7 Best Wine Stocks To Buy Now

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

Number of Hedge Fund Holders: 46

Constellation Brands, Inc. (NYSE:STZ) continues to be the Best Wine Stock According to Hedge Funds, with 46 hedge fund holders in Q2 2024 boasting an overall stake value of over $1.2 billion. The New York-based company is involved in the production, import, marketing, and sale of beer, wine, and spirits across the United States, Canada, Mexico, New Zealand, and Italy. STZ is a leading premium winemaker with a widely admired portfolio that includes Woodbridge by Robert Mondavi, Clos du Bois, Blackstone, Estancia, Ravenswood, and more.

Constellation Brands made headlines last summer when its Mexican beer brand, Modelo Especial, became the Top-Selling Beer in America after dethroning Bud Light. Even after a year, there are no major signs of a slowdown and in Q1 2025, STZ’s beer business (responsible for raking in the lion’s share of its revenue) attained the second-largest share gain in the total beverage industry, as well as, once again, the top share gain in all beverage alcohol. The company also returned $185 million to shareholders in dividends and executed $200 million in share repurchases during the quarter, in addition to completing over $40 million more of buybacks in June.

Despite the huge continued success of its beer segment, Constellation Brands, Inc. (NYSE:STZ) remains focused on diversification and announced the purchase of California winery, Sea Smoke, in May to ‘further enhance the company’s higher-end wine focus and portfolio growth strategy with one of the preeminent Pinot Noir producers in the world’. Another factor helping STZ is that 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 and Corona are expected to stay in high demand.

While we acknowledge the potential of STZ to grow, our conviction lies in the belief that some AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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