We recently published a list of 10 Best Stocks to Buy and Hold For 2025. In this article, we are going to take a look at where Constellation Brands, Inc. (NYSE:STZ) stands against other best stocks to buy and hold for 2025.

Stocks have been performing well lately as they seem to have been influenced by the excitement around artificial intelligence (AI) as well as the new administration. CNBC reported that stocks rose on January 22, with the S&P 500 hitting a new all-time high, as technology stocks rallied on AI optimism and President Trump’s new term in office.

On Wednesday, January 22, stocks finished higher as all 3 of the major indexes ended the session in the green. The S&P 500 increased by 0.61% after reaching an intraday record of 6,100.81 before closing at 6,086.37. The Nasdaq Composite excelled and rose 1.28% to reach 20,009.34, underscoring the outperformance of tech stocks. The Dow Jones Industrial Average advanced by 130.92 points, or 0.3%, to close at 44,156.73.

READ ALSO: 10 Best Low Priced Technology Stocks To Buy Now and 10 Best Sin Stocks to Invest in 2025.

President Trump also recently announced a joint venture named “Stargate,” involving OpenAI, Oracle, and Softbank, to invest at least $500 billion in AI infrastructure within the US. Stocks rose because of solid earnings reports and investors continued to pile into the AI space following this recent announcement by the new administration.

Keith Lerner, Truist’s co-chief investment officer, pointed out that a combination of a resilient economy, easing inflation, stabilizing of interest rates, and a strong start to the earnings season has created a favorable environment for the market. He noted that AI and technology continue to be key drivers of this bull market.

Another key factor playing a role in this market rally is the optimism around Trump’s agenda. Investors are hoping that Trump will ease regulations and reduce corporate taxes, which could lead to an increase in profits.

Methodology

To compile our list of the 10 best stocks to buy and hold for 2025, we used the Finviz stock screener to look for stocks that analysts believe will gain more than 30% in the next 12 months. We sorted our results based on market capitalization and picked the top 25 stocks. Finally, we ranked the 10 best stocks to buy and hold for 2025 based on their average price target upside potential according to analysts as of January 22, 2025. Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds.

Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

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

Constellation Brands, Inc. (NYSE:STZ)

Average Price Target Upside Potential According to Analysts: 66.52%

Number of Hedge Fund Holders: 36

Constellation Brands, Inc. (NYSE:STZ) is a leading international producer and marketer of beer, wine, and spirits. The company has operations in the US, New Zealand, and Italy. As a major wine producer globally and one of the biggest beer companies in the United States, Constellation Brands, Inc. (NYSE:STZ) markets its products under various brands. Some of the company’s most well-known wine and beer brands include Kim Crawford, Meiomi, Robert Mondavi, Corona, Modelo Especial, Victoria, and Pacífico. STZ ranks among the best stocks to buy and hold for 2025.

The company is increasing its investments in marketing and brand development for its core brands to enhance visibility and consumer loyalty. Constellation Brands, Inc. (NYSE:STZ) reported that in Q3 of fiscal 2025, which ended on November 30, 2024, its beer business achieved its 59th consecutive quarter of growth in depletion volumes. This strong consumer demand for the company’s beer products was supported through strategic marketing efforts.

Moreover, the company is investing in growing its production capacity. Constellation Brands, Inc. (NYSE:STZ) reported that it expects to invest approximately $3 billion in capital expenditures from fiscal 2025 to fiscal 2028 to continue the development of modular additions at existing facilities in Mexico and the establishment of a brewery site at Veracruz in Mexico. The initial production phase of the new facility in Veracruz is on track for completion by late fiscal 2026 or early fiscal 2027.

Overall, STZ ranks 2nd on our list of best stocks to buy and hold for 2025. While we acknowledge the potential of STZ, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than STZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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