This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

7 Alcohol Stocks That Analysts Toast

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Constellation Brands (STZ - Get Report) is the largest winemaker in the world and the biggest marketer of imported beer in the U.S.

Constellation's core market is wine, which accounted for 87% of its fiscal 2010 revenue. The firm's wine portfolio includes the Robert Mondavi and Arbor Mist brands. Constellation's beer segment has the rights to distribute Corona in the U.S. Constellation also produces spirits, although it sold its value-priced spirits brands in March 2009.

Morningstar analyst Philip Gorham said in a Jan. 11 research note that Constellation's "scale and positioning at the premium end of its core markets should allow the firm to generate long-term margins above those of competitors."

But on the downside, he said "we think weak consumer brand loyalty, particularly in wine, and low-double-digit returns on invested capital mean Constellation Brands has no economic moat."

Analysts give it four "buy" ratings, one "outperform," six "holds" and two "underperforms," according to Morningstar.

Standard & Poor's gives it a "buy" recommendation and four out of a possible five-star rating, noting the company "operates in an industry that we believe has demonstrated stable revenue streams."

Shares are down 13% this year but up 23% over the past year. Its three-year average annual return is a meager 1.3%. It has a $4.2 billion market value and 86% institutional ownership.
5 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BUD $125.84 0.00%
DEO $109.23 0.00%
GS $166.18 0.00%
SAM $158.35 0.00%
TAP $96.77 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs