Cramer’s Morning Thoughts: 20 Stocks to Watch

17. Constellation Brands Inc. (NYSE:STZ)

Number of Hedge Fund Investors: 46

Barclays raised its price target for Constellation Brands, Inc. (NYSE:STZ), a Club name, from $295 to $309 per share. Analysts are optimistic about the Mexican beer giant’s strong topline and profit growth trends, and they see the potential for additional cash returns. Here’s what the latest Morning Thoughts post said:

“Barclays raised its Constellation Brands price target to $309 per share from $295. The analysts like the Mexican beer powerhouse’s healthy topline and profit growth trends. They also see the potential for incremental cash returns from the Club name.”

Constellation Brands, Inc. (NYSE:STZ) is an appealing investment opportunity, thanks to its strong financial results and a wide range of premium brands. In its Q2 2024 earnings report, Constellation Brands, Inc. (NYSE:STZ) announced net sales of $2.5 billion, which is an 11% increase from the previous year, along with significant growth in earnings before interest and taxes (EBIT).

This growth is largely driven by the popularity of its beer brands, especially Modelo and Corona, which have been gaining market share. Constellation Brands, Inc. (NYSE:STZ)  focuses on premium products, catering to changing consumer tastes, particularly in the craft beer and hard seltzer categories. Constellation Brands, Inc. (NYSE:STZ)  is also actively pursuing growth by introducing new flavors and expanding its distribution channels.

Recent plans include increasing production capacity to meet rising demand and committing to sustainability initiatives aimed at reducing carbon emissions and improving water efficiency. With strong brand loyalty and a strategic approach to market challenges, Constellation Brands, Inc. (NYSE:STZ)  is well-positioned for continued growth in the beverage alcohol market, making it an attractive option for investors