In this article, we will take a look at the 14 Best FMCG Stocks To Buy Now.
If you walk into a modern pantry, you’re almost guaranteed to find it well-stocked with everyday essentials like toilet paper, soap and toothpaste, beverages, and food. This reflects a simple reality: most consumers prefer to keep these items in ample supply. While consumers will always demand these products, they are not entirely indifferent to price increases during inflation. Instead, they might look to save money by buying in bulk or shopping at big-box stores. Regardless, they will continue to prioritize purchasing these necessities.
Known as fast-moving consumer goods (FMCG) or consumer packaged goods (CPG), these high-demand products are valued for their affordability and rapid turnover. They are considered “fast-moving” because they quickly sell off store shelves due to their regular use by consumers. Although investors typically look towards bonds and cash to manage risk, FMCG stocks offer a defensive alternative that can provide both growth and income. While these stocks may not generate spectacular growth opportunities and can lose value as interest rates rise, they generally decline less than other sectors during recessions. In fact, certain industries, such as food, tobacco, and alcohol, may even experience increased demand during economic downturns. As one of the world’s largest industries, the global FMCG sector has seen steady growth over the past decade, driven by the trend of experiential retailing, where shopping is viewed as a social activity. The global FMCG market is projected to reach $18,939.4 billion by 2031, with a compound annual growth rate (CAGR) of 5.1% from 2022 to 2031.
Following low deal volume and value in 2020, the consumer goods landscape saw a significant shift in M&A activity. In 2021, as sizable assets in the sector became scarce and prohibitively expensive, companies strategically moved toward a higher-volume, lower-deal-value approach. According to McKinsey, this trend peaked in 2021 with around 470 consumer goods deals globally. The distribution of M&A activity varied across subsectors regarding volume and value. Food remained the largest category by deal volume, accounting for about 40%, while beverages and durables together made up an additional 30%. On the other hand, in terms of deal value, personal care led the pack with 38%, primarily driven by large spin-offs of pharmaceutical companies’ consumer businesses. A notable example includes Johnson & Johnson’s $42 billion spin-off of Kenvue last year.
As of late May, several major retailers have reported their Q1 2024 earnings, offering valuable insights into the current state of the U.S. consumer’s sentiments. With consumer spending accounting for approximately 70% of the U.S. economy, shifts in spending patterns significantly impact growth and employment. Walmart, for example, observed changes in customer behavior, with CFO John Rainey noting in the company’s Q1 earnings call:
“Many consumer pocketbooks are still stretched, and we see the effect of that in our business mix as they’re spending more of their paychecks on non-discretionary categories and less on general merchandise. This merchandise mix remains a headwind to margins, but it’s consistent with our expectations.”
This indicates that consumers are prioritizing essential groceries over discretionary items like televisions. Walmart’s earnings suggest that while overall consumer spending remains steady, those with less disposable income are struggling and continue to seek value in their purchases. In any case, despite inflation and challenging market conditions, people still need to eat and buy essentials, making FMCG stocks more resilient compared to other sectors in the stock market.
A retail employee stocking shelves with consumer packaged goods/manufacturing products.
Our Methodology
After a comprehensive analysis of FMCG stocks listed on NYSE and NASDAQ using ETFs and internet rankings, we have curated a selection of the 14 top FMCG stocks to buy now according to hedge fuds.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 best hedge funds. Our quarterly newsletter’s strategy picks 14 small and large-caps every quarter and it has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
14 Best FMCG Stocks To Buy Now
14. Unilever PLC (NYSE:UL)
Number of Hedge Fund Holders: 20
Unilever PLC (NYSE:UL), established on September 2, 1929, is a British multinational fast-moving consumer goods company created from the merger of British soap maker Lever Brothers and Dutch margarine producer Margarine Unie. Headquartered in London, Unilever PLC (NYSE:UL) owns a diverse portfolio of popular brands including Ben & Jerry’s, Dove, Hellmann’s, Knorr, Lux, Magnum, Sunsilk, and Wall’s.
On March 19, Unilever PLC (NYSE:UL) announced its intention to spin off its ice cream business as part of its Growth Action Plan (GAP). According to the announcement, the ice cream division achieved sales of €7.9 billion in 2023. Post-separation, Unilever PLC (NYSE:UL) will concentrate on its four primary business units: Beauty & Wellbeing, Personal Care, Home Care, and Nutrition. Meanwhile, the newly formed entity, NewCo, will operate independently, establishing itself as a world-leading ice cream business. By spinning off the ice cream division, Unilever aims to simplify the company’s portfolio and achieve cost savings of €800.0 million over the next three years.
