How to buy Constellation Brands shares (STZ)

By:

James Knight

James is a lead editor for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets. His ... read more.

Updated: Jul 6, 2023

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This page gives you an overview of the history of Constellation Brands, its recent performance, and how it might perform in the future. You can find a step-by-step guide to getting your first share and a checklist of things to look out for.

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To get Constellation stock straight away, head to one of the brokers below. You can go straight to their website and sign up using the links in the table, or read on to learn more about the company first.

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How to buy Constellation Brands stock, a step-by-step guide

The process of getting shares in Constellation Brands isn’t massively complicated, so don’t worry even if you’re new to stock investing. These are the steps to follow in order to complete your investment:

1. Choose a broker. You will need to use an online brokerage platform. There are many different options to choose from, each with their own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure.
2. Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally you can expect to have to provide your name, email address, phone number, and some form of photo identification.
3. Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest in Constellation Brands shares.
4. Place an order for STZ stock. Search for Constellation Brands’s ticker symbol (STZ) and see the current price at which the stock is trading. If you’re happy with the price, enter the amount of shares you wish to own and place your order.
5. Execute your order. Once you have placed your order, your broker will automatically execute it for you and your Constellation Brands shares will be listed in your account. Congratulations, you’ve just bought shares in Constellation Brands.

What is Constellation Brands? And should I invest?

A major producer of alcoholic products, most notably beer, wine, and spirits. Formed in 1945, the company began by selling wine by the barrel in New York State and now owns more than 100 brands across the alcohol spectrum, including Corona Extra, Modelo Especial, and Kim Crawford wines.

Constellation was still a predominantly wine-based company until the 1990s but now the Corona and Modelo beer brands alone are responsible for two-thirds of its annual revenue. Along with its already diverse range it’s moving into new areas too, such as recreational cannabis where it owns a stake in the Canopy Growth. 

Alcohol stocks have tended to be quite reliable as even in tough economic times people still drink. The pandemic was slightly different but Constellation is well-placed to benefit from the rebound, as sales to bars and restaurants increase again. You also might want to invest because it’s something of a value stock, available more cheaply relative to its revenue than hyped-up competitors like the Boston Beer Company.

How has the company performed in recent years?

The last decade has been a story of near-constant success, where the stock price grew almost 1000% between 2011 and 2021. Since its first major foray into the acquisitions market in the 1990s, Constellation has been extremely proactive in adding new brands to the portfolio and the pace of purchases has kept up throughout the last ten years.

One of the biggest acquisitions was to take over the Modelo brand from AB InBev in 2013, along with the licenses to brew it, along with Corona, in the US. It then bought the Casa Noble tequila brand the following year. Thanks to this kind of activity, Constellation quadrupled its revenue between 2012 and 2021.

It hasn’t all been easy, of course. The pandemic sent shockwaves through the stock market and particularly hurt companies who rely on the hospitality sector. Despite seeing its value halve during the worst week of the crisis in March, direct-to-consumer sales held up so well that the company was able to recover its losses before the end of November.

Is it a good time to buy Constellation Brands shares now?

It usually has been a good time and there aren’t many clouds on the horizon in the immediate future. It might not be able to recreate the stirring growth of the past decade but it has proven able to weather difficult environments and consistently pays a dividend.

Even if the results aren’t likely to be as eye-popping as before, there’s no reason the company can’t continue to grow steadily. It’s already taken steps to benefit from the first mover advantage if marijuana is legalised in the US. On top of that it has products that can eke out more market share from younger drinkers, like its Corona hard seltzer.

Those are all good signs that Constellation isn’t stagnating and continues to show the ability to be flexible and move with the times. It’s also big enough to benefit from economies of scale and a huge distribution network. You should always follow the latest news to stay on top of any developments but its prospects are rosy for now.

Buying, selling and trading Constellation Brands shares for beginners

What to do before buying shares

You should always take the time to research a stock fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment. 

With that in mind, here’s a checklist to run through before you start.

