5 Best Food Stocks to Buy Now

1. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Shareholders: 68

Topping the list beverage and snack giant PepsiCo, Inc. (NASDAQ:PEP), which distributes an impressive list of brands globally, including its eponymous soft drink, Doritos, Cracker Jack, Lay’s, Quaker, Pearl Milling Company (formerly Aunt Jemima), Smartfood, Cap’n Crunch, and Cheetos.

Pepsi’s Quaker Foods and Frito Lay brands have been a strong driver of growth, driving year-to-date North American sales up by 14% through July, while Latin American sales jumped by 21%. Yet while Pepsi has performed well during the pandemic and is often seen as recession proof, the company is nonetheless mulling layoffs to cut costs according to Fox Business’ Charles Gasparino. Pepsi became a dividend king this year, with its shares yielding 2.82%.

PepsiCo, Inc. (NASDAQ:PEP) tied an all-time high in ownership among hedge funds at the end of Q2, with 68 long PEP, up from 54 two years earlier. Donald Yacktman, Terry Smith, and Ray Dalio’s funds all have greater than $600 million positions in Pepsi.

The ClearBridge Large Cap Value ESG Fund discussed some of the positive traits from PepsiCo, Inc. (NYSE:PEP)’s first quarter results in its Q2 2022 investor letter:

“Also in the stable and predictable cash flow camp, though with a very different business model, global food and beverage company PepsiCo (NYSE:PEP) reported very strong organic growth in the first quarter, driven by healthy price/mix, and raised revenue guidance, while holding EPS guidance. Notably, its beverage business showed expanding margins.”

For more of the latest stock picks worth considering for your portfolio, check out the 15 Best Gambling Stocks To Buy and the Best Stocks For Dividends.

Disclosure: None.

Follow Insider Monkey on Twitter