In this piece, we take a look at the five best sugar stocks to buy now. For more stocks, take a look at 10 Best Sugar Stocks to Buy Now.
5. Seaboard Corporation (NYSE:SEB)
Number of Hedge Fund Holders: 14
Seaboard Corporation (NYSE:SEB) is an American agricultural and transportation business. It has six operating segments, one of which is directly involved in the production and selling of sugar and power generation through sugarcane by products. The firm is headquartered in Merriam, Kansas.
Seaboard Corporation (NYSE:SEB) shares have withstood the storm that caused the S&P 500 to tank by 15.2% year to date, as during the same time period, the company’s shares have dropped by only 3.36%. Additionally, its operating income and net income grew strongly during its fiscal year 2021, marking annual growths of $219 million and $287 million, respectively. Compared to its peers, Seaboard Corporation (NYSE:SEB)’s price to earnings ratio of 10, price to operating cash flow ratio of 7.3, and enterprise value to EBITDA ratio of 7.4 make it one of the cheapest stocks among its peers.
Insider Monkey’s Q2 2022 survey of 895 hedge funds revealed that 14 had held the company’s shares.
Out of these, Irving Kahn’s Kahn Brothers is Seaboard Corporation (NYSE:SEB)’s largest investor. It owns 9,908 shares that are worth $38 million.
4. Archer-Daniels-Midland Company (NYSE:ADM)
Number of Hedge Fund Holders: 42
Archer-Daniels-Midland Company (NYSE:ADM) is an American company that procures, transforms, and sells agricultural raw materials. The firm also supplies starch, syrup, glucose, and other food ingredients. It is headquartered in Chicago, Illinois.
Archer-Daniels-Midland Company (NYSE:ADM)’s shares have grown by a remarkable 49% over the course of the past 12 months, as sentiment around the stock turns bullish. This has been aided by stellar performance, which saw the firm beat its earnings estimate for its second fiscal quarter by a whopping 25% in July 2022. Archer-Daniels-Midland Company (NYSE:ADM) also pays a 40 cent dividend for a 1.75% yield.
Wolfe Research set a $117 share price target for Archer-Daniels-Midland Company (NYSE:ADM) in August 2022, citing confidence in the firm’s dividend growth. 42 out of the 895 hedge funds polled by Insider Monkey for their June quarter of 2022 holdings had bought the company’s shares.
Archer-Daniels-Midland Company (NYSE:ADM)’s largest shareholder is Tom Gayner’s Markel Gayner Asset Management which owns 1.4 million shares that are worth $113 million.
3. The Hershey Company (NYSE:HSY)
Number of Hedge Fund Holders: 43
The Hershey Company (NYSE:HSY) is one of the oldest confectionary companies in the world and is headquartered in its namesake Hershey, Pennsylvania. The firm makes and sells chocolates, mints, bubble gums, syrups, and other items.
The Hershey Company (NYSE:HSY) is also one of the largest confectionary companies in the world, as it owns more than 100 brands and operates in close to 80 countries. Over the past ten years, the firm’s earnings per share have grown at a CAGR of 9.8%, which surpasses its own goal of 6%-8% EPS growth annually. It is also succeeding in emerging economies, thought by many to be the next growth pivot for its industry, and reported market shares of 39% in Mexico and 23.9% in India as of the latest figures. The Hershey Company (NYSE:HSY) is also a strong dividend stock, with 12 years of consistent dividend growth.
As of June 2022, out of the 895 hedge funds polled by Insider Monkey, 43 had held a stake in The Hershey Company (NYSE:HSY). Deutsche Bank raised its price target to $227 from $219 in July 2022 following the company’s earnings report.
Jim Simons’s Renaissance Technologies is The Hershey Company (NYSE:HSY)’s largest investor in our database. It owns 3.6 million shares that are worth $789 million.