Recently, Redburn-Atlantic upgraded Unilever PLC (NYSE:UL) from Neutral to Buy, setting a price target of GBP51.00. This decision reflects the firm’s positive outlook on Unilever’s financial performance, anticipating a 20% potential upside from its current share price. Additionally, the company exceeded sales growth expectations in Q1, reporting a 4.4% increase in sales and a 2.2% rise in sales volumes, alongside a 2.2% price hike during the quarter.
In the first quarter of 2024, Unilever PLC (NYSE:UL) was included in the portfolios of 20 hedge funds, with a total stake value of $952.2 million. Fisher Asset Management emerged as the largest shareholder, holding a position worth nearly $525.05 million as of Q1 2024.
13. Dollar Tree, Inc. (NASDAQ:DLTR)
Number of Hedge Fund Holders: 39
Dollar Tree, Inc. (NASDAQ:DLTR) is a retail chain operating in the United States, offering a diverse range of products at various price points. Headquartered in Chesapeake, Virginia, the company boasts an extensive network of over 15,000 stores across the 48 contiguous U.S. states and Canada. Leveraging a widespread logistics network comprising 24 distribution centers, Dollar Tree primarily serves price-conscious customers.
That said, not everyone seems bullish on the retailer. Citi recently downgraded Dollar Tree, Inc. (NASDAQ:DLTR) from a Buy to a Neutral rating, reducing the price target from $163 to $120. This adjustment follows concerns over the company’s recent performance and strategic decisions, particularly regarding the Family Dollar segment.
The persistent issues with Family Dollar’s turnaround have raised significant concerns, with management’s decision to explore strategic alternatives suggesting a lack of confidence in resolving these problems, potentially indicating deeper structural issues. Furthermore, the Dollar Tree segment failed to meet its comparable store sales targets in the first quarter, and the implementation of multi-price points has faced execution challenges.
According to Insider Monkey’s fourth-quarter database, 39 hedge funds expressed bullish sentiments towards Dollar Tree, Inc. (NASDAQ:DLTR), the same as the preceding quarter. Mantle Ridge LP, led by Paul Hilal, holds the largest position in the company, with 12.1 million shares valued at $1.6 billion.
12. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 39
General Mills, Inc. (NYSE:GIS) is a leading American multinational company known for producing and marketing branded processed consumer foods, widely distributed through retail channels. The company’s roots date back to its founding near Saint Anthony Falls in Minneapolis, along the Mississippi River, where it initially gained recognition as a major flour milling operation.
General Mills, Inc. (NYSE:GIS) missed analysts’ expectations in Q2 FY2024, reporting a 1.6% year-on-year decline in revenue to $5.14 billion. The company posted a non-GAAP profit of $1.25 per share, up from $1.10 per share in the same quarter last year. Despite improvements in margins leading to an EPS beat, the company fell short in volume growth, organic revenue growth, and total revenue. Additionally, General Mills, Inc. (NYSE:GIS) lowered its full-year revenue outlook, citing a “slower volume recovery.”
Speaking on the results, General Mills Chairman and Chief Executive Officer Jeff Harmening made the following statement:
“While we saw a slower-than-expected volume recovery in the second quarter amid a continued challenging consumer landscape, we generated bottom-line growth thanks primarily to strong HMM cost savings.”
As of the end of Q1 2024, Insider Monkey’s database revealed that 39 hedge funds had invested in General Mills, Inc. (NYSE:GIS). The largest stakeholder was Two Sigma Advisors, managed by John Overdeck and David Siegel, holding approximately 2.63 million shares valued at about $184.13 million.
11. Monster Beverage Corporation (NASDAQ:MNST)
Number of Hedge Fund Holders: 43
Monster Beverage Corporation (NASDAQ:MNST) is a renowned American company specializing in the development, marketing, sale, and distribution of energy drink beverages and concentrates, featuring popular brands like Monster Energy, Relentless, and Burn.
