5 Best Delivery Stocks To Buy Heading Into 2023

In this article, we discuss 5 best delivery stocks to buy heading into 2023. If you want to see more stocks in this selection, check out 11 Best Delivery Stocks To Buy Heading Into 2023. 

5. HelloFresh SE (OTC:HLFFF)

Number of Hedge Fund Holders: N/A

HelloFresh SE (OTC:HLFFF) is a German company that delivers ready-to-make meal kits to prepare home-cooked meals to customers. The company has operations in the United States, Australia, Austria, Belgium, Canada, Germany, France, Luxembourg, the Netherlands, New Zealand, Switzerland, Sweden, Denmark, Norway, Italy, Japan, and the United Kingdom. HelloFresh SE (OTC:HLFFF) is one of the best delivery stocks to invest in. On October 27, the company posted a Q3 GAAP EPS of €0.02 and a revenue of €1.86 billion, up 31% year-over-year. 

On November 20, Goldman Sachs analyst Rob Joyce assumed coverage of HelloFresh SE (OTC:HLFFF) with a Buy rating and a €44 price target. While meal kits are a new category, with no history of surviving a recession, the analyst noted that HelloFresh SE (OTC:HLFFF) is the prominent category leader in an under-penetrated market, and at over 300%, its 3-year growth in Q3 2022 was the quickest among global e-commerce peers. HelloFresh has also multiple expansion plans, which the analyst believes will drive growth in the medium/long-term.

4. Deliveroo plc (LSE:ROO.L)

Number of Hedge Fund Holders: N/A

Deliveroo plc (LSE:ROO.L) is a London-based company operating an online food delivery platform. The company connects local consumers, restaurants, supermarkets, and riders to complete an online purchase. Deliveroo plc (LSE:ROO.L) serves customers in Australia, Belgium, France, Hong Kong, Italy, Ireland, the Netherlands, Singapore, the United Arab Emirates, Kuwait, and the United Kingdom. It is one of the best delivery stocks to consider buying for 2023. 

Morgan Stanley analyst Navina Rajan on November 4 maintained an Equal Weight rating on Deliveroo plc (LSE:ROO.L) but lowered the price target on the shares to 120 GBp from 150 GBp. 

3. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 68

Walmart Inc. (NYSE:WMT) operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, discount stores, membership-only warehouse clubs, e-commerce websites, and mobile commerce applications. Walmart Inc. (NYSE:WMT) is one of the best delivery stocks to monitor. On November 15, the company reported a Q3 non-GAAP EPS of $1.50 and a revenue of $152.8 billion, outperforming Wall Street forecasts by $0.18 and $6 billion, respectively. 

On November 17, Morgan Stanley analyst Simeon Gutman raised the price target on Walmart Inc. (NYSE:WMT) to $164 from $150 and reiterated an Overweight rating on the shares based on higher estimates following the company’s Q3 “beat & raise” and rolling forward his valuation framework to FY25 estimates.

According to Insider Monkey’s Q3 data, 68 hedge funds were bullish on Walmart Inc. (NYSE:WMT), compared to 67 funds in the preceding quarter. Ray Dalio’s Bridgewater Associates held a notable stake in the company, comprising 4 million shares worth $522.6 million. 

In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Walmart Inc. (NYSE:WMT) was one of them. Here is what the fund said:

“The pandemic has created challenges for businesses large and small; one major challenge for large essential retailers such as ClearBridge holdings Home Depot, Walmart Inc. (NYSE:WMT) and Costco has been ensuring adequate staffing to meet demand under trying conditions. All three instituted enhanced pay practices during the pandemic, with raises, unplanned bonuses and other benefits helping compensate employees for their efforts in a difficult environment. In September 2020 Walmart raised wages for 165,000 employees, including a number of entry positions to $15 an hour. It followed this in February with a raise for 425,000 workers that moved its average pay above $15 an hour.”

2. Uber Technologies, Inc. (NYSE:UBER)

Number of Hedge Fund Holders: 142

Uber Technologies, Inc. (NYSE:UBER) is one of the premier delivery stocks to buy heading into 2023. On November 9, Uber Technologies, Inc. (NYSE:UBER) and Grocery Outlet Holding Corp. (NASDAQ:GO) announced that they have expanded their on-demand grocery delivery partnership across the United States.

