Cannabis stocks surged after President Trump showed interest in CBD access for seniors. Major players like Canopy and Aurora posted significant gains, but Constellation Brands, a major shareholder in Canopy, remained steady. Despite a rough year, STZ stock is overvalued with a high P/S ratio but offers a solid 3% dividend yield.

Constellation Brands reported a revenue decline in Q1 of fiscal 2026, with beer shipments down 3% and wine/spirits down 30.4% due to brand sales. Management forecasts up to 3% beer sales growth but expects a 17-20% decline in wine/spirit sales. Analysts have mixed opinions on STZ stock, with price targets ranging from $123 to $178.23.

While Constellation Brands shows potential as a marijuana play with its Canopy stake and high dividend, challenges like brand divestments and tariffs pose risks. Despite analyst support, the stock’s overvaluation and market challenges make it a cautious investment. Analysts predict a potential 28% increase in stock price, but caution against short-term losses.

Read more at Yahoo Finance: This 1 Cannabis Dividend Stock Yields 3%