On May 2, 2024, Monster Beverage Corporation (NASDAQ:MNST) unveiled its financial results for the first quarter ended March 31, 2024, demonstrating a performance closely aligned with analyst expectations for earnings per share while highlighting substantial revenue growth. The company reported a significant increase in net sales, climbing by 11.8% to $1.90 billion from $1.70 billion in the same period last year. This growth slightly surpassed the estimated revenue of $1,901.39 million. The net income for the quarter reached $442.0 million, marking an 11.2% year-over-year increase, albeit falling slightly short of the estimated net income of $451.27 million.
On the other hand, Roth/MKM has maintained a Neutral rating on Monster Beverage (NASDAQ: MNST) but lowered the price target from $59.00 to $56.00. The firm’s analyst attributed the reduction to slowing growth in Monster Beverage’s key market, with expectations that the company will continue to explore other beverage segments where it currently has less market dominance. Recently, Monster Beverage Corporation (NASDAQ:MNST) completed a Dutch tender offer, a financial maneuver in which a company buys back its own shares from the market. This action can often increase the value of remaining shares and boost the company’s EPS. However, the expected slowdown in sales growth within the US energy drink sector seems to overshadow the potential benefits of the tender offer.
According to data from Insider Monkey, a total of 43 hedge funds held stakes in Monster Beverage Corporation (NASDAQ:MNST). The most substantial ownership was attributed to Broadwood Capital, led by Neal C. Bradsher, which held a significant stake in the company valued at $491.76 million.
10. Sysco Corporation (NYSE:SYY)
Number of Hedge Fund Holders: 46
Sysco Corporation (NYSE:SYY), the largest wholesale food distributor in the United States, is a multinational corporation involved in the marketing and distribution of food products, smallwares, kitchen equipment, and tabletop items to a variety of establishments, including restaurants, healthcare facilities, and educational institutions.
In its latest earnings release, Sysco Corporation (NYSE:SYY) provided a strong outlook for the full fiscal year. The company reported a 2.7% year-over-year revenue growth to $19.4 billion, while its adjusted EPS increased by 6.7% to $0.96, slightly surpassing the consensus estimate of $0.95. However, revenue fell short of analysts’ expectations by $286 million.
Sysco Corporation (NYSE:SYY) currently offers a quarterly dividend of $0.51 per share, up from $0.50, yielding 2.87%. As a Dividend King, Sysco has achieved 54 consecutive years of dividend growth.
At the end of March 2024, 46 hedge funds tracked by Insider Monkey held stakes in Sysco Corporation (NYSE:SYY), an increase from the 39 in the previous quarter. These holdings were collectively valued at over $937.3 million.
Aristotle Capital’s Value Equity Strategy stated the following regarding Sysco Corporation (NYSE:SYY) in its first quarter 2024 investor letter:
“During the quarter, we sold our positions in Phillips 66 and Sysco Corporation (NYSE:SYY) and invested in two new positions: Lowe’s Companies and TotalEnergies.
We have owned Sysco, one of the largest food distribution companies in the world, since the fourth quarter of 2022. During our holding period, Sysco’s CEO Kevin Hourican has made progress transforming various aspects of the business, including implementing new technologies able to assist customers with their own changing menus and needs. Through leveraging its scale and purchasing power, we continue to view Sysco as well positioned to gain further share of the highly fragmented U.S. food distribution market, all while sustaining its more than 50-year streak of increasing dividends. Though the company meets each of our criteria for investment, we decided it was the best candidate for sale to fund the purchase of Lowe’s Companies, which we believe is a more optimal investment.”
9. The Kroger Co. (NYSE:KR)
Number of Hedge Fund Holders: 46
The Kroger Co. (NYSE:KR), commonly known as Kroger, is a prominent American retail corporation operating a vast network of supermarkets and multi-department stores across 35 states, totaling over 2,700 locations. This extensive footprint secures its status as one of the world’s leading food retailers.
Jefferies reaffirmed its Hold rating on The Kroger Co. (NYSE:KR) with an unchanged price target of $53.00. This decision precedes the supermarket chain’s upcoming first-quarter earnings report on June 20th. Analysts are closely monitoring consumer behavior trends amid economic pressures, particularly their potential impact on Kroger’s performance. Observations indicate a stabilization in demand, driven by consumer preferences for value, including a focus on lower price points, shifts between shopping channels, and a tendency to opt for more economical choices. Similar patterns seen in the broader retail and manufacturing sectors suggest these dynamics are influencing Kroger as well.
