Constellation Brands shares rose 0.4% in early premarket trading on Monday, ahead of the company's quarterly report, which is scheduled to be released after the market closes.

At a time of tepid alcohol demand, the company is facing the double whammy of higher costs for aluminium cans and beer imports tied to President Donald Trump's trade tariffs. Constellation stock dropped to its lowest level in over five years on Sept. 23 and has seen price targets cut by brokerages, including UBS, Goldman Sachs, and Jefferies, in recent weeks.

Analysts expect the company to report a 15.8% decline in revenue for the second quarter, according to Koyfin data. Sales declined 5.5% in the first quarter. Adjusted EPS is expected to decline by 21.1%, also marking the second consecutive quarter of decline.

Notably, Constellation Brands reduced its fiscal year 2026 outlook on Sept. 2, citing macroeconomic headwinds affecting consumer demand. However, weeks late, the stock rose sharply, 8% from Sept. 23 to date, as investors adjusted their holdings ahead of the quarterly report.

In its investor note, UBS stated that with the outlook lowered, the Q2 results would unlikely be a major catalyst. However, on Stocktwits, the retail sentiment was 'bullish' as of early Monday, unchanged from a week ago.

Currently, 15 of the 25 analysts covering the stock rate it 'Buy' or higher, eight rate it 'Hold,' and two rate it 'Sell,' according to Koyfin. Their average price target is 174.78, implying a 23% upside from the stock's last close. Year-to-date, STZ stock is down 37.5%.

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