10 Best Beverage Stocks to Buy According to Analysts

4. Constellation Brands, Inc. (NYSE:STZ)

Average Share Price Upside Potential as of February 20: 45.38%

Constellation Brands, Inc. (NYSE:STZ) is engaged in the production, marketing, and sale of beer, wine, and spirits. The company has operations in the U.S., Mexico, Italy, and New Zealand. It is one of the best beverage stocks to buy according to analysts.

On February 20, the company announced acquiring a minority stake in Hiyo, a local non-alcoholic beverage brand, that caters to health-conscious consumers favoring moderation. This strategic investment by Constellation Brands, Inc. (NYSE:STZ) reflects the ongoing shift in consumer preferences amid a growing trend to seek flavorful alternatives to alcoholic beverages.

On January 10, Constellation Brands, Inc. (NYSE:STZ) declared financial results for the third quarter of fiscal 2025. It reported net sales of $2.46 billion, missing estimates of $2.53 billion and remaining largely flat compared to the prior year’s period. Its earnings per share of $3.25 also fell short of estimates by 6 cents.

Weak consumer spending pulled third-quarter results below expectations. According to a report in Reuters, lower-income Americans are increasingly shifting toward cheaper beer alternatives, which are hurting sales at Constellation Brands, Inc. (NYSE:STZ). As a result, the company has cut annual sales and profits forecast for the full year. It now expects net sales growth of 2% to 5%, and operating income growth of 6% to 9%.

Despite a challenging market environment, Constellation Brands, Inc. (NYSE:STZ) executed $219 million of share repurchases during the quarter, bringing total year-to-date share repurchases to nearly $670 million. On January 9, the company also declared a cash dividend of $1.01 per share, reiterating its commitment to strong shareholder returns.

Wall Street analysts maintain a consensus Buy rating for the stock and anticipate a 45% uptick, on average, in its share price – hinting at a recovery from the plummeting after the Q3 earnings call. Investor sentiment continues to remain strong. According to Insider Monkey’s database for Q4 2024, 51 hedge funds held a stake in Constellation Brands, Inc. (NYSE:STZ), up from 36 at the end of the third quarter.