In this article, we will discuss the 12 Best FMCG Stocks to Buy According to Billionaires.
Historically, the consumer-packaged-goods (CPG) industry outperformed most of the other industries, mainly due to the high growth and consistent margins, says McKinsey. However, since 2012, numerous factors, such as inflation, market saturation, significant competition, fluctuating consumer tastes and behaviors, along with a fragmented consumer base resulted in growth challenges. Given increased interest rates and elevated industry multiples over the previous few years, there has been lesser deal activity, says the firm. Furthermore, a range of leading CPG companies continue to take a more measured approach, emphasizing midsize deals and aiming to achieve cost and growth synergies.
What Lies Ahead?
The broader downward trend of rates, along with strong, cash-rich balance sheets (and increased capability to take more affordable debt) of CPG companies can result in higher deal activity over the near future for the sector, says McKinsey. The firm expects a mix of 3 types of transactions, i.e., signature, sector-shaping deals, sizable horizontal deals allowing for greater subcategory consolidation, and targeted spin-offs of brands and business units possessing limited synergies or growth enablers with their current owner.
While the consumer sector remains broad, much of the analysis was focused on the F&B sector. McKinsey anticipates to see increased activity throughout CPG sectors, mainly in the personal care and beauty sectors. However, it also expects that the F&B sector might continue to capture a significant share of deals.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Different Levers for Growth
Deloitte believes that, in 2025, the consumer products companies are likely to address the product portfolio and mix in a bid to entice the consumer and invest across the broad set of demand-generation capabilities. Furthermore, the businesses are projected to develop transformative efficiency so that savings can be produced, which can help finance such investments. Deloitte points out that increasing the unit volume sold remains an important lever that can support in driving profitable growth. Notably, some consumer products companies, mainly the profitable growers, remain focused on innovation to re-engage consumers. Deloitte also highlighted that high-performing companies seem to be adopting a clear-eyed view of their portfolios, and they continue to divest and acquire as needed.
Amidst such trends, let us now have a look at the 12 Best FMCG Stocks to Buy According to Billionaires.
A supermarket shelf overflowing with a variety of fast-moving consumer goods.
Our Methodology
To list the 12 Best FMCG Stocks to Buy According to Billionaires, we used a screener and Insider Monkey’s exclusive database of billionaire stock holdings to shortlist the companies catering to the broader FMCG space. For the stocks with the same number of billionaire holdings, we have used the number of hedge fund investors as a secondary metric to rank the stocks, as of Q4 2024. We also mentioned the hedge fund sentiments around each stock, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12 Best FMCG Stocks to Buy According to Billionaires
12. Kenvue Inc. (NYSE:KVUE)
Number of Billionaire Investors: 7
Number of Hedge Fund Holders: 38
Kenvue Inc. (NYSE:KVUE) operates as a consumer health company. Anna Lizzul from Bank of America Securities reiterated a “Buy” rating on the company’s stock with the price target of $25.00. The analyst’s rating is backed by factors including strategic board appointments and potential for multiple expansions. As per the analyst, the recent addition of 3 new board members, which includes 2 independent directors and a representative from Starboard Value, can be regarded as a positive step towards improving governance. This can result in more stability in management and strategic alignment.
Furthermore, the analyst sees medium-term multiple expansions fueled by improvements in volume for the skin health & beauty and self-care segments, together with enhanced brand support as well as a stronger innovation pipeline. Kenvue Inc. (NYSE:KVUE)’s emphasis on capital allocation, such as brand investment, potential acquisitions, and shareholder returns supports a “Buy” rating. Elsewhere, Jefferies has been supporting the company’s strategic initiatives as the firm maintained a “Buy” rating with a price objective of $27.00. Kenvue Inc. (NYSE:KVUE)’s strategic efforts revolve around innovating and adapting its product offerings, which are being regarded as positive catalysts. Also, William Blair has a “Market Perform” rating for Kenvue Inc. (NYSE:KVUE)’s stock as the firm highlighted its investment in innovation and market expansion.
