10 Best Falling Stocks to Invest in Right Now

8. Constellation Brands Inc. (NYSE:STZ)

52 Week Range: $176.51 – $274.87

Current Share Price: $178.96

Number of Hedge Fund Holders: 36

Stock Upside Potential: 34.09%

Constellation Brands Inc. (NYSE:STZ) is a beverage company that produces, imports, markets and sells beer, wine, and spirits. The company provides beer primarily under the Corona Extra, Corona Familiar, and Corona Hard Seltzer brands. The stock has taken a significant beating on management lowering fiscal 2025 earnings per share guidance to between $13.40 and $13.80 from an earlier guidance of $13.60 to $13.80.

The lower-than-expected EPS guidance comes with concerns that consumers will revert to normalized spending amid the prevailing economic conditions. Amid the concerns, Constellation Brands Inc. (NYSE:STZ) is expected to sustain double-digit percentage sales growth in its core beer business. The growth is expected to continue as brands like Modelo and Corona continue to gain market share in the highly competitive sector.

Constellation’s alcoholic beverage business generates an operating profit margin of over 30%. This diverse and extremely successful beer company has many positive aspects, especially considering its exceptional capacity to generate free cash flow. The company is also expected to benefit by aligning its portfolio with high-margin brands to meet changing consumer preferences.

Maintaining market leadership in the high-end beer segment in the United States and increasing production capacity in Mexico are critical success factors. Constellation Brands Inc. (NYSE:STZ) has embraced premiumization as a strategy by selling off less lucrative brands like SVEDKA and supporting high-growth premium labels. Its future profitability and market positioning depend on operational investments, particularly in Mexico’s production capacity.