5 Undervalued Defensive Stocks for 2026

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

Constellation Brands, Inc. (NYSE:STZ) is one of the best undervalued defensive stocks for 2026. Constellation Brands, Inc. (NYSE:STZ) received a rating update from Citi on March 18. The firm updated the stock to Buy from Neutral, while raising the price target to $175 from $155. Citi told investors in a research note that beer scanner data has experienced an improvement ahead of the summer season. It added that Constellation Brands, Inc.’s (NYSE:STZ) comparisons remain easy through 2026, with the company cycling through the beer category weakness of last year. The firm also attributed the rating and price target upgrade to the stock’s historically low valuation levels, as well as the company’s improved sales trends.

In a separate development, Constellation Brands, Inc. (NYSE:STZ) announced its CEO succession plan on February 12, stating that its Board of Directors has appointed Nicholas Fink as the company’s next President and Chief Executive Officer, effective April 13, 2026. Fink, who has been a member of the company’s Board of Directors since 2021, is set to succeed current President and CEO Bill Newlands and will continue to serve on the company’s Board.

Constellation Brands, Inc. (NYSE:STZ) produces, markets, and distributes wine, beer, and spirits. It operates through the Beer, Wine, Spirits, Corporate Operations and Other, and Canopy segments.

While we acknowledge the potential of STZ to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than STZ and that has 100x upside potential, check out our report about the cheapest AI stock.

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