12 Best FMCG Stocks To Buy According to Hedge Funds

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4. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 58

PepsiCo, Inc. (NASDAQ:PEP) is an international producer and seller of renowned snacks and drinks. It is the company behind popular drinks including Pepsi-Cola, Mountain Dew, Gatorade, and more. The company also produces popular snacks under the brand names Lay’s, Doritos, and Cheetos.

On February 6, Zheng Feng Chee, an analyst from DBS, maintained a Buy rating on the stock with a price target of $172. Feng Chee kept the Buy rating for various reasons, including the company’s focus on strategic product development and category diversification. For instance, PepsiCo, Inc. (NASDAQ:PEP) in January closed its acquisition deal of Siete Foods for $1.2 billion. Siete Foods makes food for people looking for grain-free and dairy-free options. Analyst Fee Chee expects this will further diversify the product portfolio of the company thereby boosting growth by tapping into the underpenetrated away-from-home food segment.

Moreover, Fend Chee also sees substantial growth potential in international markets due to lower per capita consumption of snacks and beverages compared to the US. During fiscal 2024 the company generated $91.8 billion in revenue up slightly from the $91.4 billion generated in 2023. Management during its fiscal fourth-quarter earnings call indicated their plan to build upon the successful expansion of international business while focusing on the North American segment. It is one of the best FMCG stocks to buy according to hedge funds.

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