Goldman makes this beer importer one of its favorite stocks

Key Points
  • Goldman Sachs believes Constellation Brands can add up to 25 percent incremental beer sales volume by expanding its store distribution.
  • The firm reiterates its fiscal 2018 Constellation Brands earnings per share estimate of $8.28 versus the Wall Street consensus of $7.94.
A worker from Constellations Brands Inc.'s Grupo Modelo subsidiary makes a delivery in the Zona Rosa neighborhood of Mexico City.
Susana Gonzalez | Bloomberg | Getty Images

Investors should buy Constellation Brands shares because the company's earnings next year will come in above current expectations, according to Goldman Sachs, which reiterated its buy rating and added the firm to its Americas conviction list.

"Concerns around the recent slowdown in beer sales seems overdone, in our view. We see a sizable runway for high-single-digit beer sales growth to be sustained," analyst Judy Hong wrote in a note to clients Monday. "Within our coverage, we now see STZ as possessing the best combination of growth and valuation."

Constellation Brands is a leading beer, wine and spirits company. The firm has the exclusive right to import popular beer brands such as Corona Extra, Modelo Especial and Pacifico into the U.S.