In this article we discuss the 5 best wine stocks to buy now. If you want to read our detailed analysis of these companies, go directly to 11 Best Wine Stocks to Buy Now.
5. The Duckhorn Portfolio, Inc. (NYSE:NAPA)
Number of Hedge Fund Holders: 16
The Duckhorn Portfolio, Inc. (NYSE:NAPA) produces and sells wines in North America. In late November, The Duckhorn Portfolio, Inc. (NYSE:NAPA) announced that it would be purchasing Sonoma-Cutrer Vineyards from wine firm Brown-Forman in a deal worth $400 million. The company said it estimated annual run-rate synergies of $5 million, which are expected to be realized in full starting fiscal year 2025.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Select Equity Group is a leading shareholder in The Duckhorn Portfolio, Inc. (NYSE:NAPA) with 7.2 million shares worth more than $73 million.
4. MGP Ingredients, Inc. (NASDAQ:MGPI)
Number of Hedge Fund Holders: 19
MGP Ingredients, Inc. (NASDAQ: MGPI) is a Kansas-based firm that markets distilled spirits. At the end of the third quarter of 2023, 19 hedge funds in the database of Insider Monkey held stakes worth $85 million in MGP Ingredients, Inc. (NASDAQ: MGPI), compared to 17 in the preceding quarter worth $71 million.
3. Diageo plc (NYSE:DEO)
Number of Hedge Fund Holders: 30
Diageo plc (NYSE:DEO) produces, markets, and sells alcoholic beverages. Latest media reports indicate that Diageo plc. (NYSE:DEO) is exploring the possible sale of a number of beer brands it owns, including popular ones like Smithwick’s, Kilkenny, Harp Lager, and Tusker. Weaker Caribbean and Latin American sales have forced the firm to trim guidance numbers as the region is expected to witness a 20% decrease in organic sales.
At the end of the third quarter of 2023, 30 hedge funds in the database of Insider Monkey held stakes worth $411 million in Diageo plc (NYSE:DEO), compared to 25 the preceding quarter worth $428 million.
In its Q4 2023 investor letter, Fiduciary Management, an asset management firm, highlighted a few stocks and Diageo plc (NYSE:DEO) was one of them. Here is what the fund said:
“Diageo plc (NYSE:DEO) is the #1 player in the large and attractive global spirits industry, with #1 positions in Scotch, Tequila, Gin, Vodka, and Rum. Total Beverage Alcohol (TBA) is a $950+ billion market, with Diageo at 4.7% of TBA, and aspiring to 6% by 2030. Premiumization in spirits is value creating, and Diageo owns 9 of the top 30 global brands, including Johnnie Walker, Tanqueray, Smirnoff, and Guinness. 12 of Diageo’s top brands are over 140 years old. The company has strong exposure to growth in emerging markets (38% of sales) and has proven to be a superior brand builder. The Diageo portfolio has been optimized, with limited reliance on M&A over the last decade. Capital allocation has been shareholder friendly. Following a period of post-COVID inventory destocking, Diageo trades at its lowest valuation in 10 years.”
2. Brown-Forman Corporation (NYSE:BF-B)
Number of Hedge Fund Holders: 36
Brown-Forman Corporation (NYSE:BF-B) manufactures, distills, bottles, imports, exports, markets, and sells various alcoholic beverages. In early December, Brown-Forman Corp (NYSE:BF-B) posted earnings for the second fiscal quarter, reporting earnings per share of $0.50, in line with market expectations. The revenue over the period was $1.1 billion, up slightly compared to the revenue over the same period in the preceding year.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Fundsmith LLP is a leading shareholder in Brown-Forman Corporation (NYSE:BF-B) with 12 million shares worth more than $697 million.
1. Constellation Brands, Inc. (NYSE:STZ)
Number of Hedge Fund Holders: 50
Constellation Brands, Inc. (NYSE:STZ) is a New York-based firm which markets several alcoholic products such as beer, wine, and spirits. On January 8, Truist analyst William Chappell maintained a Hold rating on Constellation Brands, Inc. (NYSE:STZ) stock and lowered the price target to $250 from $260.
At the end of the third quarter of 2023, 50 hedge funds in the database of Insider Monkey held stakes worth $1.9 billion in Constellation Brands, Inc. (NYSE:STZ), compared to 48 in the previous quarter worth $1.3 billion.
You can also take a peek at 13 Most Promising Low-Cost Stocks According to Analysts and 11 Best Shipping Stocks That Pay Dividends.
