Beer and wine stocks started the year well, but made an about-face early in the second quarter, just about the time that battered tech shares started to stir. Investors are changing their mind just at a time when a number of beer and wine companies are enjoying very good fundamentals. Just look at the two factors analysts focus on when judging the industry. Last year's hikes have stuck, despite concerns that a softening economy might prompt brewers to hack at prices. Formerly known as Canandaigua Brands, the company produces a long list of labels, ranging from Almaden and Manischewitz to Ravenswood.
Constellation is also a star in beer, as the distributor of Corona, the favorite U.S. import.
Constellation's management has earned a reputation for growing the company's bottom line with a series of savvy acquisitions over the years. Yet the company is one of the cheapest stocks in the group. Still, Anheuser-Busch has worked hard to keep profits growing, too. If you're looking to invest, don't expect to find a pure-alcohol stock fund. Portfolio managers tend to mix beer and wine stocks with positions in food or other consumer shares.