Constellation Brands (STZ) reporting earnings on Wednesday 6/30 before the open with the Street looking for $2.36 on $2.02B. Next quarter is guided to $2.83/$2.33B while the FY is guided to $10.06/$8.59B. Shares have traded higher in four of the last six with a max move of 6.25% and an average closing move of 4%. The current implied move is 4.3%. Shares are back near support of a multi-month range and the value-area low for 2021 with room back higher to $240. Support is lower at $210. The $45.6B company trades 19.4X earnings, 5.3X sales, and 33.5X FCF. STZ has seen strong performance in beer sales over the last year as they hit a big refresh cycle for many of their top brands. Modelo is poised for another big year as well with new product launches like Chelada Pina Picante and high-profile sponsorships like the UFC. Corona should continue to grow as well, especially within on-premise where STZ has a number of programs ready to capitalize in areas like live sports and music. They also continue their ‘premiumization strategy’ within wine as they ditch lower-end brands. Analysts have an average target for shares of $250 with a Street High $305. Cowen out on 6/24 noting they would be a buyer on any post-earnings weakness. The firm thinks it remains a favorite idea as the company continues to remain a beneficiary of other company’s market share losses and has close to $4B in authorized share repurchases which is not embedded in 2022 guidance. OTR Global downgraded shares to 6/18 citing checks with U.S. beer distributors and buyers indicated that supply problems are likely to persist through 2021 while inventory shortages and tepid promotions limited Constellation’s year-over-year volume trends during fiscal Q1.Short interest is less than 1%, the lowest in a decade. Hedge fund ownership fell 3.5% in Q1.