12 Best FMCG Stocks To Buy According to Hedge Funds

2. The Coca-Cola Company (NYSE:KO)

Number of Hedge Fund Holders: 69

The Coca-Cola Company (NYSE:KO) is one of the most recognized brands internationally. It operates as a prominent multinational beverage company. Its competitive edge lies in its strong brand recognition which has made its products to become a home staple not only in the United States but throughout the globe. This branding power driven by consistent products has led to strong customer loyalty, allowing the company to implement strategic pricing adjustments without significantly impacting demand. Therefore, despite experiencing a 1% decline in unit sales in the fiscal third quarter of 2024, The Coca-Cola Company (NYSE:KO) effectively countered this with well-executed pricing strategies.

On February 4, Robert Ottenstein of Evercore ISI maintained a Buy rating on the stock with a price target of $72. The company’s Q3 exceeded analyst expectations by $290 million and reported a revenue of $12 billion. Moreover, it also demonstrated robust cash flow performance with $2.9 billion in operating cash flow and $1.6 billion in free cash flow. The Coca-Cola Company (NYSE:KO) also offers a quarterly dividend of $0.485 per share, contributing to an annual dividend of $1.94 per share and yielding approximately 3%, making it an attractive investment opportunity. It is the second-best FMCG stock to buy according to hedge funds.