Billionaire Daniel Sundheim’s Top 15 Stock Picks Heading Into 2025

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

D1 Capital Partners’ Equity Stake: $137.36 Million

Number of Hedge Fund Holders as of Q3 2024: 36

Constellation Brands, Inc. (NYSE:STZ) produces, imports, markets, and sells beer, wine, and spirits. It provides beer primarily under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, and Corona Non-Alcoholic brands. The stock is flat for the year amid a string of mixed financial results.

In its fiscal second quarter of 2025, earnings per share came in at $4.32, above analysts’ estimates. Revenues increased 2.9% to $2.92 billion. A 12% decline in spirit sales to $388.7 million, dragged by a 9.8% decline in shipment volume, is a point of concern. Nevertheless, Constellation Brands, Inc.’s (NYSE:STZ) beer brands, accounting for over 80% of total revenue, have maintained double-digit percentage sales growth for years. Growth is anticipated to continue at a single-digit percentage rate as brands such as Modelo and Corona gain market share.

According to Constellation Brands, Inc.’s (NYSE:STZ) second-quarter results, its beer business saw a 13% increase in operating income and a nearly 6% increase in net sales. The company’s operational efficiency and pricing power in the beer market are evident in the third consecutive quarter of margin improvement. Constellation Brands, Inc. (NYSE:STZ) has made essential changes to its business plan, such as selling its Svedka vodka brand to the international spirits giant Sazerac. The sale is part of a larger plan to concentrate on the high-end market for wines and spirits.