-1 drugs and program shifts.

Sentiment:

🐻Bearish

Constellation Brands Beats Q2 Estimates Yet Sticks to Cautious Full-Year Outlook Amid Economic Headwinds

Q2 revenue and EPS surpassed analyst forecasts, highlighting robust underlying demand despite softer trends.
Maintained reduced fiscal 2026 outlook due to inventory rebalancing and economic challenges impacting beer shipments.
Warren Buffett's Berkshire Hathaway recently boosted its stake, signaling long-term confidence in the beverage giant.

Sentiment:

⚖️Neutral

Investment Analysis

Hershey

HSY

Pros

Hershey delivered stronger-than-expected Q3 2025 sales and raised its full-year outlook, reflecting resilient demand for core confectionery products.
The company is advancing productivity initiatives, including automation expected to generate $150 million in cost savings for 2025, offsetting some inflation pressure.
Hershey maintains a solid balance sheet with $1.16 billion in cash and continues to pay a dividend yield above 3%.

Considerations

Reported earnings per share are forecast to fall sharply in 2025, pressured by higher commodity costs, tariffs, and an unfavourable sales mix.
Input cost inflation and anticipated tariff expenses of $160–170 million present persistent margin headwinds not fully offset by savings initiatives.
The stock trades at a forward PE ratio above 26, potentially limiting near-term upside relative to sector peers.

Constellation Brands

STZ

Pros

Constellation Brands dominates the US high-growth Mexican import beer category, with Modelo and Corona driving 84% of revenue and consistently strong market share.
The company generates robust free cash flow, supports a ~2.4% dividend yield, and has a healthy balance sheet for a consumer staples firm.
Constellation’s strategic pruning of lower-margin wine and spirits assets focuses capital on higher-return beer and premium beverage opportunities.

Considerations

Exclusive US rights for Modelo and Corona restrict international beer growth, leaving the company heavily reliant on a single geography for its core profit driver.
Ongoing exposure to Canopy Growth, a struggling cannabis investment, creates potential earnings volatility and capital allocation concerns.
Evolving US alcohol consumption trends and regulatory scrutiny on marketing and distribution could pressure future growth rates.

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