Jim Cramer Says Constellation Brands is “Four Times Cursed”

Constellation Brands, Inc. (NYSE:STZ) is one of the 13 stocks Jim Cramer recently shed light on. During the episode, Cramer called the company “four times cursed,” as he commented:

“Or how about Constellation Brands? The alcohol company has been four times cursed. GLP-1 drugs cut the craving for beer. Gummies give you the same high… I have no idea about that. Younger people don’t want to pollute their bodies with alcohol. I don’t know anything about that either. Its big Mexican beer brands, Corona, Modelo, and Pacifico, are victims of the White House immigration crackdown, which the CEO pointed out on their conference call in April. Unfortunate for Constellation shareholders, these immigration policies are impacting a meaningful chunk of their customer base.”

A winemaker examining a glass of red wine from a barrel in a cellar.

Constellation Brands (NYSE:STZ) produces and sells a diverse portfolio of beer, wine, and spirits under well-known brands across various markets. Oakmark Fund stated the following regarding Constellation Brands, Inc. (NYSE:STZ) in its Q1 2025 investor letter:

“Constellation Brands, Inc. (NYSE:STZ) is the leading imported beer company in the U.S. The company has a strong portfolio made up of iconic premium beer brands such as Modelo, Corona and Pacifico. We like that Constellation’s beer segment has consistently outgrown the industry and believe it can further benefit from demographic tailwinds, new distribution points, and future price increases. More recently, the stock price has come under pressure due to both stock specific and industry-wide challenges, some of which we believe will prove transitory. Despite the company’s strong historical performance and expectations for continued above-market beer growth, Constellation trades at a meaningful discount to other consumer packaged goods companies with similar growth outlooks. This dislocation afforded us the opportunity to initiate a position in the company at a significant discount to our estimate of intrinsic value.”

While we acknowledge the potential of STZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.