In this article, we discuss the 10 best beef stocks to buy now. If you want to skip our detailed analysis of these stocks, go directly to 5 Best Beef Stocks to Buy Now.
The beef industry plays a significant role in the United States, both economically and culturally. It is a vital component of the agricultural sector and has a substantial impact on the nation’s overall economy. The beef industry encompasses various activities, including cattle farming, meat processing, distribution, and retail. The United States is known for its high-quality beef production, and the industry has evolved over the years to meet domestic and international demand. The United States is one of the world’s largest producers of beef, with a well-established cattle industry. Cattle production involves raising and breeding cattle primarily for beef production. Different breeds of cattle are raised in various regions, with notable ones including Angus, Hereford, and Holstein.
Beef is a staple in the American diet, and domestic consumption remains high. Additionally, the United States exports a significant amount of beef to countries around the world. Export markets are crucial for the industry’s growth, and the United States is one of the largest beef exporters globally. The beef industry contributes significantly to the US economy, providing employment opportunities and generating revenue. It supports various sectors, including agriculture, transportation, retail, and food service. The industry’s economic impact extends beyond cattle farming to industries such as feed production, veterinary services, equipment manufacturing, and more.
The beef industry creates employment opportunities, particularly in rural areas where cattle farming and meat processing facilities are located. It supports a range of jobs, from farmers and ranchers to meatpackers, butchers, truck drivers, and retail staff. Beef is a vital source of protein and nutrients in the American diet, contributing to food security and nutrition. The industry plays a crucial role in meeting the protein needs of the population and providing a diverse range of beef products. The export of beef products contributes to the country’s trade balance and promotes economic growth. By tapping into international markets, the US beef industry strengthens its competitiveness and expands its customer base.
Investors eager to own a piece of the food industry should consider stocks like Starbucks Corporation (NASDAQ:SBUX), McDonald’s Corporation (NYSE:MCD), and Yum! Brands, Inc. (NYSE:YUM), in addition to some of the best beef stocks discussed below. The global market for beef, which was valued at USD 49,700 million in 2022, is expected to reach USD 63,290 million by 2028, growing at a compound annual growth rate (CAGR) of 4.1% during the forecast period of 2022-2028. This growth is influenced by factors such as the impact of the COVID-19 pandemic and the Russia-Ukraine war. In 2022, the estimated total beef production in the United States reached 28.29 billion pounds, showing a slight increase from the previous year’s production of 27.95 billion pounds.
Over the past two decades, although there have been minor fluctuations, the overall US beef production has remained stable. When it comes to retail sales, beef holds the top position among fresh meats in the United States. The value of fresh beef sold in the country exceeded 30 billion US dollars in 2021. The retail price for 100% ground beef in 2022 was 4.8 US dollars per pound, an increase from 3.95 US dollars in 2020. On the other hand, beef brisket was priced at an average of approximately 8.84 US dollars per pound in major grocery retailers.
Key manufacturers of beef globally, marketed by many best beef companies, include Conagra Brands, Verde Farm, Hormel Foods, JBS, Sysco Corporation, OBE Organic, Strauss Brands, Arizona Grass Raised Beef Company, and Top Grass Cattle Co., among others. In 2021, these top five players collectively held approximately percent of the market share in terms of revenue. As of 2023, there are a total of 738,246 beef cattle production businesses in the United States. This reflects a decrease of 1.1% compared to the previous year, 2022. The beef cattle production industry in the US is considered capital intensive, meaning that these businesses rely more on capital investments such as plant, machinery, and equipment rather than labor.
The highest costs incurred by businesses in this industry as a percentage of their revenue include wages, accounting for 3.5%, purchases accounting for 29%, and rent and utilities accounting for 5%. Over the five-year period between 2018 and 2023, the number of businesses in the beef cattle production industry in the US has experienced an average annual decline of 1.1%. The beef industry is an integral part of the US economy, providing employment, contributing to economic growth, ensuring food security, and holding cultural significance. Its diverse activities, from cattle farming to meat processing and distribution, make it a critical sector within the larger agricultural landscape of the United States.
Our Methodology
For this article, we selected stocks that operate in the beef industry and ranked them based on overall hedge fund sentiment. We have assessed the hedge fund sentiment from Insider Monkey’s database of 943 elite hedge funds tracked as of the end of the first quarter of 2023. The list is arranged in ascending order of the number of hedge fund holders in each firm.
