In this article, we discuss the 5 best FMCG stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 11 Best FMCG Stocks To Buy Now.
5. The Home Depot, Inc. (NYSE: HD)
Number of Hedge Fund Holders: 64
Ranking 5th on the list of 11 best FMCG stocks to buy now is The Home Depot, Inc. (NYSE: HD). The company was founded in 1978 and operates over 2,312 branches worldwide. The Home Depot, Inc. (NYSE: HD) is a home improvement retailer that markets consumer needs for building materials, home decor, and garden supplies.
In 2020, The Home Depot, Inc. (NYSE: HD) acquired maintenance, repair, and operations product provider HD Supply. The acquisition of HD Supply establishes the company as a leader in the highly fragmented MRO business.
Credit Suisse analyst Lavesh Hemnani raised the price target on The Home Depot, Inc. (NYSE: HD) from $319 per share to $330 per share this May, while keeping his Outperform rating on the stock.
The company has a market cap of $348.47 billion and currently offers a dividend yield of 2.01%. In the second quarter of 2021, The Home Depot, Inc. (NYSE: HD) reported an EPS of $4.53, beating estimates by $0.10. The company’s second-quarter revenue came in at $41.12 billion, up 8.1% year-over-year and beating revenue estimates by $380.39 million.
By the end of the second quarter of 2021, 64 hedge funds out of the 873 tracked by Insider Monkey held stakes in The Home Depot, Inc. (NYSE: HD) worth roughly $4.17 billion. This is compared to 68 hedge funds in the previous quarter with a total stake value of approximately $4.35 billion.
Nelson Capital Management mentioned The Home Depot, Inc. (NYSE: HD) in its Q2 2021 investor letter:
“In the consumer discretionary sector, we trimmed pandemic winners in favor of companies we believe will outperform in a recovery period. We also trimmed our position in Home Depot (tkr: HD), as it will be challenged by tough comparable statistics, supply chain issues, and rising commodity costs.”
4. Pepsico, Inc. (NYSE: PEP)
Number of Hedge Fund Holders: 66
Pepsico, Inc. (NYSE: PEP) ranks 4th on the list of 11 best FMCG stocks to buy now. The multinational food and beverage company is based in New York and was founded in 1898. Pepsico, Inc. (NYSE: PEP) operates over 300 manufacturing plants worldwide.
In 2020, Pepsico, Inc. (NYSE: PEP) acquired energy drink maker Rockstar Energy Beverages for $3.86 billion. In April 2021, Rockstar Energy Beverages introduced its new packaging, elevating the brand and giving the energy drink a new visual identity in the international market.
This July, Wells Fargo analyst Chris Carey raised his price target on shares of Pepsico, Inc. (NYSE: PEP) to $160 per share from $147 per share and kept his Equal Weight rating on the stock. Carey believes the company’s second-quarter results were above expectations.
The company has a market cap of $218.17 billion and currently offers a dividend yield of 2.72%. In the second quarter of 2021, Pepsico, Inc. (NYSE: PEP) reported an EPS of $1.72, beating estimates by $0.17. The company’s second-quarter revenue came in at $19.22 billion, up 20.5% year-over-year and beating estimates by $1.27 billion.
By the end of the second quarter of 2021, 66 hedge funds out of the 873 tracked by Insider Monkey held stakes in Pepsico, Inc. (NYSE: PEP) worth roughly $5.19 billion. This is compared to 61 hedge funds in the previous quarter with a total stake value of approximately $4.88 billion.
3. Target Corporation (NYSE: TGT)
Number of Hedge Fund Holders: 66
Ranking 3rd on the list of 11 best FMCG stocks to buy now is Minnesota-based American retails giant Target Corporation (NYSE: TGT). The company first opened its discount store in 1962. Today, Target Corporation (NYSE: TGT) has over 1,844 stores throughout the United States.
