12 Best FMCG Stocks To Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 36

Constellation Brands, Inc. (NYSE:STZ) is a major alcohol and beverage company that produces and sells beer, wine, and spirits. It is one of the largest beer importers in the United States with popular brands such as Corona Extra, Modelo Especial, and Pacifico. The company produces these beers in Mexico but sells them exclusively in the United States.

On February 3, RBC Capital Markets maintained their Buy rating on the stock and kept the price target of $293 constant. During the fiscal third quarter of 2025, Constellation Brands, Inc. (NYSE:STZ) reported increasing its net sales for the beer segment by 3%. Management attributed this growth to higher shipment volumes. Moreover, its core brands continued to contribute growth with Modelo Especial growing 3% and Pacifico growing 20% year-over-year.

There have been doubts that the company might face trouble with Donald Trump’s announcement of 25% tariffs on imports from Mexico. However, management has made sure to arrange adequate inventory and plans to place cost-cutting measures to absorb tariffs. Constellation Brands, Inc. (NYSE:STZ) is one of the best FMCG stocks to buy according to hedge funds.

Coho Relative Value Equity Strategy stated the following regarding Constellation Brands, Inc. (NYSE:STZ) in its Q2 2024 investor letter:

“We also eliminated Conagra (CAG) in favor of a better risk/return for Constellation Brands, Inc. (NYSE:STZ). We are encouraged by the Constellation Board’s decision to eliminate the dual voting share class and reprioritize capital allocation away from acquisitions and towards returns to shareholders. With capital spending expected to decline and leverage near the company’s target, more cash flow should be available for shareholders. STZ is now focused on the higher growth and the higher margin premium beer category, which they dominate with Corona Extra, Modelo Especial and Pacifico. Additionally, the Wine and Spirits business, which has been disappointing is no longer a meaningful part of STZ’s business as it now accounts for less than 10% of overall earnings. We expect STZ to deliver low double-digit growth in both earnings and dividends for many years to come, which is consistent with the Board’s recent approval of a 13.5% dividend hike.”