Meanwhile, The Kroger Co. (NYSE:KR) continues to make strategic strides to strengthen its market position. The company has issued an earnings per share guidance of $4.40 for 2024 at the midpoint, with potential to exceed $5 by 2025, contingent upon factors like EBIT growth resumption and effective share repurchase execution. Revenue projections indicate a steady path, targeting $150.039 billion for 2024.
In the first quarter of 2024, Warren Buffett’s Berkshire Hathaway held 50 million shares of The Kroger Co. (NYSE:KR), with a total value exceeding $2.85 billion, representing 0.86% of the firm’s portfolio.
In its fourth quarter 2023 investor letter, Oakmark Global Fund stated the following regarding The Kroger Co. (NYSE:KR):
“The Kroger Co. (NYSE:KR) (U.S.) is the second-largest grocery retailer in America, behind only Walmart. Although the grocery industry is highly competitive, Kroger’s scale advantages allow it to offer a more compelling value proposition than smaller peers and earn higher returns on capital. In recent years, the market has assigned Kroger a lower multiple due to concerns that e-commerce would disrupt traditional brick-and-mortar grocery businesses. However, we believe Kroger’s performance through the pandemic highlighted that its store footprint, distribution infrastructure, technology investments and strong brand all position the company well for a world with higher online grocery adoption. The stock trades for just 10x our estimate of next year’s EPS, which we believe is attractive given Kroger’s competitive positioning and earnings growth outlook. The pending merger with Albertsons could accelerate the company’s earnings growth and produce additional scale advantages. If the merger is not approved, the company will have the capacity to return over 25% of its market cap to shareholders.”
8. Colgate-Palmolive Company (NYSE:CL)
Number of Hedge Fund Holders: 50
Colgate-Palmolive Company (NYSE:CL) is a multinational corporation headquartered in Midtown Manhattan, New York City, on Park Avenue. The company focuses on manufacturing, distributing, and offering a diverse range of household, healthcare, personal care, and veterinary products. It pays a quarterly dividend of $0.50 per share, having increased it by 4% in March this year, extending its dividend growth streak to 62 years.
At the tail-end of May, Morgan Stanley revised its outlook on Colgate-Palmolive Company (NYSE:CL), raising the price target to $103 from $101 while maintaining an Overweight rating. The updated report highlighted Colgate-Palmolive’s ability to exceed consensus expectations in organic sales growth (OSG) and earnings per share. This growth trajectory is viewed as sustainable, supported by the company’s robust balance relative to its peers in the Consumer Packaged Goods (CPG) sector. Additionally, Colgate-Palmolive Company (NYSE:CL) has demonstrated solid revenue growth of 7.71% over the past twelve months as of Q1 2024.
By the end of Q1 2023, 50 hedge funds tracked by Insider Monkey reported owning stakes in Colgate-Palmolive Company, down from 54 in the previous quarter, with these stakes valued at over $2.12 billion.
7. Mondelez International, Inc. (NASDAQ:MDLZ)
Number of Hedge Fund Holders: 53
Mondelez International, Inc. (NASDAQ:MDLZ), branded as Mondelēz International, is a Chicago-based multinational company specializing in confectionery, food, beverages, and snack foods. Currently, Mondelez International, Inc. (NASDAQ:MDLZ) offers a quarterly dividend of $0.43 per share and has consistently increased its dividends for the past nine years.
Earlier this May, Mondelez International, Inc. (NASDAQ:MDLZ) reported strong first-quarter earnings that exceeded analyst expectations. The snack food giant posted an adjusted earnings per share (EPS) of $0.95, beating the consensus estimate of $0.89 by $0.06. Revenue came in at $9.29 billion, surpassing analysts’ forecast of $9.17 billion.
Despite the positive earnings, Mondelez International, Inc. (NASDAQ:MDLZ)’s outlook for 2024 reflects a cautious approach amid a volatile geopolitical environment. The company anticipates organic net revenue growth of 3% to 5% and high single-digit adjusted EPS growth on a constant currency basis, factoring in the 2023 adjusted EPS, which includes the developed market gum business.
