5 Best Wine Stocks To Buy Heading Into 2023

In this article, we discuss 5 best wine stocks to buy heading into 2023. If you want to see more stocks in this selection, check out 11 Best Wine Stocks To Buy Heading Into 2023. 

5. Naked Wines plc (OTC:NWINF)

Number of Hedge Fund Holders: N/A

Naked Wines plc (OTC:NWINF) was founded in 1980 and is headquartered in Norwich, the United Kingdom. The company engages in the online retail of wines and spirits in the United Kingdom, the United States, and Australia. On December 7, Naked Wines plc (OTC:NWINF) reported revenue for the first half of 2022 of £165.8 million, up 4.1% from the same period last year. The company also reported net cash of £23 million and £41 million of additional liquidity from a renegotiated credit facility. It is one of the best wine stocks to buy heading into next year. 

On October 20, Liberum analyst Wayne Brown upgraded Naked Wines plc (OTC:NWINF) to Hold from Sell, noting that the company’s strategic review is “sensible.”

4. Pernod Ricard SA (OTC:PDRDF)

Number of Hedge Fund Holders: N/A

Pernod Ricard SA (OTC:PDRDF) was founded in 1805 and is headquartered in Paris, France. The company produces and sells wines and spirits worldwide. The company also offers whiskey, vodka, gin, rum, liqueur and bitters, champagne, tequila, mezcal, and aperitif under multiple brands. On October 17, Pernod Ricard SA (OTC:PDRDF) announced that it will acquire a majority stake in Código 1530 tequila, a range of ultra-premium and prestige tequila. Código 1530 tequila, which is produced in Mexico, is available in 50 U.S. states and has a presence in over 30 markets globally.

On December 15, Credit Suisse analyst Sanjeet Aujla upgraded Pernod Ricard SA (OTC:PDRDF) to Outperform from Neutral with a EUR 230 price target. The analyst cited U.S. portfolio reshaping, potential India Scotch duty reduction, and China re-opening for the upgrade. He also trimmed his earnings forecasts across the sector primarily to factor in recent FX moves and higher net finance costs.

3. Brown-Forman Corporation (NYSE:BF-B)

Number of Hedge Fund Holders: 36

Brown-Forman Corporation (NYSE:BF-B) was founded in 1870 and is headquartered in Louisville, Kentucky. The company manufactures, distills, markets, and sells spirits, wines, whiskey spirits, ready-to-drink and ready-to-pour products, vodkas, tequilas, champagnes, brandy, bourbons, and liqueurs. Brown-Forman Corporation (NYSE:BF-B) is one of the premier wine stocks to consider. On December 7, Brown-Forman Corporation (NYSE:BF-B) posted a Q3 revenue of $1.09 billion, up 9.7% year-over-year, beating market estimates by $10 million. The company anticipates stronger growth in fiscal 2023 despite global macroeconomic and geopolitical uncertainties.

On November 17, the company declared a $0.2055 per share quarterly dividend, a 9% increase from its prior dividend of $0.1885. The dividend is payable on January 3, 2023 to shareholders of record on December 2. 

According to Insider Monkey’s third quarter database, 36 hedge funds were bullish on Brown-Forman Corporation (NYSE:BF-B), up from 28 funds in the last quarter. Terry Smith’s Fundsmith LLP is the largest stakeholder of the company, with 12.2 million shares worth $814 million. 

2. LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTC:LVMUY)

Number of Hedge Fund Holders: N/A

LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTC:LVMUY) is a French luxury goods company that offers champagnes, wines, and spirits under the Clos des Lambrays, Château d’Yquem, Dom Pérignon, Ruinart, Moët & Chandon, Hennessy, Veuve Clicquot, Château Cheval Blanc, Mercier, Chandon, Woodinville, Ao Yun, Clos19, and Volcan de mi Tierra brands, among others. On October 11, LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTC:LVMUY) posted a Q3 revenue of €19.76 billion, up 27.4% year-over-year. Organic revenue growth was 19%, in line with the trends observed in the first half of the year.

Societe Generale analyst Thierry Cota on December 14 raised the firm’s price target on LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTC:LVMUY) to EUR 900 from EUR 862 and maintained a Buy rating on the shares.

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

Number of Hedge Fund Holders: 43

Constellation Brands, Inc. (NYSE:STZ) is a New York-based company that produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company offers wine under the 7 Moons, Cook’s California Champagne, Cooper & Thief, Crafters Union, Kim Crawford, Mount Veeder, Ruffino, SIMI, The Dreaming Tree, Charles Smith, The Prisoner Wine Company, Robert Mondavi, My Favorite Neighbor, and Schrader brands. For FY2023, the company updated comparable basis EPS guidance to $11.20 to $11.60 from the prior EPS guidance of $11.20 to $11.50, while the consensus came in at $11.05. Constellation Brands, Inc. (NYSE:STZ) also expects operating cash flow to be $2.6 billion to $2.8 billion and free cash flow to be between $1.3 billion to $1.4 billion.

On December 6, Deutsche Bank analyst Steve Powers raised the price target on Constellation Brands, Inc. (NYSE:STZ) to $249 from $244 and reiterated a Hold rating on the shares. 

According to Insider Monkey’s Q3 data, Constellation Brands, Inc. (NYSE:STZ) was part of 43 hedge fund portfolios, compared to 44 in the prior quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital held the largest position in the company, with 1.36 million shares worth $313.5 million.

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