In this article, we discuss the 5 best coffee stocks to invest in. If you want to read about some more best coffee stocks, go directly to 10 Best Coffee Stocks to Invest In.
5. Keurig Dr Pepper Inc. (NASDAQ:KDP)
Number of Hedge Fund Holders: 29
Keurig Dr Pepper Inc. (NASDAQ:KDP) operates as a beverage company in the United States and internationally. It is one of the elite coffee stocks to invest in. On August 19, the company announced that it would not be pursuing a purchase of Bang Energy. The clarification came after media reports indicated that the beverage firm was interested in the purchase of Bang Energy drinks from Vital Pharmaceuticals. The beverage firm is based in Burlington and was founded in 1981.
On September 14, Keurig Dr Pepper Inc. (NASDAQ:KDP) announced that the Board of Directors of the firm had approved a 6.7% increase in the yearly dividend rate to 80c per share, up from 75c per share previously.
At the end of the second quarter of 2022, 29 hedge funds in the database of Insider Monkey held stakes worth $629.98 million in Keurig Dr Pepper Inc. (NASDAQ:KDP), compared to 30 in the previous quarter worth $755 million.
4. The J.M. Smucker Company (NYSE:SJM)
Number of Hedge Fund Holders: 35
The J.M. Smucker Company (NYSE:SJM) manufactures and markets branded food and beverage products worldwide. It is one of the top coffee stocks to invest in. On August 23, the company posted earnings for the first fiscal quarter, reporting earnings per share of $1.67, beating estimates by $0.40. The revenue over the period was $1.8 billion, up over 0.5% compared to the revenue over the same period last year and in line with analyst estimates. The firm also raised revenue growth outlook to 4% – 5% versus prior outlook of 3.5% – 4.5%.
On August 24, Stifel analyst Christopher Growe raised the price target on The J.M. Smucker Company (NYSE:SJM) to $148 from $140 and kept a Hold rating on the shares. The analyst had a strong Q1 earnings report in relation to expectations about The J.M. Smucker Company (NYSE:SJM).
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in The J.M. Smucker Company (NYSE:SJM), with 1 million shares worth more than $131 million.
3. Monster Beverage Corporation (NASDAQ:MNST)
Number of Hedge Fund Holders: 46
Monster Beverage Corporation (NASDAQ:MNST) engages in the development, marketing, sale, and distribution of energy drink beverages and concentrates. The firm is among the best coffee stocks to invest in. On August 4, the company posted earnings for the second quarter, reporting earnings per share of $0.51, missing estimates by $0.18. The revenue over the period was $1.6 billion, up over 13% compared to the revenue over the same period last year and beating estimates by $50 million.
On August 5, UBS analyst Peter Grom maintained a Neutral rating on Monster Beverage Corporation (NASDAQ:MNST) stock and raised the price target to $99 from $94, noting the strong top line of the firm was more than offset by a lower gross margin in Q2.
Among the hedge funds being tracked by Insider Monkey, Washington-based firm Renaissance Technologies is a leading shareholder in Monster Beverage Corporation (NASDAQ:MNST), with 5.67 million shares worth more than $524 million.
In its Q2 2022 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and Monster Beverage Corporation (NASDAQ:MNST) was one of them. Here is what the fund said:
“Monster Beverage Corporation (NASDAQ:MNST) develops and sells energy drinks and concentrates. The company’s shares outperformed, driven by an impressive earnings report highlighted by better than expected organic growth. Management also gave guidance that indicated a potential bottom in gross margins, as well as upcoming price increases that helped give investors confidence in its growth outlook.”
2. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 50
McDonald’s Corporation (NYSE:MCD) operates and franchises McDonald’s restaurants in the United States and internationally. The company is one of the most prominent coffee stocks to invest in. On September 13, the company announced that it had reached a 15-year virtual power purchase agreement with EDF Renewables North America in a bid to address the electricity carbon footprint. Under the deal, the firm will purchase power from the 255 MWac / 332 MWdc Apollo Solar project.
On September 7, Piper Sandler analyst Nicole Miller Regan maintained an Overweight rating on McDonald’s Corporation (NYSE:MCD) stock and raised the price target to $270 from $263, noting the August comps for the firm were 5%, up 100 basis points sequentially.
Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm Bridgewater Associates is a leading shareholder in McDonald’s Corporation (NYSE:MCD), with 2 million shares worth more than $511 million.
1. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders: 55
Starbucks Corporation (NASDAQ:SBUX) operates as a roaster, marketer, and retailer of specialty coffee worldwide. The firm features on the list of best coffee stocks to invest in. The firm recently underwent a massive managerial change, with outgoing CEO Howard Schultz, who is also the founder of the famous coffee brand, replaced by Laxman Narasimhan.
On September 16, Piper Sandler analyst Nicole Miller Regan maintained a Neutral rating on Starbucks Corporation (NASDAQ:SBUX) stock and raised the price target to $92 from $84, noting the company was committing to a cultural reset in the field.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Starbucks Corporation (NASDAQ:SBUX), with 5.8 million shares worth more than $444 million.
In its Q2 2022 investor letter, Matrix Asset Advisors, an asset management firm, highlighted a few stocks and Starbucks Corporation (NASDAQ:SBUX) was one of them. Here is what the fund said:
“Starbucks Corporation (NASDAQ:SBUX) is a premiere global coffee brand supported by over 32,600 stores across the world. The firm has a long history of beverage innovation and strong employee/barista relations with the firm paying above-market wages and benefits. Starbucks has a strong balance sheet and finances. The company generates steady and consistent cash flow, selling millions of cups of premium coffee every day. The company’s share price declined in part due to its large business in China which was largely shut down due to Covid restrictions and because of rising commodity and labor costs. We think the shares are attractively priced for a company that should grow 10% plus per year with a dividend yield of 2.6% at our average cost.”
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