Is Constellation Brands (STZ) a Good Investment Choice?

Matrix Asset Advisors, an asset management company, released its Q3 2025 investor letter. A copy of the letter can be downloaded here. The stock market continued its recovery from the April lows, gaining +8.12% in the third quarter and +14.83% YTD. The Matrix Large Cap Value strategy delivered a strong performance in the third quarter, which modestly outperformed the S&P 500® gain and was significantly ahead of the Russell 1000 Value® Index. Following a strong first half of the year, the Matrix Dividend Income (MDI) portfolio delivered another strong quarter. While this quarter’s performance lagged behind the Russell 1000 Value® Index and the S&P 500 over the past three months, the results for the nine months ending September 30 were robust, showing gains in the low teens. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Matrix Asset Advisors highlighted stocks such as Constellation Brands, Inc. (NYSE:STZ)r. Constellation Brands, Inc. (NYSE:STZ) is a company that produces and distributes beer, wine, and spirits. The one-month return of Constellation Brands, Inc. (NYSE:STZ) was -6.57%, and its shares lost 45.57% of their value over the last 52 weeks. On November 20, 2025, Constellation Brands, Inc. (NYSE:STZ) stock closed at $130.45 per share, with a market capitalization of $22.707 billion.

Matrix Asset Advisors stated the following regarding Constellation Brands, Inc. (NYSE:STZ) in its third quarter 2025 investor letter:

“Constellation Brands, Inc. (NYSE:STZ) is the leading provider of imported beer in the U.S., offering premium brands such as Modelo, Corona, and Pacifico that have a large and loyal customer base. The stock has been a poor performer in 2025. The company’s results have been negatively impacted by lower alcohol sales overall and a decline in sales to its core Hispanic customers. We think the price decline has created an opportunity to buy a well-run, high-quality business with a depressed stock valuation. STZ is now selling for less than 13x reduced earnings guidance, with a 3.0% dividend yield.”

In another article, we covered Constellation Brands, Inc. (NYSE:STZ) and shared the list of worst performing stocks to invest in on the dip. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.