11. Kimberly-Clark Corporation (NYSE:KMB)
Number of Billionaire Investors: 11
Number of Hedge Fund Holders: 50
Kimberly-Clark Corporation (NYSE:KMB) is engaged in manufacturing and marketing personal care products. The company’s Q4 2024 and FY 2024 results demonstrated the strength of its innovation-led growth model, fueling volume gains, improving product mix, and garnering strong efficiencies, allowing reinvestment in the brands and new capabilities. The company’s strategic shift, such as portfolio restructuring and operational improvements, continues to place it well for consistent long-term growth. In FY 2024, Kimberly-Clark Corporation (NYSE:KMB) launched its transformative, multi-year Powering Care strategy and successfully rewired the organization into 3 powerhouse segments.
The company’s FY 2024 results surpassed the new long-term growth algorithm, thanks to consistent execution throughout the organization. Kimberly-Clark Corporation (NYSE:KMB) continues to make investments in its product quality, brand support and capability building. It remains bullish on its ability to continue powering investment and bottom-line increase with strong productivity and SG&A savings through wiring for growth. Kimberly-Clark Corporation (NYSE:KMB)’s new organizational design remains focused on fueling innovation, which can be a critical driver of future growth. The accelerated innovation is expected to lead to the introduction of margin-enhancing premium products, supporting the company to offset cost pressures and fuel revenue growth. Furthermore, an agile organizational structure can enable the company to capitalize on emerging market opportunities effectively.
10. Altria Group, Inc. (NYSE:MO)
Number of Billionaire Investors: 11
Number of Hedge Fund Holders: 47
Altria Group, Inc. (NYSE:MO) is engaged in manufacturing and selling smokeable and oral tobacco products. The company believes that its actions over time have placed it to win in the US nicotine over the long term. It continues to emphasize the smoke-free product market, focusing on the growth of vapor and modern oral nicotine products. Altria Group, Inc. (NYSE:MO) possesses a demonstrated commitment to responsibility, a strong understanding of the US nicotine consumers as well as a compelling portfolio with products in each of today’s smoke-free categories.
Altria Group, Inc. (NYSE:MO) has reaffirmed its guidance to deliver 2025 full-year adjusted diluted EPS of between $5.22 – $5.37, reflecting a growth of 2% – 5% from a base of $5.12 in 2024. This includes the planned investments in support of its Vision, such as marketplace activities to support its smoke-free products, continued smoke-free product research and development, and regulatory preparation expenses. Altria Group, Inc. (NYSE:MO) plans to grow the U.S. smoke-free volumes by a minimum of 35% from its 2022 base of 800 million units by 2028. Furthermore, it expects to approximately double the U.S. smoke-free net revenues to $5 billion from its 2022 base of $2.6 billion, with $2 billion sourced from the innovative smoke-free products.
9. Mondelez International, Inc. (NASDAQ:MDLZ)
Number of Billionaire Investors: 12
Number of Hedge Fund Holders: 55
Mondelez International, Inc. (NASDAQ:MDLZ) is engaged in manufacturing, marketing, and selling snack food and beverage products. Morgan Stanley initiated coverage on the company’s stock with an “Overweight” rating and a price objective of $69, demonstrating confidence in its strategic positioning and potential sales growth. The firm’s optimistic outlook revolves around Mondelez International, Inc. (NASDAQ:MDLZ)’s brand strength and pricing strategies, which can improve the market share. The company’s strategic emphasis on sustainable growth and value-enhancing acquisitions is a critical element of its approach.
Elsewhere, analyst Robert Moskow from TD Cowen maintained a “Buy” rating on the company’s stock with the price objective of $71.00. The analyst’s rating is backed by factors demonstrating a favourable outlook on its financial performance and market positioning. The analyst has highlighted Mondelez International, Inc. (NASDAQ:MDLZ)’s robust brand portfolio and its strategic presence in developing markets. Its strategic emphasis on the cake and pastry segment provides a strong growth opportunity.
This category expansion enables it to leverage existing distribution networks, brand recognition, and manufacturing expertise to enter a new market possessing healthy growth potential. Mondelez International, Inc. (NASDAQ:MDLZ)’s cakes and pastries business continues to grow and remains well-positioned to accelerate growth. The company’s established presence in the snack industry places it well to capitalize on the market trends.
