Diageo (DEO) Vs Constellation (STZ): Hedge Funds Appear To Mirror Jim Cramer’s Sentiment
Jim Cramer, the renowned financial commentator, recently expressed differing views on Diageo PLC (NYSE:DEO) and Constellation Brands, Inc. (NYSE:STZ) compared to his 2025 commentary. While he remained cautious about Diageo's growth prospects, Cramer highlighted Constellation's potential due to its new CEO, Ned Fink, who previously excelled at Jim Beam.
The hedge funds, however, seem to align with Cramer's sentiment, as they show more confidence in Constellation Brands, Inc. (NYSE:STZ) than Diageo. In Q1 2026, 56 hedge funds covered Constellation, compared to 35 for Diageo, despite a notable short interest in STZ at 6.13%, as opposed to only 0.71% for DEO. Although Diageo's stock has faced challenges, such as supply and inventory mismanagement and declining sales in Latin America and the Caribbean, along with a 52% drop over the past five years, its troubles in China and North America add further obstacles.
On the other hand, Constellation Brands, Inc. (NYSE:STZ) has demonstrated growth in beer sales and has managed to exceed analyst earnings expectations, although its beer depletion has slightly decreased, and it faces challenges in wine and spirit sales.
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