2. Bunge Limited (NYSE:BG)
Number of Hedge Fund Holders: 48
Bunge Limited (NYSE:BG) is one of the oldest agri-business in the world, as it was founded in 1818 and is currently headquartered in St. Louis, Missouri, the United States. The company’s Sugar and Bioenergy segment is responsible for producing sugar and ethanol, alongside generating electricity from sugarcane.
Bunge Limited (NYSE:BG) has a Brazilian joint venture responsible for 32 million metric tons of sugar cane annually for use in ethanol that is estimated to be worth $1.96 billion in assets according to JP Morgan. Even if the firm does not sell its stake in the unit, the JV provides it with strong exposure to the Brazilian sugar cane and ethanol market and also opens to door for a significant cash infusion should an outside investor decides to buy the facilities. Bunge Limited (NYSE:BG) also pays a 62 cent dividend for a 2.58% yield.
48 out of the 895 hedge funds surveyed by Insider Monkey for their second quarter of 2022 holdings had held a stake in Bunge Limited (NYSE:BG). Wolfe Research set a $127 price target for the company in August 2022, highlighting that commodity prices and a strong cash flow yield will benefit the firm.
Bunge Limited (NYSE:BG)’s largest investor is Israel Englander’s Millennium Management which owns 1.9 million shares that are worth $176 million.
Old West Investment Management mentioned the company in its Q1 2022 investor letter. Here is what the fund said:
“Bunge (pronounced BUN-GEE) Ltd (NYSE:BG) is one of the biggest agribusinesses and food companies in the world. There are four worldwide companies that dominate the sector, the others being Archer-Daniels-Midland Cargill, and Dreyfuss. One of our favorite ways to screen for new ideas is following insider buying. When I saw the Form 4 filed by new Bunge CEO Greg Heckman, his purchase of $9 million of BG stock intrigued me. My initial thought was the company gave him the stock as a signing bonus. I contacted BG Investor Relations and asked whether it was a signing bonus or did Heckman actually write a check for $9 million. IR assured me it was his own hard-earned money that he invested in the company he was about to run.
Heckman was a long time executive at Conagra Foods who obviously sensed opportunity at BG. One of his first moves as CEO was to move the company’s HQ from New York to St. Louis, right in the middle of America’s breadbasket. BG had been plagued for years with poor decisions by underperforming management. Heckman’s decision to move to St. Louis was indicative of a no-nonsense style and he would commence cutting expenses and selling non-core assets…” (Click here to see the full text)
1. Mondelez International, Inc. (NASDAQ:MDLZ)
Number of Hedge Fund Holders: 48
Mondelez International, Inc. (NASDAQ:MDLZ) is a food and beverage products company that operates in the Americas, Middle East, Africa, and Europe. It provides a wide variety of products such as chocolates, biscuits, gums, cookies, and powdered beverages. The firm is headquartered in Chicago, Illinois, the United States.
Mondelez International, Inc. (NASDAQ:MDLZ) is one of the most diversified foods and beverages companies out there, with no region accounting for more than 40% of its sales. This bodes it well during economic uncertainty, as a single region (such as Europe’s) woes do not carry the risk of jeopardizing the company’s financial performance. Its revenues have grown in line with GDP growth during 2018 and 2021, and a rate of return of 8% along with a terminal growth rate of 3% results in a fair value of $67.95 per share – for an upside over the current share price of $61.9. Mondelez International, Inc. (NASDAQ:MDLZ) also pays a 39 cent dividend for a 2.49% yield.
Deutsche Bank raised Mondelez International, Inc. (NASDAQ:MDLZ)’s share price target to $72 from $70 in July 2022 and kept a Buy rating on the shares. 48 of the 895 hedge funds polled by Insider Monkey for their Q2 2022 holdings had held a stake in the company.
Mondelez International, Inc. (NASDAQ:MDLZ)’s largest investor is John Overdeck and David Siegel’s Two Sigma Advisors which owns 4.5 million shares that are worth $279 million.
Disclosure: None. You can also take a look at 10 Best Long-Term Stocks to Buy Now and Top 10 Technology Stocks to Buy According to Billionaire Cliff Asness.