Cowen analyst John Blackledge on October 24 reiterated an Outperform rating on Uber Technologies, Inc. (NYSE:UBER) but trimmed the price target on the shares to $70 from $76. The analyst expects Uber Technologies, Inc. (NYSE:UBER)’s Q3 2022 Gross Bookings at the high end of the guidance, supported by the continuous recovery in Mobility and expansion of core EBITDA margins.

Among the hedge funds tracked by Insider Monkey, Uber Technologies, Inc. (NYSE:UBER) was part of 142 public stock portfolios at the end of Q3 2022, compared to 129 in the prior quarter. Philippe Laffont’s Coatue Management is a significant position holder in the company, with 16.6 million shares worth $440.6 million.  

Artisan Partners made the following comment about Uber Technologies, Inc. (NYSE:UBER) in its Q3 2022 investor letter:

“During the quarter, we began new GardenSM campaigns in Uber Technologies, Inc. (NYSE:UBER) and Shopify. In July, we initiated our position in Uber, a leader in global ride-hailing and online food delivery. We believe the company is well positioned to benefit from strong secular tailwinds in both of its core businesses. Earlier this year, management outlined a plan at its investor day to achieve $4 billion of free cash flow by 2024, an encouraging commitment given investors have maligned the company for years of being unprofitable. We witnessed solid progress toward achieving this goal in the company’s most recent earnings results, where it beat expectations for the quarter on both fronts and delivered positive FCF for the first time. The company also indicated it isn’t seeing any evidence of slowing demand. We recognize the execution risk associated with Uber achieving its long-term targets, and the path likely won’t be linear, which is why we are keeping our position size modest until we see signs of continued operational momentum in the coming quarters.”

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 269

Amazon.com, Inc. (NASDAQ:AMZN) is one of the leading delivery stocks to watch. Amazon offers fast delivery to Prime members. Piper Sandler analyst Thomas Champion on November 22 maintained an Overweight rating on Amazon.com, Inc. (NASDAQ:AMZN) but lowered the price target on the shares to $119 from $125. While AWS seems to be slowing, this looks to be more of an industry-wide phenomenon rather than Amazon specific, the analyst wrote in a research note. The analyst said AWS retains industry leading infrastructure-as-a-service market share of 50% among the “Big-4” providers. While the analyst trimmed estimates to reflect industry headwinds, he remains bullish on Amazon.com, Inc. (NASDAQ:AMZN) shares.

Among the hedge funds tracked by Insider Monkey, 269 funds were long Amazon.com, Inc. (NASDAQ:AMZN) at the end of September 2022, compared to 252 funds in the prior quarter. Jaime Sterne’s Skye Global Management held the largest stake in the company, with 15.5 million shares worth $1.75 billion. 

Baron Funds made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2022 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest e-commerce retailer and cloud services provider. Shares of Amazon increased 6% in the quarter after the company reported strong results with 7% year-over-year revenue growth driven by 33% growth in Amazon Web Services (AWS), Amazon’s leading cloud computing service, while guiding for an acceleration in third quarter revenue growth, which is expected to be between 13% and 17% year-over-year. Amazon’s share of e-commerce is roughly 40%, far ahead of competition, yet domestic e-commerce accounted for only 14.5% of total retail sales (according to U.S. Census Bureau data for the second quarter of 2022), implying durable growth opportunities ahead. Internationally, the opportunity remains large as Amazon still has less than a 2% market share of international retail spending. Its advertising share is also only 3% and growing, underpinned by the structural closed-loop systems it enables (merchants know exactly whether their ad dollars resulted in a purchase since they are all done on the Amazon platform), which enables accurate targeting and measurement. Lastly, AWS has a good runway for growth as the industry still represents only 9.5% out of the $4.3 trillion of global IT spending according to Gartner. Areas such as logistics and health care present additional optionality.”

You can also take a look at 16 Largest Media Companies in the World in 2022 and 15 Biggest Holding Companies in the World.