1. Research the company. You should always examine the fundamentals of a company first. What is Constellation Brands? How did the company get its start? How did it grow? Is Constellation Brands’s revenue and profit growth picking up? Is the company innovating? The more you know about Constellation Brands, the better positioned you’ll be to make smart investment decisions.
2. Make sure you understand the basics of stock investing. Before getting involved in the stock market, make sure you have an understanding of how it works. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
3. Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
4. Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
5. Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Our platform reviews can help you find the right broker for you.
6. Examine broader market conditions. No stock exists in a vacuum, and it’s always important to analyse the general trends of the stock market as a whole before investing. If a bear market is setting in and stock prices are falling, it’s best to wait it out and invest your money later when the stock is cheaper. If, however, the market is looking bullish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. Our news can help you keep on top of movements in the financial markets.

What is the difference between buying, selling, and trading shares?

If you’re new to stock investing, then it’s important to understand the basics of how to buy, sell, and trade Constellation Brands shares. Here’s a quick run-through of what’s involved in each.

Buying Constellation Brands

This process involves finding a broker and placing an order for Constellation Brands stock, as outlined in the steps further up this page. Ideally you want to time your investment when the stock’s price is low so that you can profit by selling the shares after they increase in value.

Selling Constellation Brands

When you sell any Constellation Brands shares you have bought, you’ll want to do so at a higher price than the one at which you bought to earn a profit. 

When you sell is up to you. You might decide to hold for a long period of time, hoping to benefit from the company growing steadily throughout. Or, if you see that Constellation Brands’s stock is already up a lot compared to the price you bought it and you’ve noticed that the stock market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the stock has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.

Trading Constellation Brands

Trading is the same process, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.

You can trade Constellation Brands shares through buying and selling shares, or by trading with CFDs. These allow investors to speculate on stock prices and trade with leverage in pursuit of bigger gains. CFDs trading is explained further in the next section, but it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.

Share dealing vs CFD trading

When it comes to investing in any stock, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors thinking long term tending to go for share dealing, and those looking for short term gains pursuing a more aggressive trading strategy.

Here’s a quick summary of the two approaches, and the pros and cons of each.

Share dealing 

Share dealing refers to the practice of buying and holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from dividend payments or an increase in the stock’s price over time.

When investing your money this way, it is important to do thorough fundamental analysis of the company in which you are investing. You want to put your money in a stock you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter term peaks and troughs.

Pros

• Can build wealth over time to achieve financial goals
• Don’t need to be very reactive to short-term market movements
• Some stocks will give you an income through regular dividend payments

Cons

• Takes a long time to realise any profits
• Your capital is tied up in stocks and cannot be used for other investments

CFD Trading 

If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. Stock trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of a stock without having to take ownership of it. When CFD trading, investors are looking to buy and sell stocks fast to profit from short-term fluctuations in value.

One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into STZ shares and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.

When trading using CFDs, it is key to be skilled at technical analysis and reading stock price charts. As you’re trading stocks quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its stock price will rise and fall minute-by-minute.

Pros

• Can generate fast profits if you read the market right 
• Some platforms allow you to trade with leverage
• Prevents your capital being tied up so you can take advantage of investment opportunities

Cons

• Trading with leverage is risky and can lead to big losses
• Doesn’t necessarily generate growth over the long term

Consider which approach suits you best and craft an investment strategy that works for you. If you need more information, then simply head to our education section to learn more about investing in stocks.

How to choose a broker

With the wide variety of online brokers available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large these are the aspects you should be considering when selecting a broker:

• Range of stocks available. The most important thing is that you can actually use the broker to find the shares you’re looking for. Some brokers offer more stocks than others, and many will allow you to trade other assets, such as forex and commodities.
• Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
• Regulation. You should only use regulated brokers. Unregulated brokers can be risky and offer little to no protection if the business were to fail while you had funds in your account.
• Payment methods available. You might want to fund your trading account using a specific payment method, such as PayPal. Not all brokers accept every payment method, but using our comparisons you can search only the brokers that support the option you’re looking for.
• Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
• Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.