12 Best FMCG Stocks To Buy According to Hedge Funds

9. Keurig Dr Pepper Inc. (NASDAQ:KDP)

Number of Hedge Fund Holders: 38

Keurig Dr Pepper Inc. (NASDAQ:KDP) is a leading non-alcoholic beverage company in North America. It produces and sells both hot and cold drinks, including sodas such as Dr Pepper, and Canada Dry, juices like Mott’s, coffee from Green Mountain Coffee Roasters, and more. The company also makes the Keurig brewing system, which allows people to make single cups of coffee using K-Cup pods.

On January 17, Lauren Lieberman, analyst at Barclays maintained a Buy rating on the stock, while keeping the price target of $36. Oakmark Select Fund in its fourth quarter investor letter for 2024 stated they like the soft drink portfolio and impressive track record of the volume and market share growth. During the fiscal third quarter of 2024, the company increased its net sales by 2.3%, with net income growing 18.9% year-over-year. The US refreshment beverages segment was a notable contender with a growth of 5.3%, driven by volume/mix growth and higher prices. It is one of the best FMCG stocks to buy right now.

Oakmark Select Fund stated the following regarding Keurig Dr Pepper Inc. (NASDAQ:KDP) in its Q4 2024 investor letter:

“Keurig Dr Pepper Inc. (NASDAQ:KDP) is one of North America’s leading beverage companies, with dominant positions in single-serve coffee and flavored soft drinks. The soft drink portfolio has an impressive track record of volume growth and market share gains. We believe this performance can continue due to favorable demographic trends, brand strength, and distribution advantages. Recently, weakness in the Keurig coffee division caused the stock price to come under pressure. However, we believe these industry-wide challenges will prove transitory because coffee remains a popular beverage. Keurig’s coffee division is poised to capitalize on this demand with the largest installed base of single-serve brewers and ample runway to increase household penetration. At the current quote, the market ascribes minimal value to Keurig. We were happy to purchase shares in this above-average business at a discount to the market multiple, other beverage peers and private market transactions.”