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NYSE:STZ
One of the world’s largest beverage makers. Is a high risk stock. Probably has about as good a chart you can have. Just seems to be in a sidewise consolidation pattern right now. With respect to their Canopy investment, the marijuana space has dropped significantly and this will impact the share price of Constellation.
It is interesting that they are investing into Canopy. He thinks it is more like a hedge for them. In the context it is a cheap hedge. This shouldn’t be the basis to invest in the stock. The marijuana space is nascent. He wouldn’t analyze the company with that component. He wouldn’t invest in this stock.
He owned this before they bought in Canopy. They own Corona and other Mexican brands, plus wine. The beers have been growing very well. STZ has one of the best growth rates in a sluggish sector. He isn't a cannabis bull, but he sees upside in this space. (1.4% dividend, Analysts' price target: $242.00)
(A Top Pick Feb 24/16. Up 25%.) Switched out of this given that it was a consumer staples name, and into more of the cyclical areas. He still likes the name. Trading at 21X forward earnings with a 17% long-term growth rate. Sales going forward could be challenged by Pres. Trump’s potential policy to raise tariffs on Mexican imports.