12 Best Chocolate Stocks to Buy According to Hedge Funds

8. The J. M. Smucker Company (NYSE:SJM) 

Number of Hedge Fund Holders: 30

Market cap as of February 4: $11.27 billion

One of the Best Chocolate Stocks, The J. M. Smucker Company (NYSE:SJM) is a trustworthy consumer staple business that has steady growth and long-lasting competitive advantages. Since its founding in 1897, the company has expanded to become a $9 billion behemoth, with over 90% of American households buying its products. Its diversified portfolio includes well-known brands like Jif, Uncrustables, Milk-Bone, and Café Bustelo. Richard and Timothy Smucker own 3.2% of the business, showing the strong family ownership of the business and how management’s goals fit with long-term shareholder value.

The firm dominates several markets, including frozen handheld snacks, peanut butter, chocolate spreads, coffee, and more. Notably, Jif and Hostess are brands that manufacture chocolate-related products such as spreads, cakes, and cookies, to name a few.

The J. M. Smucker Company (NYSE:SJM) has agreed to pay $40 million in cash to JTM Foods for the sale of its Cloverhill and Big Texas trademarks as well as some private label goods. The agreement, which supports Smucker’s goal of expanding the Hostess brand, involves 400 workers and a manufacturing site in Chicago. It is projected that the transaction, which is scheduled to finish by April 30, 2025, will not have an impact on earnings and that the money raised will be utilized to pay down debt.

The J. M. Smucker Company (NYSE:SJM) reported the second-quarter performance of 2025, with shipments up 1% and consumption up 0.6%, revealing tightly aligned metrics with no Thanksgiving timing effect. Over the past five quarters, the company has maintained strong trends and achieved industry-leading share performance in the frozen and snacks areas. Consistent top-line growth has been fueled by investments in trade, advertising, and innovation, especially in frozen and snack products. The firm’s solid financial position is further supported by the fact that free cash flow conversion has surpassed 100% as a result of efficient working capital management, particularly in inventory.

John W. Rogers’s Ariel Investments was the largest stakeholder in the company among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 1.63 million shares worth $197.55 million as of Q3.