In this article, we discuss the 5 best sugar stocks to buy now. If you want to read our detailed analysis of the sugar stocks and the sugar industry, go directly to the Best Sugar Stocks to Buy Now.
5. Whole Earth Brands, Inc. (NASDAQ: FREE)
Number of Hedge Fund Holders: 18
Whole Earth Brands, Inc. (NASDAQ: FREE) is an American food company that produces high-quality plant-based sweeteners and flavor enhancers. The company’s products include sugar, agave nectar, allulose, and other liquid sweetener products. Whole Earth Brands, Inc. (NASDAQ: FREE) has the largest distribution network in the world, providing plant-based sweeteners in over 100 countries. It ranks fifth on our list of the best sugar stocks to buy now.
In December 2020, Whole Earth Brands, Inc. (NASDAQ: FREE) marked a deal to acquire WSO Investments, the holding company for Wholesome Sweeteners Incorporated. In Q2 2021, Whole Earth Brands, Inc. (NASDAQ: FREE) posted revenue of $126 million, showcasing an 89% year-over-year growth, and beating the estimates by $4.09 million. In July, Canaccord initiated its coverage on Whole Earth Brands, Inc. (NASDAQ: FREE) with a ‘Buy’ rating and a $20 price target due to the exponential growth in the global market of sugar alternatives.
As of Q2 2021, 18 hedge funds tracked by Insider Monkey have positions in Whole Earth Brands, Inc. (NASDAQ: FREE), valued at $105.5 million.
Maran Capital Management released its second-quarter 2021 investor letter and mentioned Whole Earth Brands, Inc. (NASDAQ: FREE) in it. Here is what the firm has to say:
“We continue to hold core positions in previously disclosed companies (including) Whole Earth Brands (FREE). Each are asset-light, branded, buy-and-build growth companies operating in various areas of the consumer sector. Branded packaged food company Whole Earth Brands, at ~8x 2022 EBITDA, has better organic growth, margins, and returns on capital than many consumer food companies trading at almost twice its multiple. As investors look forward to cleaner 2022 results (pro forma for two acquisitions), I believe there is meaningful room for the company to re-rate.”
4. Ingredion Incorporated (NYSE: INGR)
Number of Hedge Fund Holders: 21
Ingredion Incorporated (NYSE: INGR) stands fourth on our list of the best sugar stocks to buy now. It is an American ingredient provider which manufactures modified starches and starch sugars, such as glucose syrup and high fructose syrup. Along with this, the company also produces in-demand sweeteners, high potency sweeteners, and alternative sweeteners. The sweeteners produced by Ingredion Incorporated (NYSE: INGR) complies with its comprehensive sugar-reduction portfolio, made to cater to health-conscious consumers.
In Q2 2021, Ingredion Incorporated (NYSE: INGR) reported an EPS of $2.05, beating the consensus by $0.46. The revenue for the quarter stood at $1.76 billion, up 30.4% from the prior-year quarter. In May, Ingredion Incorporated (NYSE: INGR) signed an agreement with Amyris, Inc. (NASDAQ: AMRS) for producing zero-calorie and nature-based sweeteners. In FY21, Ingredion Incorporated (NYSE: INGR) expects adjusted EPS in the range of $6.45-$6.85 versus the estimates of $6.58. In May, Stephens rated Ingredion Incorporated (NYSE: INGR) as ‘Equal Weight’, with a $100 price target.
Of the 873 hedge funds tracked by Insider Monkey, 21 hedge funds have positions in Ingredion Incorporated (NYSE: INGR), worth $383.5 million. Yacktman Asset Management is the company’s largest shareholder with 2.6 million shares, worth $238 million.
3. The Hershey Company (NYSE: HSY)
Number of Hedge Fund Holders: 38
The Hershey Company (NYSE: HSY) is an American manufacturer of food products, especially chocolate and sugar-based confections. The company’s sugar cane supply is sourced from the U.S., Mexico, and Brazil and the sugar beet supply comes from the U.S. In 2020, The Hershey Company (NYSE: HSY) achieved its objective of sourcing 100% sugar from sustainable sources. The company ranks third on our list of the best sugar stocks to buy now.
In Q2 2021, The Hershey Company (NYSE: HSY) posted an EPS of $1.47, beating the consensus by $0.04. The revenue of $1.99 billion is up by 16.4% during the same period last year. On July 29, the company’s board increased the quarterly dividend by 12% at $0.901 per share. Recently, BMO Capital lifted its price target on The Hershey Company (NYSE: HSY) to $181, with an ‘Outperform’ rating on the shares. The firm’s analyst appreciated the company’s solid growth in all segments of confection and improvement in its away-from-home products.
As of Q2 2021, 38 hedge funds tracked by Insider Monkey have positions in The Hershey Company (NYSE: HSY), worth over $1.2 billion. Jim Simons’ Renaissance Technologies is the company’s leading shareholder, with shares worth $556 million.
2. Bunge Limited (NYSE: BG)
Number of Hedge Fund Holders: 40
Bunge Limited (NYSE: BG) is an American agribusiness and food company that is involved in food processing, grain trading, and fertilizers. In 2019, the company formed an agreement with a British oil and gas company, BP p.l.c (NYSE: BP) to produce low carbon ethanol and sugar. The joint venture, BP Bunge Bioenergia, has an annual crushing capacity of 32 million tons of sugarcane. It stands second on our list of the best sugar stocks to buy now.
In Q2 2021, Bunge Limited (NYSE: BG) posted an EPS of $2.61, beating the consensus by $0.99. The consolidated revenue stood at $15.3 billion, up 62.7% from the prior-year quarter. The sugar and bioenergy segment accounted for $68 million of the gross revenue. On August 5, Bunge Limited (NYSE: BG) declared a quarterly dividend of $0.525 per share. In May, Morgan Stanley lifted its price target on Bunge Limited (NYSE: BG) to $92, with an ‘Equal Weight’ rating on the shares.
As of Q2 2021, 40 hedge funds tracked by Insider Monkey have positions in Bunge Limited (NYSE: BG), worth $399.2 million.
1. Archer-Daniels-Midland Company (NYSE: ADM)
Number of Hedge Fund Holders: 41
Archer-Daniels-Midland Company (NYSE: ADM) tops our list of the best sugar stocks to buy now. It is an American food processing company and a global producer of renewable chemicals. The company’s products include granulated sugar, liquid sucrose, and invert sugar sourced from cane or beet. Along with this, Archer-Daniels-Midland Company (NYSE: ADM) also produces fruit-based sweeteners with a low glycaemic response.
In Q2 2021, Archer-Daniels-Midland Company (NYSE: ADM) posted an EPS of $1.33, beating the market consensus by $0.30. The revenue presented a 40.8% year-over-year growth at $22.9 billion. The sweetener segment accounted for $2.8 billion of the gross revenue. In May, Morgan Stanley lifted its price target on Archer-Daniels-Midland Company (NYSE: ADM) to $67, with an ‘Equal Weight’ rating on the shares. On August 4, the company’s board declared a quarterly dividend of $0.37 per share.
Of the 873 hedge funds tracked by Insider Monkey, 41 hedge funds have positions in Archer-Daniels-Midland Company (NYSE: ADM), up from 34 in the previous quarter. The total value of these stakes is $837.7 million.
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