We recently compiled a list of the Jim Cramer Recently Talked About These 11 S&P 500 Stocks. In this article, we are going to take a look at where Constellation Brands, Inc. (NYSE:STZ) stands against the other stocks Jim Cramer recently talked about.
On Monday, Jim Cramer, host of Mad Money, took a closer look at how the S&P 500 performed in January, highlighting both the successes and the setbacks, and commented on the ongoing tariffs activity. Reflecting on the market’s early response to President Trump’s policies in 2025, Cramer noted that while January was generally a good month for stocks, some of the biggest gainers have since experienced significant pullbacks. According to Cramer, it is important to evaluate both the winners and losers as the year progresses.
Furthermore, Cramer mentioned that his family, with substantial business dealings in Mexico, took Trump’s campaign promise of imposing tariffs on the country seriously, while others did not. While the implementation of a 25% tariff has been delayed by a month, Cramer pointed out that its impact remains real. If enacted, the tariff could become a serious barrier to profitability for businesses on both sides of the border.
READ ALSO Jim Cramer Recently Looked Into These 8 Stocks and Jim Cramer’s Game Plan: 15 Stocks in Focus
What Cramer did not expect, however, was the response from Mexico’s newly elected president, Claudia Sheinbaum. Sheinbaum took a bold step by deploying 10,000 National Guard troops to address illegal immigration and combat the influx of fentanyl into the country. In exchange, she secured a temporary one-month pause on the tariff.
“I think this opens the door for a change in trade policy, the one that’s much more targeted, now, that’s much smarter than the tit-for-tat approach that China adopted, one that could possibly preserve a lot of commerce we have with Mexico, our biggest trading partner.”
Cramer believes that this approach could help preserve the vital trade relationship between the U.S. and Mexico, a relationship worth $807 billion in 2023. Cramer also cautioned that while this adjustment may help avoid an immediate economic downturn, there’s a risk of unintended consequences. If Mexico’s economy does slip into recession due to the tariffs, Cramer warned, the resulting economic strain could trigger a surge in illegal immigration.
“Bottom line, pretty disparate group of winners and losers if you ask me. Very different from 2024. So why don’t we see how things play out for the rest of the year?”
Our Methodology
For this article, we compiled a list of 11 stocks that were discussed by Jim Cramer during the episode of Mad Money on February 3. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2024, which was taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A winemaker examining a glass of red wine from a barrel in a cellar.
Constellation Brands, Inc. (NYSE:STZ)
Number of Hedge Fund Holders: 36
Cramer expressed disappointment regarding Constellation Brands, Inc. (NYSE:STZ) and noted that the company seems to be in denial about its state.
“The third worst name is a tough one for me. It is Constellation Brands, STZ, down 18.2%. As a purveyor of Mexican beer brands, Modelo and Pacifico, this stock was already under pressure after the election and then the bottom fell out after they reported a bad quarter early in the month. Now we spoke to Constellation CEO Bill Newlands that night and came away pretty disappointed with what I felt was a lack of urgency about fixing the company’s problems. It almost feels like they’re in denial. Where do I come down on this one? Well, with the arrival of tariffs this past week, the Charitable Trust sold half its position in Constellation today. Enough. Even with the pause of the Mexican tariffs announced this morning, this position has just become way too hard to own. Liquor is a tough thing to own in this market.”
Constellation Brands, Inc. (NYSE:STZ) is a well-known company in the production, importation, marketing, and sale of beer, wine, and spirits, offering a range of beer brands. Cramer has been bearish on the company for a while now. Recently, he expressed:
“The wine and spirits from Constellation Brands were so challenged, I wish they’d just sold the business a long time ago. Just a very bad miss. Beer’s holding up okay, but not enough to make Wall Street like the stock. Oh man… My Charitable Trust is stuck with it.”
Overall STZ ranks 9th on our list of the S&P 500 stocks Jim Cramer recently talked about. While we acknowledge the potential of STZ as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than STZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article was originally published at Insider Monkey.