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Best Beef Stocks to Buy Now
10. BRF S.A. (NYSE:BRFS)
Number of Hedge Fund Holders: 7
BRF S.A. (NYSE:BRFS) focuses on raising, producing, and slaughtering poultry and pork for processing, production, and sale of fresh meat, processed products, pasta, margarine, and other products. It is one of the best beef stocks to buy now. On May 18, the company announced that it had received approval to export additional products to China. The company said that the production facility in Lucas do Rio Verde, located in the state of Mato Grosso, has been authorized by the General Administration of Customs China (GACC) to export meat to China. This approval follows another development in which BRF obtained authorization to export beef from its production unit in Marau, Rio Grande do Sul, as well as from Companhia Minuano de Alimentos, an exclusive supplier to BRF. BRF states that this latest authorization expands their production and commercialization capacity for important proteins, while also providing flexibility and agility to seize favorable market opportunities. BRF is recognized as the world’s third largest meat producer, having slaughtered 1.72 million animals in the past year.
On June 1, Bank of America analyst Isabella Simonato upgraded BRF S.A. (NYSE:BRFS) stock to Neutral from Underperform with a price target of R$8.50, up from R$6.50, noting that the board of directors of the firm had authorized a primary offering of 500 million shares by year end.
At the end of the first quarter of 2023, 7 hedge funds in the database of Insider Monkey held stakes worth $25 million in BRF S.A. (NYSE:BRFS), compared to 6 the preceding quarter worth $27 million.
Just like Starbucks Corporation (NASDAQ:SBUX), McDonald’s Corporation (NYSE:MCD), and Yum! Brands, Inc. (NYSE:YUM), BRF S.A. (NYSE:BRFS) is one of the best food stocks to buy now.
9. Beyond Meat, Inc. (NASDAQ:BYND)
Number of Hedge Fund Holders: 15
Beyond Meat, Inc, (NASDAQ:BYND) manufactures, markets, and sells plant-based meat products in the United States and internationally. The company markets plant-based beef products that are growing in popularity across the world. It is one of the best beef stocks to buy now. On May 19, the company announced that it was introducing a new burger called the Beyond Smashable Burger, designed specifically for US foodservice outlets. This product launch comes as Beyond Meat aims to achieve profitability by implementing a new strategy focused on sustainable growth, shifting away from previous aggressive expansion efforts.
On May 11, investment advisory BMO Capital maintained a Market Perform rating on Beyond Meat, Inc. (NASDAQ:BYND) stock and lowered the price target to $14 from $16, noting that the revenue improvement was heavily tied to distribution of new products, increasing marketing, and reducing prices.
At the end of the first quarter of 2023, 15 hedge funds in the database of Insider Monkey held stakes worth $22 million in Beyond Meat, Inc, (NASDAQ:BYND), compared to 13 in the preceding quarter worth $7 million.
In its Q1 2022 investor letter, Horos Asset Management, an asset management firm, highlighted a few stocks and Beyond Meat, Inc, (NASDAQ:BYND) was one of them. Here is what the fund said:
“What about the other asset class that has attracted the most attention from the investment community in recent times? Beyond Meat, Inc, (NASDAQ:BYND) is the other company whose valuations we did not understand and whose share price has also declined drastically in the last year and a half.”
8. Performance Food Group Company (NYSE:PFGC)
Number of Hedge Fund Holders: 29
Performance Food Group Company (NYSE:PFGC) markets and distributes food and food-related products in the United States. It is one of the best beef stocks to buy now. On May 2, the firm revealed that it was partnering with Carrier Global Corporation, a multinational company that specializes in providing heating, ventilation, air conditioning, refrigeration, fire, security, and building automation technologies, to launch a program that evaluates the use of all-electric refrigeration technology on a battery-electric truck. The aim is to enable sustainable and emissions-free distribution of refrigerated and frozen food. The electric truck will be utilized by PFG in California, supporting the company’s sustainability efforts and ensuring compliance with new regulations that require the adoption of zero-direct emission truck refrigeration technologies.
On April 12, investment advisory Truist maintained a Buy rating on Performance Food Group Company (NYSE:PFGC) stock and raised the price target to $80 from $75, noting the company continues to aggressively take market share of independents and rapidly grow its Vistar and non-nicotine Convenience business.
