Constellation Brands, Inc. (STZ), BEAM Inc (BEAM): Drink Up, Investing in Wine and Spirits

Founded in 1945, Victor, New York-based Constellation Brands, Inc. (NYSE:STZ) is the largest wine producer in the world. Poised to get all the U.S. rights to Mexico’s Modelo beer brands, including Corona Extra and Corona Light, along with its acquisition of Crown Imports, Constellation Brands, Inc. (NYSE:STZ) will also be a tremendous player in the beer industry as America’s third largest brewer.

Constellation Brands, Inc. (NYSE:STZ) currently doesn’t have a large number of spirits under its umbrella, and the ones it does have, like Svedka Vodka and Black Velvet Canadian whiskey, aren’t as well known as the Beam or Brown-Forman brands.

With a market cap of over $8.5 billion, earnings per share of $2.11, and price to earnings ratio of 22.20, Constellation Brands, Inc. (NYSE:STZ) is definitely a company to watch. Unfortunately, they don’t pay dividends and their beta of 1.21 is less stable than Beam’s or Brown-Foreman’s.

Conclusion

BEAM Inc (NYSE:BEAM) and Brown-Forman pay dividends, which always makes me smile favorably on a company. However, Constellation Brands, Inc. (NYSE:STZ) has had a strong, mostly climbing stock chart for a decade, so the moral of the story (if there can be a moral in a story about alcohol) is that booze is good for the bottom line provided you’re investing in it more than you’re drinking it.

The article Drink Up: Investing in Wine and Spirits originally appeared on Fool.com and is written by Marie Flanigan.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

The 20 Biggest Contracts in MLB History

The 7 Worst Blown Calls in Sports History

7 Free Ways to Advertise Your Business Online

The 18 Best R&B Songs of the 90’s

The 10 Most Dangerous States to be a Cop

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!