Should you forget the zodiac brand? Why these unstoppable stocks are better to buy.

Zodiac Brand (NYSE: STZ)This makes and sells more than 100 brands of beer, spirits and wines often considered reliable consumer staples. It is one of the world's highest alcoholic beverage producers, and it has increased its dividend every year for 10 consecutive years.

But over the past 12 months, zodiac stocks have fallen by nearly 30% due to three existing challenges:

  1. Young consumers drink less.

  2. Demand for its cheap wine brands is weakening.

  3. President Donald Trump's tariffs on Mexico will make it expensive to produce and import its leading Modelo, Corona and Pacifico beers.

Image source: Getty Images.

In its fiscal year 2026, which will end in February 2026, Constellation expects its organic sales to be near flat, with earnings per share expected to fall by 8% to 11%. Management is trying to stabilize the overall business by divesting its cheap wine brands, expanding its premium wine brands and selling more non-alcoholic beverages — but these efforts may not completely offset the pressure created by the Trump trade war.

Constellation's stock looks cheap, or 14 times forward earnings, but with a forward yield of 2.2%, which may not be enough to attract serious income investors. Therefore, these investors may want to look at two better consumer staples, rather than zodiac signs: Coca Cola (NYSE:KO) and Philip Morris International (NYSE: PM).

Both soda consumption and smoking rates are falling worldwide, so it doesn’t seem wise to invest in Coca-Cola or Philip Morris International (PMI) instead of the sign. However, Coca-Cola and PMI actually solved their presence challenges earlier than the sign.

Over the past few decades, Coca-Cola has developed and purchased more brands of bottled water, tea, juice, sports drinks, energy drinks, dairy products, coffee, and even alcoholic beverages to curb its reliance on its carbonated beverage sales. It also refreshes its flagship soda by offering it in different ways, with its smaller size, new flavors and sugar-free versions.

PMI from Otria In 2008. Altria then retained the U.S. market, while PMI sold tobacco products anywhere else. PMI initially focused on expanding sales in countries with lighter regulations, but over the past decade, its IQOS products have been associated with cigarettes containing IQOS products that heat tobacco instead of burning. It also launched more smoke-free products such as SNUS, EI-Carettes and Zyn Nicotine Pouches.

As a result, PMI generated 42% of revenue from smokeless products in the first quarter of 2025 and 44% of its gross profit. Like all other tobacco companies, PMI has been steadily raising its cigarette prices to offset the financial impact of falling sales.

Constellation generates most of its revenue in the U.S. market, but its best-selling beer brand is still produced in Mexico. So, the 25% tariff on the Mexico import tax that Trump came into effect in March will push the prices American consumers must pay for these beer brands. There is no doubt that this will be revenue in the short term of the throttle sign.

Coca-Cola is better off the tariffs because it sells concentrates and syrups only in its beverages. The production, distribution and sales of finished beverages are handled by independent regional bottlers. These bottlers need to deal with higher tariffs on aluminum, but they plan to rotate to more plastic bottles to mitigate the impact. The diversification of its supply chain in more than 200 independent bottles worldwide provides Coca-Cola with more ways to offset the impact of tariffs on its bottom line than the impact of the constellation.

PMI is also protected from these tariffs as it produces and sells almost all of its products. It has only launched some smoke-free products in the United States and has been expanding its domestic manufacturing facilities (especially Zyn) to avoid being hit by new tariffs.

Coca-Cola shares have risen 15% over the past 12 months, while PMI shares have risen nearly 80%. However, both stocks still have reasonable value. Coca-Cola trades at 24x forward returns and pays a 2.9% forward return, while PMI trades at 23x forward returns at 3.1%. Both stocks seem to be priced higher than the zodiac sign, but obviously their safer investments can pay higher dividends.

Despite the difficult macroeconomic situation, the two companies are also expecting continued growth. In 2025, Coca-Cola expects its organic sales to rise by 5% to 6% as comparable earnings per share grows by 2% to 3%. PMI expects its organic sales to rise by 6% to 8% as adjusted earnings per share grows by 12% to 14%.

Neither Coca-Cola nor PMI are an exciting investment, but they are a safe place to park cash in this unpredictable market. They are also better with tariffs and other huge headwinds than other diversified companies in the zodiac sign and consumer staples.

Before purchasing a zodiac brand, consider the following:

this Motley Fool Stock Advisor The analyst team just confirmed what they think is 10 Best Stocks For investors, you can buy it now…the zodiac brand is not one of them. Ten stocks with layoffs could generate monster returns in the coming years.

When to consider Netflix On this list on December 17, 2004...If you invested $1,000 when you suggested, You will have $623,103! * Or when Nvidia This list was listed on April 15, 2005...If you invested $1,000 when you suggested, You will have $717,471! *

Now, it's worth noting Stock ConsultantThe overall average return is 909% - Compared to market impulses 162% For the S&P 500 index. Don't miss the latest top ten list, available when you join Stock Consultant.

View 10 stocks »

*As of May 5, 2025, stock consultant returns

Leo Sun has a position in the Altria Group. Motley Fool recommends Constellation Brands and Philip Morris International. Motley Fool has a disclosure policy.

Should you forget the zodiac brand? Why these unstoppable stocks are better to buy. Originally published by Motley Fool