At the end of the first quarter of 2023, 29 hedge funds in the database of Insider Monkey held stakes worth $736 million in Performance Food Group Company (NYSE:PFGC), the same as in the previous quarter worth $524 million.
In its Q4 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Performance Food Group Company (NYSE:PFGC) was one of them. Here is what the fund said:
“The portfolio benefited from stock selection within consumer staples due to increased demand from shifts in consumer purchasing resulting from inflationary pressures and growing recession fears. Performance Food Group Company (NYSE:PFGC), a food supplier to restaurants and convenience stores, continues to benefit from a recovery of consumer demand for dining following the COVID-19 pandemic. Additionally, the new synergies from its acquisition of Core-Mark in 2021 have strengthened and continue to grow the company’s market share within the convenience store channel.”
7. Hormel Foods Corporation (NYSE:HRL)
Number of Hedge Fund Holders: 30
Hormel Foods Corporation (NYSE:HRL) develops, processes, and distributes various meat, nuts, and food products to retail, foodservice, deli, and commercial customers internationally. It is one of the best beef stocks to buy now. One of the premier beef brands of Hormel Foods is the Dinty Moore Beef Stew. Some of the other products it sells include fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacons, as well as shelf-stable products comprising canned luncheon meats, nut butters, snack nuts, chilies, shelf-stable microwaveable meals, hashes, stews, tortillas, salsas, and tortilla chips.
On June 1, Barclays analyst Benjamin Theurer maintained an Equal Weight rating on Hormel Foods Corporation (NYSE:HRL) stock and lowered the price target to $42 from $45, noting there were more extreme weather risks within the fertilizers and crop protection group.
Among the hedge funds being tracked by Insider Monkey, Washington-based firm Bill & Melinda Gates Foundation Trust is a leading shareholder in Hormel Foods Corporation (NYSE:HRL) with 2.1 million shares worth more than $87 million.
6. Sysco Corporation (NYSE:SYY)
Number of Hedge Fund Holders: 34
Sysco Corporation (NYSE:SYY) distributes food and related products. It is one of the best beef stocks to buy now. On May 17, the firm revealed plans for the Riverside Electric Vehicle Hub in California, which aims to transform its distribution center into the central point for its electrified fleet. This initiative is part of Sysco’s broader goal to reduce direct emissions by 27.5% and add 2,800 electric trucks to its US fleet by 2030. The Riverside site will feature extensive EV infrastructure, including 40 dual-port DC fast-charging stations to support 40 electric Class- vehicles and 40 electric refrigerated trailers for transporting beef across different areas. Additionally, the facility will incorporate 4 MWh of battery storage and increase solar power generation by 1.5 MW. To enable the electrification of refrigerated trailers for beef, the necessary technology is being employed.
On May 3, investment advisory Barclays maintained an Outperform rating on Sysco Corporation (NYSE:SYY) stock and lowered the price target to $88 from $94, noting the firm posted mixed third quarter results.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm D E Shaw is a leading shareholder in Sysco Corporation (NYSE:SYY) with 1.6 million shares worth more than $130 million.
In addition to Starbucks Corporation (NASDAQ:SBUX), McDonald’s Corporation (NYSE:MCD), and Yum! Brands, Inc. (NYSE:YUM), Sysco Corporation (NYSE:SYY) is one of the best food stocks to buy now.
In its Q4 2022 investor letter, Aristotle Capital Management, LLC, an asset management firm, highlighted a few stocks and Sysco Corporation (NYSE:SYY) was one of them. Here is what the fund said:
“Founded in 1969 and headquartered in Texas, Sysco Corporation (NYSE:SYY) is one of the largest food distribution companies in the world. The company generates more than $68 billion in annual sales and serves approximately 700,000 customers around the world (~90% of sales are generated in North America).
Sysco provides its customers a single partner from which to conveniently source all the ingredients kitchens need to build complete menus. This includes fresh and frozen meats, seafoods, fruits, vegetables, dairy, bakery items and even disposable dishware products. In addition, the company’s more than 6,000 sales consultants work closely with individual chefs, providing product advice and helping construct menus. Sysco’s clients are predominately restaurants (63% of revenue), but also include health care facilities (8%), education and government entities (8%), and travel and leisure establishments (7%), as well as other locations (14%) …” (Click here to view the full text)
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Disclose. None. 10 Best Beef Stocks to Buy Now is originally published on Insider Monkey.
