5 Best Sugar Stocks to Buy Now

1. PepsiCo Inc. (NYSE:PEP)

Hedge Fund Holdings: 72

PepsiCo Inc. (NYSE:PEP) is an American multinational food, snack and beverage company which is based out of Harrison, New York. The company is one of the biggest beneficiaries of tailwinds in the sugar industry, as it is the primary manufacturer and distributor of high-sugar products like Pepsi, Mountain Dew, Gatorade, and 7UP.

On December 7, Argus analyst John Staszak raised the price target on PepsiCo Inc. (NYSE:PEP) to $206 from $195, maintaining a Buy rating on the shares. According to the analyst, the company’s fundamentals seem solid, it is well-managed, offers a valuable and profitable brand portfolio, and continues to generate solid growth amid a weakening demand for many consumer staples. Staszak adds that he expects that the company’s significant cutting of cost will highly benefit earnings, with PepsiCo Inc. (NYSE:PEP) projected to achieve its goal of $1 billion in annual cost savings in 2022. Hedge fund sentiment around PepsiCo Inc. (NYSE:PEP) increased in Q3 2022, with 72 funds long the stock, up from 65 in the preceding quarter.

Here is what ClearBridge Investments had to say about PepsiCo Inc. (NYSE:PEP) in their 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.”

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