8. Monster Beverage Corporation (NASDAQ:MNST)
Number of Billionaire Investors: 12
Number of Hedge Fund Holders: 52
Monster Beverage Corporation (NASDAQ:MNST) is engaged in the developing, marketing, selling, and distributing energy drink beverages and concentrates. Christopher Carey from Wells Fargo maintained a “Buy” rating on the company’s stock with a price objective of $60.00. The rating is backed by a combination of factors demonstrating a favourable outlook for the company. The analyst has highlighted the improving trends in the U.S. energy drink category, together with the long-term growth potential in international markets. Some of the critical highlights consist of accelerating growth in the US market as well as an increase in shelf space for energy drinks. Despite the challenges, Carey opines that Monster Beverage Corporation (NASDAQ:MNST)’s growth prospects and strategic initiatives justify the rating.
Elsewhere, Needham analyst Gerald Pascarelli reiterated the neutral stance on the company’s stock, providing a “Hold” rating. The analyst’s rating is backed by factors demonstrating a balanced outlook. As per the analyst, Monster Beverage Corporation (NASDAQ:MNST) closed the year on a strong footing and is entering 2025 with favorable momentum, thanks to the stable elasticities after a price increase. The analyst anticipates that Monster Beverage Corporation (NASDAQ:MNST)’s revenue can improve during the summer months as the effects of the price increase become pronounced.
7. Colgate-Palmolive Company (NYSE:CL)
Number of Billionaire Investors: 13
Number of Hedge Fund Holders: 62
Colgate-Palmolive Company (NYSE:CL) is engaged in manufacturing and selling consumer products. TD Cowen analyst Robert Moskow maintained the bullish stance on the company’s stock, providing a “Buy” rating. The analyst’s rating is backed by factors demonstrating its potential despite recent challenges. As per the analyst, Colgate-Palmolive Company (NYSE:CL)’s healthy market share gains reinforced the confidence in business momentum. Despite North American organic sales declining marginally, the favourable outlook on volume trends as well as potential improvements in liquid hand soap, toothpaste, and dish soap offer optimism, says Moskow.
Colgate-Palmolive Company (NYSE:CL)’s broad portfolio of well-established brands continues to command strong consumer loyalty, offering a robust foundation for growth. The company’s investment in brand equity and marketing supported it in maintaining its position as a trusted name when it comes to household and personal care products. An emphasis on innovation enables Colgate-Palmolive Company (NYSE:CL) to remain ahead of market trends and cater to evolving consumer needs.
Also, it has agreed to acquire Care TopCo Pty Ltd, owner of the Prime100 pet food brand. The acquisition gives the company’s Hill’s Pet Nutrition division an entry into the fast-growing fresh pet food category. Diamond Hill Capital, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“As valuations have continued rising and the economic cycle has gotten relatively long in the tooth, we’ve thought carefully about where and how we are exposed to more cyclical stocks. As such, we initiated just two new positions in Q4: Colgate-Palmolive Company (NYSE:CL) and the aforementioned lululemon.
Colgate-Palmolive is a high-quality business with leading positions in oral care, home products and pet nutrition. Historically, the company has allocated capital well, and it produces significant free cash flows. Shares were pressured in Q4 primarily, we believe, in sympathy with near-term macroeconomic concerns rather than any fundamental issues at the business. We consequently capitalized on the underperformance and compelling valuation to start a position.”
6. PepsiCo, Inc. (NASDAQ:PEP)
Number of Billionaire Investors: 14
Number of Hedge Fund Holders: 69
PepsiCo, Inc. (NASDAQ:PEP) is engaged in the manufacturing, marketing, distributing, and selling of various beverages and convenient foods. Morningstar believes that the company is expected to benefit from secular tailwinds in the snack business and an integrated business model enabling more effective commercialization. Furthermore, growth initiatives in certain attractive beverage subcategories (such as energy drinks), as well as numerous emerging markets (including Latin America, Africa, and Asia-Pacific), can also fuel its growth prospects. The firm opines that demand for snacks and beverages remains resilient across economic cycles, and a large end-to-end supply chain provides PepsiCo, Inc. (NASDAQ:PEP) better control over execution, supporting its operations from external shocks.
