10 Best Liquor Stocks To Buy According to Short Sellers

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

Short % of Shares Outstanding: 1.58%

Constellation Brands, Inc. (NYSE:STZ) is engaged in the production, import, marketing, and sale of some of the world’s most iconic beer, wine and spirits brands. Based in New York, the company has operations in the US, Mexico, New Zealand, and Italy.

Constellation Brands, Inc. (NYSE:STZ) has remained in the headlines in the American alcohol sector after its popular Modelo Especial brand became the Best-Selling Beer in America following the controversy with Bud Light in 2023. Since then, the sales gap between the two brands has only widened further and Constellation’s beer business has continued to flourish. In Q2 of 2025, the company’s beer segment (responsible for raking in the majority of its revenue) continued to deliver strong financial performance with net sales and operating income growth of nearly 6% and 13%, respectively. Its core brands continued their uptick during the quarter as Modelo Especial grew by 11%, while Pacifico surged by 21%.

A major factor benefiting Constellation Brands, Inc. (NYSE:STZ) is the rapidly growing popularity of Mexican beers in the US. Data from the Beer Institute revealed that beer imported from Mexico made up about 81% of the total imported beer volume to the US in 2023, up from 61% ten years ago. What’s more is that this growth is not attributed to America’s Hispanic population alone. According to Bernot, more non-Hispanic American households (61%) purchased Modelo than Hispanic households (39%) last year. However, the growing Hispanic demographic certainly helps and America’s Hispanic population (a segment that makes up over 50% of the company’s client mix) is growing almost twice as fast as its general population, so brands like Modelo, Pacifico, and Corona are expected to stay in high demand. Moreover, Constellation’s relationship with Reyes Beverage Group, the largest beer distributor in America, is also a major contributing factor to its success.

However, Constellation Brands, Inc. (NYSE:STZ) could be among the companies that stand to lose when Donald Trump takes office this month. The President-elect has stated that he intends to slap 25% tariffs on imports from Mexico, and Constellation’s high reliance on Mexican beer imports could become a serious problem. Hence, the company is making sure it has adequate inventory in place here before Trump reassumes power. It is also assessing cutting costs elsewhere to absorb the rumored tariffs, or incrementally raising its prices, but that will carry its risks.

With 36 elite money managers tracked by IM holding a stake in the company at the end of Q3 2024, Constellation Brands, Inc. (NYSE:STZ) is the Best Beer Stock to Buy Now According to Hedge Funds.