Jim Cramer says Constellation can create more value if it invests in its premium brands

Published Tue, Nov 28 20232:43 PM ESTUpdated Tue, Nov 28 20234:10 PM EST

Every weekday the CNBC Investing Club with Jim Cramer releases the Homestretch audio feature in time for the last hour of trading on Wall Street. Here's today's edition. Markets were mixed in late trading Tuesday as bonds moved up in price and down in yield. Some of the move was in reaction to Fed speak. Federal Reserve Gov. Christopher Waller said he's "increasingly confident" that the current policy is positioned to get inflation back to 2%." But stocks turned lower around 1 p.m. ET after tepid demand for an auction of 7-Year Treasuries. The performance in shares of Constellation Brands (STZ) has been disappointing as of late even though there have been several catalysts that could have moved the stock higher. The company is coming off a well-received Investor Day, but some investors believe the new GLP-1 weight-loss medications could impact alcohol consumption. Still, we're not concerned about the drugs' impact on STZ because it should have little influence on beer, and the company has a premium high-demand beer business. Jim Cramer said he would like to see the company "spend money on Victoria, which is the premium beer of Mexico" and "spend money on your tequila brands, which are the highest rated brands in the world…no on seems to spend a dime on them," he explained. Looking ahead to Wednesday, we'll get earnings from Foot Locker (FL) in the morning and Salesforce (CRM) in the evening. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.