Notably, demographic and lifestyle shifts can drive global snack consumption. Despite the carbonated soft drink volume waning in the mature markets, the diversity of PepsiCo, Inc. (NASDAQ:PEP)’s beverage portfolio can provide growth opportunities across developed and emerging markets. As the company continues to make investments and develop its international presence, it can capture new markets and consumer segments, fueling broad-based revenue growth. PepsiCo, Inc. (NASDAQ:PEP) remains proactive in addressing challenges and capitalizing on opportunities. Its acquisition strategy continues to be a point of interest.
5. The Procter & Gamble Company (NYSE:PG)
Number of Billionaire Investors: 14
Number of Hedge Fund Holders: 79
The Procter & Gamble Company (NYSE:PG) is engaged in the provision of branded consumer packaged goods. Erste Group analysts upgraded the company’s stock from “Hold” to “Buy.” The upgrade stems from its strong operating margin, which surpasses that of its competitors, and expected sales growth moving forward. In Q2 2025, The Procter & Gamble Company (NYSE:PG)’s reported operating margin rose 550 bps as compared to the prior year. Elsewhere, Evercore ISI reiterated an “Outperform” rating on the company’s stock with the price objective of $180.00. The firm lauded its commitment to the strategic direction and execution amidst increased uncertainty. The company exhibited optimism regarding its innovation prospects. The focus remains on improving its scale advantages and enhancing agility and accountability.
The Procter & Gamble Company (NYSE:PG)’s focus on innovations can enable it to command premium pricing, resulting in improved profit margins. The focus can allow it to enter new market segments or strengthen its position in current ones. Through continuous innovation, The Procter & Gamble Company (NYSE:PG) plans to stay ahead of market trends, resulting in increased market share and fueling organic sales growth. This can result in sustained revenue increases and an improvement in profitability in the long term.
4. The Coca-Cola Company (NYSE:KO)
Number of Billionaire Investors: 16
Number of Hedge Fund Holders: 81
The Coca-Cola Company (NYSE:KO) is a beverage company that is engaged in manufacturing and selling numerous non-alcoholic beverages. Erste Group analysts upped the company’s stock from “Hold” to “Buy,” highlighting its strong profitability and optimistic growth projections. For Q4 2024, the company’s EPS saw an increase of 12% to $0.51, while comparable EPS (non-GAAP) rose 12% to $0.55. For FY 2025, The Coca-Cola Company (NYSE:KO) anticipates delivering organic revenue (non-GAAP) growth of 5% – 6%. Erste Group analysts opine that the company’s strategy to innovate with new products remains in line with its objective to fuel sales and maintain a competitive edge.
Elsewhere, TD Cowen sustained a positive stance on the company’s stock, maintaining a “Buy” rating and a consistent price objective of $78.00. Vivien Azer, an analyst, exhibited confidence in The Coca-Cola Company (NYSE:KO)’s ability to outperform its competitors, demonstrating numerous factors contributing to its strong growth prospects. The analyst demonstrated the company’s superior revenue growth, productivity, effective management, cost savings, and marketing strength as critical differentiators placing it well to navigate the market challenges. The Coca-Cola Company (NYSE:KO)’s emphasis on sustaining a balance between volume and value remains a critical aspect of its approach to maintaining growth.
3. Costco Wholesale Corporation (NASDAQ:COST)
Number of Billionaire Investors: 16
Number of Hedge Fund Holders: 96
Costco Wholesale Corporation (NASDAQ:COST) is engaged in the operation of membership warehouses. Bank of America Securities analyst Robert Ohmes reiterated a “Buy” rating on the company’s stock, setting a price objective of $1,095.00. The analyst’s rating is backed by factors demonstrating its strong performance and strategic positioning. Costco Wholesale Corporation (NASDAQ:COST) posted healthy financial results for Q2 2025, with EPS exceeding expectations despite the foreign exchange challenges. In Q2 2025, it saw diluted EPS of $4.02 as compared to $3.92 in Q2 2024. Elsewhere, analyst Zhihan Ma of Bernstein maintained a “Buy” rating on the company’s stock, boosting the price objective to $1,177.00.
