5 Best Vegan Stocks to Buy Now

In this article, we discuss 5 best vegan stocks to buy. If you want to read our detailed discussion on the vegan industry, head over to 11 Best Vegan Stocks to Buy Now.

5. Beyond Meat, Inc. (NASDAQ:BYND)

Number of Hedge Fund Holders: 15

Beyond Meat, Inc. (NASDAQ:BYND), recognized as one of the best vegan stocks, develops, produces, promotes, and sells plant-based meat products in the United States and around the world. The company provides different plant-based meat products, including beef, poultry, and pork. Beyond Meat, Inc. (NASDAQ:BYND) distributes its products through grocery stores, large retailers, clubs, convenience stores, and food-service outlets like restaurants and schools. On August 7, Beyond Meat, Inc. (NASDAQ:BYND) announced a Q2 GAAP EPS of -$0.83, outperforming market consensus by $0.01. However, the revenue of $102.15 million fell short of Street estimates by $7.04 million.

According to Insider Monkey’s second quarter database, 15 hedge funds were bullish on Beyond Meat, Inc. (NASDAQ:BYND), same as the previous quarter.

Here is what Horos Asset Management has to say about Beyond Meat, Inc. (NASDAQ:BYND) in its Q1 2022 investor letter:

“What about the other asset class that has attracted the most attention from the investment community in recent times? Beyond Meat is the other company whose valuations we did not understand and whose share price has also declined drastically in the last year and a half.”

4. MGP Ingredients, Inc. (NASDAQ:MGPI)

Number of Hedge Fund Holders: 17

MGP Ingredients, Inc. (NASDAQ:MGPI) produces and provides distilled drinks, branded spirits, and food ingredients in the United States and globally. It works in three segments – Distillery Solutions, Branded Spirits, and Ingredient Solutions. The company sells its products either directly or through distributors, serving manufacturers, processors of finished products, and even bakeries. MGP Ingredients, Inc. (NASDAQ:MGPI) is one of the best vegan stocks to buy. On August 3, MGP Ingredients, Inc. (NASDAQ:MGPI) reported a Q2 non-GAAP EPS of $1.49 and a revenue of $209 million, exceeding Wall Street estimates by $0.24 and $3.73 million, respectively.

According to Insider Monkey’s second quarter database, 17 hedge funds were bullish on MGP Ingredients, Inc. (NASDAQ:MGPI), in contrast to the preceding quarter when 25 funds had invested in the stock. Richard Driehaus’ Driehaus Capital held a significant position in the company, comprising 188,088 shares valued at $19.99 million.

SouthernSun SMID Cap Strategy made the following comment about MGP Ingredients, Inc. (NASDAQ:MGPI) in its second quarter 2023 investor letter:

“We initiated a position in MGP Ingredients, Inc. (NASDAQ:MGPI) in April of 2023. MGPI is a leading supplier of premium distilled spirits and specialty wheat starches and proteins in the U.S. MGPI operates through three distinct segments, each of which has attractive opportunities for growth. Through its distilling solutions segment, MGPI is a leading supplier of distilled spirits, facilitating the creation of bourbons, rye whiskeys, American single malt whiskey, distilled gins and vodkas. U.S. spirits have gained a significant share of total beverage alcohol over the last decade on a revenue basis, and American whiskey volumes, in particular, have experienced strong growth, driven in part by the growth of craft brands. In our opinion, these trends in consumption habits tend to be generational, which suggests that this recent demand strength is sustainable. MGPI maintains a large inventory of distilled spirits of various ages, which is used to produce its own branded spirits and sold to both multinational and craft producers of branded spirits. The time and capital required to age new distillate is significant, and that capital is often better used in marketing new brands, and MGPI is in a unique position to serve this market. As of the end of the first quarter of 2023, the vast majority of MGPI’s new distillate capacity was contracted for both this year and next as well as the majority of its aged distillate for this year.

In addition to its distillation capabilities, MGPI also develops its own branded spirits, and the branded spirits segment provides a platform for both organic and acquisitive growth opportunities. Building individual spirits brands can be challenging, in part due to the three-tier distribution system in the U.S., which requires individual brands to comply with various state laws and state-licensed distributors. In 2021, MGPI acquired Luxco, Inc., which significantly expanded its portfolio of branded spirits and brought with it distribution capabilities across all 50 states. Since acquiring Luxco, MGPI has continued to expand its distilling capacity and increase sales of its premium, super premium and ultra premium brands, which generate higher gross margins than other portfolio brands. In June of 2023, MGPI announced the acquisition of Penelope Bourbon, adding a popular, growing bourbon brand to the portfolio. This transaction is the first tangible example of how we believe management will leverage its national distribution platform and existing distillation capacity to bring other brands into the fold. We expect acquisitions like this one to be a key element of the future value creation opportunity…”

3. Olaplex Holdings, Inc. (NASDAQ:OLPX)

Number of Hedge Fund Holders: 18

Coming up next among the best vegan stocks is Olaplex Holdings, Inc. (NASDAQ:OLPX). It creates, manufactures, and sells entirely vegan products for hair care. They offer shampoos, conditioners, and nourishing hair serums that help treat, maintain, and protect hair. These products are used by both professional hair salons and regular consumers. On August 8, Olaplex Holdings, Inc. (NASDAQ:OLPX) announced a Q2 non-GAAP EPS of $0.03 and a revenue of $109.24 million, falling short of estimates by $0.02 and $20.56 million, respectively. However, it remains a popular vegan stock among smart investors. 

