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...
Why It's Moving
Hershey Flashes Golden Cross as Technicals Signal Short-Term Rally Potential
- Golden cross formed as HSY broke above its 20-day moving average, reinforcing momentum after reaching key support levels.[1]
- Nine earnings estimates raised with none lowered in the past two months, boosting the consensus outlook and Zacks Rank #3 (Hold) status.[1]
- Shares up 0.86% to $181.61 on December 11, extending a multi-week advance amid steady volume and favorable technical signals.[2]
Constellation Brands slashes fiscal 2026 outlook amid beer slowdown and wine woes.
- Comparable EPS guidance cut sharply to $11.30-$11.60 from $12.60-$12.90, signaling margin squeeze from lower volumes and operating deleveraging.[1]
- Beer segment now expects operating income drop of 7-9% versus prior growth outlook, hit by softer buy rates among key Hispanic consumers and added tariffs.[1]
- Wine and spirits hit by goodwill impairments from U.S. market declines, while enterprise sales forecast shifted to 4-6% organic decline.[1]
Hershey Flashes Golden Cross as Technicals Signal Short-Term Rally Potential
- Golden cross formed as HSY broke above its 20-day moving average, reinforcing momentum after reaching key support levels.[1]
- Nine earnings estimates raised with none lowered in the past two months, boosting the consensus outlook and Zacks Rank #3 (Hold) status.[1]
- Shares up 0.86% to $181.61 on December 11, extending a multi-week advance amid steady volume and favorable technical signals.[2]
Constellation Brands slashes fiscal 2026 outlook amid beer slowdown and wine woes.
- Comparable EPS guidance cut sharply to $11.30-$11.60 from $12.60-$12.90, signaling margin squeeze from lower volumes and operating deleveraging.[1]
- Beer segment now expects operating income drop of 7-9% versus prior growth outlook, hit by softer buy rates among key Hispanic consumers and added tariffs.[1]
- Wine and spirits hit by goodwill impairments from U.S. market declines, while enterprise sales forecast shifted to 4-6% organic decline.[1]
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Explore BasketInvestment 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.
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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