This analyst believes that Costco Wholesale Corporation (NASDAQ:COST) has consistently surpassed the expectations, mainly in terms of sales, despite some minor setbacks related to margins and membership fee income. As per the analyst, Costco Wholesale Corporation (NASDAQ:COST) happens to be a high-quality company possessing numerous opportunities for global warehouse expansion, which can drive a long-term growth trajectory. Its business model gives it significant bargaining power and flexibility when it comes to adapting to changes in tariffs.
Furthermore, Costco Wholesale Corporation (NASDAQ:COST)’s relatively low exposure to imported goods bolsters the position, says the analyst. Overall, the growth of the broader FMCG sector remains well-aligned with the company’s core business model. With the demand for FMCG products increasing, the company can reap the benefits coming from increased scale, enhanced private-label opportunities, and broad-based product selection, together with expansion in the new markets.
2. Walmart Inc. (NYSE:WMT)
Number of Billionaire Investors: 20
Number of Hedge Fund Holders: 116
Walmart Inc. (NYSE:WMT) is engaged in the operation of retail and wholesale stores and clubs, e-commerce websites, and mobile applications. Morningstar believes that the company continues to make requisite investments to continue attracting consumers to its stores and fueling customer loyalty. The company’s investments can help it solidify the existing customer base and capture some incremental share from smaller brick-and-mortar retailers which tend to fail to adapt to consumer trends. Despite the fragmented and competitive landscape, Morningstar opines that Walmart Inc. (NYSE:WMT) has managed to carve out an enviable position, with the firm benefiting from proximity to the majority of US consumers, fueling repeat foot traffic.
Furthermore, the margin pressure is expected to abate as Walmart Inc. (NYSE:WMT)’s investments in omnichannel fulfillment as well as its third-party marketplace continue to scale. Elsewhere, Goldman Sachs kept a “Buy” rating on the company’s stock and a price objective of $106. The firm believes that Walmart Inc. (NYSE:WMT) appears to be well-placed to continue to fuel strong earnings growth in 2025, thanks to the market share gains considering the strong proposition of value and convenience. The company’s investments in e-commerce infrastructure and technology can provide strong returns over the upcoming years. Walmart Inc. (NYSE:WMT)’s online platform is expected to continue to be aided by improved logistics and last-mile delivery capabilities.
1. Philip Morris International Inc. (NYSE:PM)
Number of Billionaire Investors: 22
Number of Hedge Fund Holders: 102
Philip Morris International Inc. (NYSE:PM) operates as a tobacco company. Bonnie Herzog, an analyst from Goldman Sachs, reiterated a “Buy” rating on the company’s stock. Notably, the associated price target stood at $165.00. The rating is backed by factors demonstrating its promising future. As per the analyst, Philip Morris International Inc. (NYSE:PM)’s leadership continues to exhibit healthy confidence in its ability to witness sustainable growth and provide shareholder returns, thanks to its commitment to a smoke-free transformation. The analyst went on to add that the transition is aided by a strong multi-category strategy that focuses on capturing a significant share of the growing global nicotine market.
Elsewhere, Eric Serotta from Morgan Stanley maintained a “Buy” rating on the company’s stock with a price objective of $156.00. The rating is backed by Philip Morris International Inc. (NYSE:PM)’s robust positioning in the broader smoke-free product market. As per the analyst, the company remains optimistic about the sustained growth of the smoke-free portfolio, which consists of products such as IQOS and ZYN. With respect to the smoke-free business (SFB), Q4 2024 shipments of HTU and oral smoke-free products surpassed 40 billion units for the first time, fueling Philip Morris International Inc. (NYSE:PM)’s smoke-free business to a superior performance, with full-year net revenues rising 14.2% and gross profit improving 18.7%.
Broyhill Asset Management, an investment advisor, released a Q3 2024 investor letter. Here is what the fund said:
“Shares of Philip Morris International Inc. (NYSE:PM) gained 21% in Q3. Philip Morris was by far the largest contributor for the quarter. Our core thesis focuses on the shift in business mix from combustible cigarettes towards reduced risk products as well as the company’s re-entry to the US market with its acquisition of Swedish Match. This year, Zyn has become wildly popular. So much so that the company can barely keep it in stock, even as it expands production. We recently discussed how youth usage of these products, a common critique of the company, remains under 2%, even as its overall popularity drives higher volume.”
While we acknowledge the potential of PM as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than PM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