According to Insider Monkey’s second quarter database, 18 hedge funds were bullish on Olaplex Holdings, Inc. (NASDAQ:OLPX). This number increased from the last quarter when 15 funds had invested in the stock. Cliff Asness’ AQR Capital Management is the largest stakeholder of the company, with 5.3 million shares worth $19.78 million.

Polen U.S. Small Company made the following comment about Olaplex Holdings, Inc. (NASDAQ:OLPX) in its Q1 2023 investor letter:

“We exited three positions during the quarter: Duck Creek Technologies, Azenta, and Olaplex Holdings, Inc. (NASDAQ:OLPX). We believe Olaplex highlights our willingness to change our mind when information changes, even with a new position. Olaplex is a highly profitable and uniquely positioned prestige beauty brand focused on science-based hair care. When we first invested in Olaplex in the fourth quarter of last year, it was on the back of the stock re-rating lower as revenue growth decelerated from rapid growth to a more sustainable growth rate. We felt this re-rating represented a significant discount on the stock’s long-term potential. In the short time since we became owners, a tail risk emerged related to a claim that the products cause hair loss and damage. At worst, this presents an existential threat to the business and, in the best-case scenario, makes everything that they are trying to do today a lot harder. No longer comfortable with the significantly widened range of potential outcomes, we eliminated the position as we have investment alternatives of equal or better reward today with meaningfully less risk. While it is unusual for us to exit positions so quickly, sometimes this is necessary. Not only is it important to be open to changing one’s mind quickly as new risks emerge—it is essential to protecting and preserving our clients’ capital.”

2. Tyson Foods, Inc. (NYSE:TSN)

Number of Hedge Fund Holders: 31

Tyson Foods, Inc. (NYSE:TSN) functions as a global food company. It is organized into four segments – Beef, Pork, Chicken, and Prepared Foods. It ranks among the best vegan stocks as it provides a range of plant-based meat products including burger patties, sausages, ground meat, and bratwurst. The company’s products are sold by their sales teams to grocery retailers, wholesalers, meat distributors, warehouse clubs, military commissaries, food processors, chain restaurants, and their distributors, among others. 

On August 17, Tyson Foods, Inc. (NYSE:TSN) announced its plan to sell its China poultry business. Private equity firms are being considered as potential buyers for the China poultry business. This segment generates approximately $1.1 billion in annual sales. However, the specific value of the business has not yet been determined, as discussions are still at an early stage.

According to Insider Monkey’s second quarter database, 31 hedge funds were bullish on Tyson Foods, Inc. (NYSE:TSN), compared to 38 funds in the last quarter. Donald Yacktman’s Yacktman Asset Management is the largest stakeholder of the company, with approximately 3.1 million shares worth $156.4 million.

Artisan Value Income Fund made the following comment about Tyson Foods, Inc. (NYSE:TSN) in its Q4 2022 investor letter:

“Our weakest contributors were Philips, Tyson Foods, Inc. (NYSE:TSN) and already-discussed Blackstone. The largest food processor in North America, Tyson Foods is a marketer and distributor of chicken, beef, pork and prepared foods. Top-line growth has remained strong, but margins have been volatile. The margin issues have been primarily in its chicken and prepared foods businesses as beef margins have benefited from ample cattle supply, global export demand and high US domestic retail prices. In the other segments, inflationary pressures have ranged from higher raw material costs to supply chain constraints and labor availability issues. Some of these factors are out of its control, but the company is making efforts to increase labor availability and shift contract terms toward variable price models that could repair margins more quickly. The business has improved over time—the company has spent years moving away from commodity processing toward a greater mix of higher margin branded products and packaging. This has contributed to solid return on invested capital and free cash flow generation. Additionally, revenue growth has benefited from a natural long-term health and wellness tailwind of protein demand rising in the US and globally as diets improve by replacing processed foods with healthier alternatives like protein.”

1. e.l.f. Beauty, Inc. (NYSE:ELF)

Number of Hedge Fund Holders: 31

e.l.f. Beauty, Inc. (NYSE:ELF) offers a range of entirely vegan makeup and skincare items through brands like e.l.f. Cosmetics, e.l.f. Skin, Well People, and Keys Soulcare. Their product lineup includes products for eyes, lips, face, and skincare. They sell these products through different channels, including well-known retailers and online platforms, both in the United States and internationally. On August 1, e.l.f. Beauty, Inc. (NYSE:ELF) reported its financial results for the three months ended June 30, 2023. The company disclosed a GAAP EPS of $0.93 and a revenue of $216.3 million, outperforming Wall Street estimates by $0.45 and $31.77 million, respectively. e.l.f. Beauty, Inc. (NYSE:ELF) ranks 1st on our list of the best vegan stocks to buy.

According to Insider Monkey’s second quarter database, 31 hedge funds were bullish on e.l.f. Beauty, Inc. (NYSE:ELF), compared to the previous quarter when 30 funds had invested in the stock. Richard Driehaus’ Driehaus Capital held the largest position in the company, with 891,025 shares worth $101.8 million.

Diamond Hill Long-Short Fund made the following comment about E.l.f. Beauty, Inc. (NYSE:ELF) in its Q4 2022 investor letter:

“New positions initiated in Q4 included shorts International Business Machines (IBM), Acushnet Holdings (GOLF) and E.l.f. Beauty, Inc. (NYSE:ELF). Shares of value-oriented beauty brand ELF received a meaningful boost from normalizing beauty usage and spending in a post-COVID environment, which we believe has contributed to its premium multiple relative to competitors in the beauty space. As this temporary lift unwinds, we expect elf’s valuation to similarly return to a level better aligned with its product offerings.”

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