In Q1 2024, the number of hedge funds in Insider Monkey’s database holding positions in Mondelez International, Inc. (NASDAQ:MDLZ) increased to 53, up from 51 in the previous quarter. The total value of these holdings now exceeds $966 million, with Bridgewater Associates emerging as the company’s leading stakeholder in Q1.
6. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 62
Established in 1892, The Coca-Cola Company (NYSE:KO) is a renowned American multinational corporation celebrated for its iconic beverage, Coca-Cola. Beyond its flagship product, the company is extensively involved in the manufacturing, distribution, and promotion of a diverse array of non-alcoholic beverage concentrates, syrups, and, notably, alcoholic beverages within the beverage industry.
Earlier this May, Argus increased its price target for The Coca-Cola Company (NYSE:KO) shares from $70.00 to $72.00, while reiterating a Buy rating. The firm praised Coca-Cola’s strategic shift towards diversifying its revenue streams beyond traditional sugary sodas. Management’s efforts to streamline the business by eliminating over 600 unproductive items in 2019, along with repositioning through product, packaging, and size changes, as well as strategic acquisitions like Costa Coffee, were highlighted as key steps in this transformation.
Furthermore, The Coca-Cola Company reported first-quarter diluted EPS of $0.74, up from $0.72 in the same period last year, exceeding analysts’ expectations. Revenue grew 2.9% year-over-year to $11.3 billion, also beating forecasts. The company attributed the revenue boost to a 13% increase in price/mix, despite a 2% decline in concentrate sales.
As of March of this year, Insider Monkey’s tracking identified 62 hedge funds with stakes in The Coca-Cola Company (NYSE:KO), the same as the prior quarter. The total value of these stakes amounted to nearly $28.5 billion.
5. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 62
PepsiCo, Inc. (NASDAQ:PEP), headquartered in Purchase, New York, is a leading American multinational corporation in the food, snack, and beverage industry. Notably, PepsiCo’s shares have exhibited significant growth, rising approximately 23.05% over the past five years. Known for its robust financial foundation, PepsiCo has impressively increased its dividends for 51 consecutive years. It currently pays a quarterly dividend of $1.36 per share, resulting in a yield of 3.32%.
On May 16, Jefferies updated its outlook on PepsiCo (NASDAQ:PEP) shares, raising the price target from $209 to $211 while maintaining a Buy rating. The firm noted that after acquiring its US bottlers, PepsiCo’s North America Beverages (PBNA) segment margins initially stood at 18% but have since declined to 11%. Jefferies’ report highlights several factors that could lead to improved PBNA margins, including a revamped product portfolio, a larger asset base, and reduced capital expenditure. Additionally, stable input costs are expected to support margin improvement.
By the end of Q1 2024, 62 hedge funds included PepsiCo, Inc. (NASDAQ:PEP) in their portfolios, according to Insider Monkey’s database. Fisher Asset Management emerged as the largest stakeholder, with holdings of 6.95 million shares valued at $1.21 billion.
4. Philip Morris International Inc. (NYSE:PM)
Number of Hedge Fund Holders: 64
Philip Morris International Inc. (NYSE:PM) is a multinational tobacco corporation originating from the United States, serving consumers in over 180 countries worldwide. The company’s flagship product is Marlboro, positioning it prominently among the giants of “Big Tobacco.”
Philip Morris International (NYSE:PM) recently announced a quarterly dividend of $1.30 per share, or $5.20 annualized. The dividend is payable on July 8, 2024, to stockholders of record as of June 21, 2024, with an ex-dividend date of June 20, 2024.
Furthermore, despite facing challenges in the traditional smoking product segments, Philip Morris International Inc. (NYSE:PM) increased its Q1 revenue by 3.5% year-over-year, as Americans shift from combustible tobacco products to smoke-free alternatives. Analysts attribute this smooth transition to the success of Philip Morris’s smoke-free product category, led by IQOS and VEEV vapes.
By the end of the first quarter, 64 of the 919 hedge funds tracked by Insider Monkey held shares in Philip Morris International Inc. (NYSE:PM). The largest shareholder was Fundsmith LLP, managed by Terry Smith, with a $1.35 billion investment in the company.
3. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 67
Costco Wholesale Corporation (NASDAQ:COST) operates a global network of membership warehouses primarily under the “Costco Wholesale” brand, offering high-quality, brand-name products at significantly reduced prices compared to conventional wholesale or retail sources.