In 2020, Target Corporation (NYSE: TGT) announced plans of acquiring same-day delivery tech Deliv. Target will use Deliv in its research and development efforts to improve the delivery process.
Baird analysts raised the price target of Target Corporation (NYSE: TGT) to $285 per share from $250 per share on August 19th and kept his Outperform rating on the stock.
The company has a market cap of $123.65 billion and currently offers a dividend yield of 1.43%. In the second quarter of 2021, Target Corporation (NYSE: TGT) reported an adjusted EPS of $3.64, beating estimates by $0.11. The company’s second-quarter revenue came in at $25.16 billion, up 9.5% year-over-year and beating estimates by $127.88 million. Shares of Target Corporation (NYSE: TGT) gained 40.25% year-to-date and 62.62% in the last twelve months.
Nelson Capital Management mentioned Target Corporation (NYSE: TGT) in its Q2 2021 investor letter:
“We added Target (tkr: TGT) to our consumer staples sector. Target offers a broad array of products in owned and known brand items at affordable prices. Its omnichannel fulfillment centers allow customers to receive their items via in-store pickup, curbside pickup, same-day shipping, and regular shipping while simultaneously reducing operating costs. With a significantly lower valuation than peers and a unique operating strategy, Target is an attractive holding.”
2. The Procter & Gamble Company (NYSE: PG)
Number of Hedge Fund Holders: 68
Ranking 2nd on the list of 11 best FMCG stocks to buy now is The Procter & Gamble Company (NYSE: PG). The Ohio-based multinational consumer goods corporation was founded in 1837. The company has over 65 individual brands including Pampers, Ariel, Safeguard, Oral-B, among others.
In April 2020, The Procter & Gamble Company (NYSE: PG) expanded its Australian presence by acquiring supplement producer Voost. The Procter & Gamble Company intends to expand Voost’s range of vitamins, minerals, and supplements.
This August, Truist analyst Bill Chappell raised the price target of The Procter & Gamble Company (NYSE: PG) to $145 per share from $140 per share and kept his Hold rating on the stock, highlighting solid Q4 results and FY2022 guidance.
The company has a market cap of $350.40 billion and currently offers a dividend yield of 2.41%. In the second quarter of 2021, The Procter & Gamble Company (NYSE: PG) reported an EPS of $1.13, beating estimates by $0.04. The company’s fourth-quarter revenue came in at $18.95 billion, beating estimates of $569.63 million.
By the end of the second quarter of 2021, 68 hedge funds out of the 873 tracked by Insider Monkey held stakes in The Procter & Gamble Company (NYSE: PG) worth roughly $6.93 billion. This is compared to 70 hedge funds in the previous quarter with a total stake value of approximately $8.53 billion.
1. Walmart Inc. (NYSE: WMT)
Number of Hedge Fund Holders: 71
Topping the list of 11 best FMCG stocks to buy now is Arkansas-based retails corporation Walmart Inc. (NYSE: WMT). Walmart Inc. is one of the fastest moving consumer goods companies and operates over 10,500 stores in 24 countries.
In July, Walmart Inc. (NYSE: WMT) announced a partnership with consumer goods and supply chain robotics and automation company Symbotic.
Cowen analyst Oliver Chen recently kept an Outperform rating on Walmart Inc. (NYSE: WMT) and raised the firm’s price target to $175 per share from $170 per share.
The company has a market cap of $421.58 billion and currently offers a dividend yield of 1.46%. In the second quarter of 2021, Walmart Inc. (NYSE: WMT) reported an EPS of $1.78, beating estimates by $0.21. The company’s second-quarter revenue came in at $139.87 billion, up 2.4% year-over-year and beating estimates by $3.87 billion.
By the end of the second quarter of 2021, 71 hedge funds out of the 873 tracked by Insider Monkey held stakes in Walmart Inc. (NYSE: WMT) worth roughly $8.04 billion. This is compared to 58 hedge funds in the previous quarter with a total stake value of approximately $5.88 billion.
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