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

$38.52B

Market Cap

$28.01B

0.35%

Potential Profit

9.25%

Hold

Analyst Rating

Buy

Why It's Moving

Hershey Stock Climbs Amid Valuation Debates as Cocoa Woes Spark Innovation Push.

Stock advanced 6.44% over the past month and 30.10% yearly, outpacing the food products industry's average P/E of 19.26 with Hershey's at 29.31, hinting at expected outperformance.
Company ramps up innovation amid cocoa market turmoil, launching new items like HERSHEY'S Milk Chocolate with Caramel and Reese's Filled Pretzels to sustain demand.
Strategic moves include intent to acquire LesserEvil and executive hires like Chief Growth Officer Stacy Taffet, signaling focus on growth amid commodity pressures.

Sentiment:

🐃Bullish

Constellation Brands Trims FY26 Outlook Amid Beer Segment Resilience, Sparking Mixed Investor Signals.

Beer revenue dipped just 1% in the latest period, a sharp improvement from the prior 5% contraction, signaling demand stabilization for premium Mexican imports.
FY26 comparable EPS guidance cut to $11.30-$11.60 from $12.60-$12.90, reflecting cautious macro pressures but paired with steady capex at $1.2 billion.
Distanced from Canopy investment via major write-offs, positioning STZ for potential upside in emerging THC drinks if legalization advances.

Sentiment:

⚖️Neutral

Hershey Stock Climbs Amid Valuation Debates as Cocoa Woes Spark Innovation Push.

Stock advanced 6.44% over the past month and 30.10% yearly, outpacing the food products industry's average P/E of 19.26 with Hershey's at 29.31, hinting at expected outperformance.
Company ramps up innovation amid cocoa market turmoil, launching new items like HERSHEY'S Milk Chocolate with Caramel and Reese's Filled Pretzels to sustain demand.
Strategic moves include intent to acquire LesserEvil and executive hires like Chief Growth Officer Stacy Taffet, signaling focus on growth amid commodity pressures.

Sentiment:

🐃Bullish

Constellation Brands Trims FY26 Outlook Amid Beer Segment Resilience, Sparking Mixed Investor Signals.

Beer revenue dipped just 1% in the latest period, a sharp improvement from the prior 5% contraction, signaling demand stabilization for premium Mexican imports.
FY26 comparable EPS guidance cut to $11.30-$11.60 from $12.60-$12.90, reflecting cautious macro pressures but paired with steady capex at $1.2 billion.
Distanced from Canopy investment via major write-offs, positioning STZ for potential upside in emerging THC drinks if legalization advances.

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.

Related Market Insights

The Business of Joy: Why Celebration Stocks Could Be Your Next Smart Move

Invest in the Celebration Economy. Explore companies profiting from holidays & milestones, offering predictable, recession-resistant revenue. Start with fractional shares on Nemo.