On June 7, Deutsche Bank reiterated its positive outlook on Costco Wholesale Corporation (NASDAQ:COST), maintaining a Buy rating and a price target of $925.00. The retail giant is praised for its resilience in a volatile consumer market, showing steady adjusted U.S. core comparable sales growth of 5.7%. This performance aligns with the previous month’s results and is bolstered by an increase in both U.S. and global customer traffic.
Costco Wholesale Corporation (NASDAQ:COST)’s discretionary segment performed robustly, with same-store sales (SSS) growing in the mid-single to high-single digits in June, marking a slight improvement from the previous month. Additionally, e-commerce was a strong performer for the retailer, with a 15.4% increase compared to 14.8% in April.
According to Insider Monkey’s first-quarter database, 67 hedge funds expressed bullish sentiments towards Costco Wholesale Corporation (NASDAQ:COST), up from 57 in the previous quarter. Fisher Asset Management, led by Ken Fisher, holds the largest position in the company, with 2.86 million shares valued at $2.09 billion.
Madison Sustainable Equity Fund stated the following regarding Costco Wholesale Corporation (NASDAQ:COST) in its fourth quarter 2023 investor letter:
“Costco Wholesale Corporation (NASDAQ:COST) reported solid holiday results and announced a special dividend of $15 per share. Earnings were better than expected driven by better gross margin. Same store sales were 3.9% with solid traffic. Costco also noted better discretionary trends and solid seasonal sales.”
2. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 69
The Procter & Gamble Company (NYSE:PG), headquartered in Cincinnati, Ohio, is a renowned global consumer goods corporation. Founded in 1837 by William Procter and James Gamble, the company boasts an extensive portfolio of branded consumer packaged goods, distributed worldwide across various segments, including Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care.
Earlier this April, The Procter & Gamble Company (NYSE:PG) reported its fiscal Q3 results, with adjusted EPS of $1.52, surpassing estimates by $0.11. Revenue for the quarter rose 0.6% year-over-year to $20.2 billion, but fell short of estimates by $240 million.
On April 28, Argus updated its price target for The Procter & Gamble Company (NYSE:PG), raising it from $180 to $185 and maintaining a Buy rating. The firm emphasized the company’s potential for long-term earnings and share-price growth, driven by continuous product innovation, productivity enhancements, and improved advertising strategies. Innovations like Dawn Powerwash have been pivotal in capturing additional market share, allowing P&G to successfully implement price increases to offset inflationary pressures, even as some consumers switch to lower-priced store brands.
According to Insider Monkey’s database of 919 hedge funds, 69 reported owning stakes in Procter & Gamble Co. (NYSE:PG) as of the end of the March quarter. The largest stake during this period was held by Ken Fisher’s Fisher Asset Management, which owns a $2.7 billion stake in Procter & Gamble Co. (NYSE:PG).
1. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 88
Walmart Inc. (NYSE:WMT) is a leading American retail giant renowned for its extensive network of hypermarkets, discount department stores, and grocery outlets strategically located across the United States. The company’s headquarters are in Bentonville, Arkansas.
On June 11, JPMorgan analysts upgraded Walmart Inc. (NYSE:WMT) shares from Neutral to Overweight, raising the price target to $81 per share from $66. The bank cited Walmart’s strong balance of defensive and offensive strategies, both in revenue and earnings, amidst a softening consumer market and an uncertain second half of 2024. JPMorgan emphasized several US topline “tailwinds” for the retailer, including a consumer base focused on value, the potential for modest grocery price increases, and continued gains in general merchandise market share. Additionally, analysts highlighted an under-appreciated improvement in Walmart Inc. (NYSE:WMT)’s profitability within its international business.
Earlier on May 16, Walmart Inc. (NYSE:WMT) reported strong Q1 results. The company posted an adjusted EPS of $0.60, exceeding estimates by $0.08. Revenue for the quarter increased by 6% year-over-year to $161.5 billion, surpassing estimates by $3.36 billion.
In Insider Monkey’s database of 919 hedge funds, 88 reported owning stakes in Walmart Inc. (NYSE:WMT). The largest stakeholder during this period was Ken Fisher’s Fisher Asset Management, with a $2.6 billion stake in Walmart Inc. (NYSE:WMT).
While we acknowledge the potential of Walmart Inc. (NYSE:WMT), our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TMO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These 10 Stocks in June.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
