5 Best Widow and Orphan Stocks To Buy

In this article, we discuss the 5 best widow and orphan stocks to buy. To read the detailed analysis of widow and orphan stocks, go directly to the 11 Best Widow and Orphan Stocks To Buy.

5. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 65

PepsiCo, Inc. (NASDAQ:PEP) is one of the largest food and beverage companies in the world. The multinational corporation sells its products under major brands, including Pepsi, Lay’s, Quaker, Gatorade, 7UP, Doritos, Cheetos, and Ruffles.

On November 16, PepsiCo, Inc. (NASDAQ:PEP) announced a quarterly dividend of $1.265, payable by January 5 to the shareholders of record on December 1. At the time of writing on November 28, the dividend yield of the company was 2.99%.

On November 13, Jefferies analyst Kaumil Gajrawala started coverage of PepsiCo, Inc. (NASDAQ:PEP)’s stock with a Buy rating and a $203 price target. The firm called the company “the most likely [beverage name] to grow earnings high-single digits or better in the next three years.”

RiverPark Advisors commented on PepsiCo, Inc. (NASDAQ:PEP) in its third quarter 2023 investor letter. Here is what it said:

“PepsiCo, Inc. (NASDAQ:PEP): PepsiCo is a leading global beverage and snack food company with a portfolio of brands, including Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker and SodaStream. The company, through its operations, authorized bottlers, contract manufacturers and other third parties, makes, markets, distributes and sells a wide variety of beverages and snack foods, serving customers and consumers in more than 200 countries and territories.

PEP, through acquisitions, marketing, and product innovation has reinvigorated top line expansion and is now expected to grow revenues in the mid-single digit percent rate for the foreseeable future. We expect this revenue growth to drive margin expansion and free cash flow growth from $5.6 billion in 2022 to $12.3 billion in 2028. Based on this more than doubling of free cash flow and the company’s 2.8% dividend yield, we believe we can achieve double digit rates of return from the stock regardless of the economic environment ahead. We initiated a small position in August.”

4. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 72

Chevron Corporation (NYSE:CVX) is one of the direct descendants of Standard Oil. It is an integrated oil and gas company headquartered in California. Chevron Corporation (NYSE:CVX) is one of the best widow and orphan stocks to buy.

Out of 17 Wall Street analysts, 11 maintain a Buy rating on Chevron Corporation (NYSE:CVX)’s stock. The average analyst price target of $182.12 represents a 24.74% upside to its stock price at the time of writing on November 28.

Chevron Corporation (NYSE:CVX)’s stock was owned by 72 hedge funds in the third quarter of 2023. Berkshire Hathaway was the company’s most prominent hedge fund investor, with 110.248 million shares worth $18.59 billion. Chevron Corporation (NYSE:CVX) is one of the companies that Warren Buffett and analysts love.

3. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 75

The Procter & Gamble Company (NYSE:PG) is one of the best-known consumer goods multinational national corporations in the world. The company offers its products under famous brands like Olay, Always, Ariel, and others.

According to Insider Monkey’s database, 75 hedge funds held a stake in The Procter & Gamble Company (NYSE:PG)’s stock in Q3, up from 74 in the second quarter. After an increase of 106%, Ken Fisher’s Fisher Asset Management was the most significant shareholder of the company, with nearly 10 million shares worth $1.458 billion.

On November 13, Jefferies initiated coverage of The Procter & Gamble Company (NYSE:PG) with a Buy rating and a $177 price target. According to the analyst, the company will witness leading top and bottom-line growth over the coming four years.

ClearBridge Investments mentioned The Procter & Gamble Company (NYSE:PG) in its second quarter 2023 investor letter. Here is what it said:

“Reinforcing defensive exposure and pushing our consumer staples positioning from underweight to overweight the benchmark, we added The Procter & Gamble Company (NYSE:PG), a leading consumer products company with leading franchises in a variety of stable categories, including fabric care, baby, beauty and health. It is a high-quality company with a track record of superior growth, market share gains and attractive returns on capital. It also has defensive attributes when economic conditions deteriorate. Procter & Gamble is a sustainability leader with a demonstrated commitment to addressing environmental and social objectives in how it manages the business, and it has above-average corporate governance practices. Many Procter & Gamble products have a positive impact by promoting hygiene, self-care or health.”

2. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 79

Exxon Mobil Corporation (NYSE:XOM) is a Texas-based integrated oil and gas company. The company has also started major investments in the renewable energy sector, especially carbon capture and storage solutions.

Reuters reported on November 16 that Exxon Mobil Corporation (NYSE:XOM) is planning to invest up to $15 billion in a petrochemical project and carbon capture and storage facilities in Indonesia. 

In the third quarter, Exxon Mobil Corporation (NYSE:XOM)’s stock was owned by 79 hedge funds with investments worth $4.48 billion. In the previous quarter, 71 hedge funds had a stake in the company at a combined value of $3.087 billion. First Eagle Investment Management was Exxon Mobil Corporation (NYSE:XOM)’s most prominent hedge fund investor for the second quarter in a row. The firm owned 13.19 million shares of the company worth $1.55 billion.

1. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 80

Walmart Inc. (NYSE:WMT) is an Arkansas-based retail chain operator with over 10,500 stores and clubs in 19 countries and eCommerce websites.

On November 16, Walmart Inc. (NYSE:WMT) released its Q3 earnings result with a non-GAAP EPS of $1.53, surpassing the estimates by $0.01. The revenue climbed 5.2% year-over-year to $160.8 billion, topping the estimates by $2.26 billion.

Walmart Inc. (NYSE:WMT)’s stock was covered by 30 Wall Street analysts over the previous three months, and 25 kept a Buy rating on the shares. The average price target of $180.79 represents an upside of 14.20% at the time of writing on November 28.

You can also look at the 11 Stocks Under $20 To Buy Now and D.E. Shaw Stock Portfolio: 10 Top Stock Picks.

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