5 Best Liquor Stocks to Buy Now

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

Number of Hedge Fund Holders: 41

Constellation Brands, Inc. (NYSE:STZ) is a New York-based producer of beer, wine, and spirits.

On August 2, Andrew Strelzik at BMO Capital initiated coverage on Constellation Brands, Inc. (NYSE:STZ) with an Outperform rating and a target price of $290. The target price offers a potential upside of nearly 19% from the closing price as of August 15. The analyst believes that Constellation Brands, Inc. (NYSE:STZ) offers investors an attractive risk and reward profile and a multi-year growth story.

Furthermore, Constellation Brands, Inc. (NYSE:STZ) stock is trading at a discount compared to its competitors. Analysts think there is a potential upside to the company’s beer revenue forecast for FY23, and earnings growth is expected to continue the upward momentum in FY24 as well. Experts believe the company is well-positioned across the beer, wine, and spirits segments.

ClearBridge Investments shared its bullish outlook on Constellation Brands, Inc. (NYSE:STZ) in its Q2 2022 investor letter. Here’s what the firm said:

”Our investment philosophy is to lean into growth, owning companies that control their own destinies, are taking market and mind share and are levered to secular tailwinds such as elevating efficiency and implementing data-driven decisions. At the same time, we have been tactically pivoting the portfolio to favor companies with less risk to near-term earnings and revenue numbers. Monster Beverage (MNST) and Constellation Brands, Inc. (NYSE:STZ), two beverage makers we added at advantageous prices in 2021, are examples of steady compounders that have held up well through the equity downturn.”

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