Jim Cramer Calls Constellation Brands a “Fallen Idol”

Constellation Brands, Inc. (NYSE:STZ) is one of the 21 stocks on Jim Cramer’s radar. During the episode, Cramer called the company a “fallen idol” and said:

“On Tuesday, we get results from former market darling, Constellation Brands. What a fallen idol. There’s so much to unpack here because this consumer packaged goods company is a microcosm of what’s gone wrong with this now pathetic group that used to be the place to go when there’s a slowdown. First: Constellation is an alcohol company, so all their products are being hurt by the GLP-1 drugs, which can blunt your craving for booze. That’s especially true for the big beers, which are Modelo [and] Corona, and then a new popular favorite, Pacifico.

Second: Increasingly, surveys show that there’s a switch from beer to cannabis because smoking weed is theoretically less fattening. I say theoretically because while alcohol has way more calories, it doesn’t give you the munchies. This younger generation cares more about their health than previous ones. Sounds fanciful, but it is true. Third: Constellation said its sales have been hurt by concerns in the Hispanic community about mass deportations. The stock’s been steadily declining all quarter.

It’s been downgraded by analysts jumping ship from the company that used to beat and raise and beat and raise over and over and over again. Used to be a big position for my trust. That was then. Now, we expect Constellation to miss. We’ll get the results Tuesday night, and the conference call will start on Wednesday morning. You’ll probably see the stock jump up when it reports. That’s what it typically does, and then it declines through the rest of the day. So let’s be careful.”

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

Constellation Brands (NYSE:STZ) produces and markets a wide range of well-known beer, wine, and spirits brands. The company distributes its products through wholesalers, retailers, and licensed venues.

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