In this article we will take a look at the 5 best future food stocks to invest in today. For a detailed analysis of these companies, go directly to the 10 Best Future Food Stocks to Invest in Today.
5. Walmart Inc. (NYSE: WMT)
Number of Hedge Fund Holders: 70
Walmart Inc. (NYSE: WMT) is a Bentonville-based retail brand. It is one of the largest retailers in the United States and operates through hypermarkets, discount department stores, and grocery stores. The stores of the firm sell dry grocery, snacks, dairy, meat produce, deli and bakery, frozen foods, as well as alcoholic and nonalcoholic beverages. The firm was founded in 1945 and is placed fifth on our list of 10 best future food stocks to invest in today. The firm operates more than 11,000 stores and numerous e-commerce websites as well.
On April 30, Walmart Inc. (NYSE: WMT) was identified by Bank of America as one of the companies that would gain from an increase in spending on grocery at local stores and on the internet as stimulus cheques issued by the US government to provide COVID-19 relief were issued to the public. The bank said Walmart had better pricing disciplines than competitors and stood to benefit from it through the economic recovery as the pandemic subsided.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in the firm with 11.8 million shares worth more than $1.7 billion.
4. Amazon.com, Inc. (NASDAQ: AMZN)
Number of Hedge Fund Holders: 273
Amazon.com, Inc. (NASDAQ: AMZN) is a Bellevue-based technology firm that has diversified business to own significant stakes in the publishing and food industries. With the e-commerce business of the firm booming during the pandemic, Amazon has been quietly opening up smart food stores around the US. In 2017, the firm had purchased Whole Foods for $13.7 billion, forcing grocery and retail brands to pay attention to online parts of their business, and establishing itself as a major player in the market in the process.
Amazon.com, Inc. (NASDAQ: AMZN) stock has been rallying in recent days as rumors about a possible stock split dominate the market. The firm has also been fighting controversies related to worker conditions and has announced that it will increase the salary of more than 500,000 US-based workers by $0.5 to $3.
At the end of the fourth quarter of 2020, 273 hedge funds in the database of Insider Monkey held stakes worth $51 billion in the firm, up from 245 in the preceding quarter worth $43 billion.
Alger Spectra Fund, in their Q1 2021 investor letter, mentioned Jeffrey Bezos‘ Amazon.com, Inc. (NASDAQ: AMZN). Here is what Alger Spectra Fund has to say about Amazon.com, Inc. in their Q1 2021 investor letter:
“Long position Amazon.com, Inc. was among the top detractors from performance. Amazon continued to generate strong high unit volume growth by taking market share from brick and mortar retailing. In the recent quarter, retail sales surprised notably on the upside as coronavirus has accelerated the adoption of e-commerce. Some of these shoppers will remain loyal beyond the end of social distancing further pushing the permanent market share gain of e-commerce at the expense of brick and mortar. Amazon.com’s guidance includes a modest deceleration in the retail sales growth but at still strong levels in the upcoming quarter. The same accelerated trend in adoption was also seen at Amazon’s AWS as corporate America embraced cloud offerings in the new distributed workforce environment although profitability in this segment fell short of expectations due to Amazon.com investing ingrowth initiatives.
Despite the continuing gains in these large addressable markets, Amazon’s share price detracted from performance as investors wait to see how the significant 2020 growth comparisons generated during the economic shutdown affect Amazon’s reported growth rates in 2021. Meanwhile, value versus growth equity returns in recent months indicate that investors possibly prefer to chase the transitory performance associated with pure play beneficiaries of economic re-openings while eschewing the potential compounding benefits garnered from high-quality, long-duration innovation led growers like Amazon.”
3. Hormel Foods Corporation (NYSE: HRL)
Number of Hedge Fund Holders: 31
Hormel Foods Corporation (NYSE: HRL) is a Minnesota-based food company that makes and sells several meat-related and other food products. It has separate wings dedicated to making grocery products and refrigerated foods. The firm was founded in 1891 and is ranked third on our list of 10 best future food stocks to invest in today. Some of the items sold by the company include sausages, hams, canned luncheon meats, peanut butters, chilies, shelf-stable microwaveable meals, salsas, tortilla chips, and others.
Hormel Foods Corporation (NYSE: HRL) announced back in February that it had made a deal with rival Kraft for the purchase of nuts brand Planters for more than $3 billion. The deal will likely provide the firm with tax benefits totaling $560 million. The Planters made sales worth more than $1 billion in 2020 and is expected to grow further under new owners.
Out of the hedge funds being tracked by Insider Monkey, Greenwich-based investment firm AQR Capital Management is a leading shareholder in the firm with 3.7 million shares worth more than $172 million.
2. The Kraft Heinz Company (NASDAQ: KHC)
Number of Hedge Fund Holders: 36
The Kraft Heinz Company (NASDAQ: KHC) is a Chicago-based food firm. Some of the products that the company makes and sells include condiments and sauces, cheese and dairy, meals, meats and seafood, frozen and chilled foods, packaged drinking pouches, appetizers, nuts and salted snacks, and others. It offers these under brand names such as Kraft, Oscar Mayer, Heinz, Philadelphia, Velveeta, among others. The company was founded in 1869 and is placed second on our list of 10 best future food stocks to invest in today.
The Kraft Heinz Company (NASDAQ: KHC) reported quarterly earnings on April 29 and posted organic sales growth of 2.5%, beating market estimates by 0.6%. The company forecast a single digit percentage increase in organic sales for the second quarter of the year and said it was confident of beating targets set in a strategic annual plan.
At the end of the fourth quarter of 2020, 36 hedge funds in the database of Insider Monkey held stakes worth $11 billion in the firm, down from 39 in the preceding quarter worth $10 billion.
1. Beyond Meat, Inc. (NASDAQ: BYND)
Number of Hedge Fund Holders: 27
Beyond Meat, Inc. (NASDAQ: BYND) is a Los Angeles-based company that makes plant-based meat alternatives. It was founded in 2009 and is placed first on our list of 10 best future food stocks to invest in today. The firm offers plant-based substitutes for beef, meatballs, ground meat, pork sausage links and patties, among others. The firm uses grocers, mass merchandisers, clubs, convenience stores, restaurants, and a website to market products to tens of different states in the United States.
On April 22, investment advisory BTIG said that Beyond Meat, Inc. (NASDAQ: BYND) investors needed to be patient to see the benefits that the meat substitute brand would gain from partnerships with fast food giants like McDonald’s and Yum Brands. The advisory maintained a Neutral rating on Beyond Meat stock till the firm reported quarterly results in May.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in the firm with 1.3 million shares worth more than $162 million.
You can also take a peek at 10 Best Travel Stocks to Buy Right Now, and 10 Best Automotive Stocks to Invest in Now.
