Top 15 Consumer Staples Stocks According to Hedge Funds

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

Number of Hedge Fund Holders: 44

Constellation Brands, Inc. (NYSE:STZ) ranks among the top consumer staples stocks according to hedge funds. Jefferies boosted its price target for Constellation Brands, Inc. (NYSE:STZ) to $205 on July 7, upgrading the company from Hold to Buy. As pressure on the company’s primary Hispanic consumer base in the United States appears to be stabilizing, analysts believe the company’s valuation appears too low.

Even in the absence of an immediate improvement in consumer sentiment, Jefferies anticipates that revenue and profit growth will pick up speed in the second half of the fiscal year as year-ago comparisons become less significant and margins improve. The firm stated that, if the financial strains on lower-income drinkers ease, a more widespread recovery should ensue.

Additionally, the firm highlighted Constellation’s robust free cash flow and increasing profitability in its wine and spirits unit, which it claimed supports ongoing share buybacks.

Constellation Brands, Inc. (NYSE:STZ) is a leading manufacturer and marketer of beer, wine, and spirits, best known for its portfolio of premium imported beer brands including Corona Extra, Modelo Especial, and the Modelo Cheladas line.