12 Undervalued Defensive Stocks for 2025

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

Forward P/E: 13.64

Number of Hedge Fund Holders: 36

Constellation Brands, Inc. (NYSE:STZ) produces, markets, and distributes wine, beer, and spirits. It operates through the Beer, Wine, Spirits, Corporate Operations and Other, and Canopy segments. Despite softer consumer demand due to macroeconomic headwinds, growth in consumer demand for its beer portfolio sequentially expanded in fiscal Q3 2024. At the company level, it once again attained dollar sales growth, outpacing the total consumer packaged goods (CPG) industry, making its mark as a CPG growth leader for nearly 12 years.

The company is presently focusing on premiumization and meeting changing consumer demands by aligning its portfolio with high-margin brands. Its beer segment is growing, and to sustain this growth, the company is expanding its production capacity in Mexico and maintaining a competitive market position in the US high-end beer market.

Constellation Brands, Inc. (NYSE:STZ) projects annual operating cash flow between $2.9 and $3.1 billion, which reflects a solid cash generation outlook. The company is supporting this outlook by focusing on strategic investments, especially in high-demand premium spirits and beer operations. It ranks ninth on our list.