In this article we discuss the 5 best wine stocks to invest in 2021. If you want to read our detailed analysis of these companies, go directly to the 10 Best Wine Stocks to Invest in 2021.
5. MGP Ingredients, Inc. (NASDAQ: MGPI)
Number of Hedge Fund Holders: 7
MGP Ingredients, Inc. (NASDAQ: MGPI) is a Kansas-based firm that markets distilled spirits. It was founded in 1941 and is placed fifth on our list of 10 best wine stocks to invest in 2021. The company’s shares have offered investors returns exceeding 86% over the course of the past year. Some of the products that the company sells include bourbon, whiskey, vodka, and gin, among other beverages. In addition to making and selling alcohol, the firm also markets specialty wheat protein and starch food.
In quarterly earnings results, posted on May 5, MGP Ingredients, Inc. (NASDAQ: MGPI) reported earnings per share of $1.01 for the first three months of 2021, beating market predictions by $0.44. The revenue over the period was $108 million, up 9% year-on-year.
At the end of the first quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $28.7 million in the firm, down from 13 in the preceding quarter worth $27.6 million.
4. Diageo plc (NYSE: DEO)
Number of Hedge Fund Holders: 22
Diageo plc (NYSE: DEO) is a United Kingdom-based company that makes and sells alcoholic products. It was founded in 1997 and is ranked fourth on our list of 10 best wine stocks to invest in 2021. The stock has returned more than 30% to investors over the past twelve months. The firm owns many famous brands, including Johnnie Walker, Smirnoff, Baileys, Captain Morgan, Tanqueray, and Guinness, among several more. The company is one of the largest alcohol firms in the world with a market cap of over $112 billion.
On June 4, investment advisory Argus upgraded Diageo plc (NYSE: DEO) stock to Buy from Hold with a price target of $225. The advisory also updated fiscal year 2021 earnings per share estimates for the firm to $6.30 from $5.80.
Out of the hedge funds being tracked by Insider Monkey, Virginia-based investment firm Markel Gayner Asset Management is a leading shareholder in the firm with 1.3 million shares worth more than $221 million.
In its Q1 2021 investor letter, Weitz Investment Management, an asset management firm, highlighted a few stocks and Diageo plc (NYSE: DEO) was one of them. Here is what the fund said:
“We sold Diageo after twelve years of very profitable ownership. The global spirits company has done a fine job of growing earnings, and the stock has enjoyed an extra boost from substantial, multiple expansions along the way. While the business is in good hands, we think a repeat of our mid-double-digit annualized return experience is far less likely. We simply see better risk/reward profiles in the Fund’s other quality holdings.”
3. Constellation Brands, Inc. (NYSE: STZ)
Number of Hedge Fund Holders: 58
Constellation Brands, Inc. (NYSE: STZ) is a New York-based firm which markets several alcoholic products such as beer, wine, and spirits. It was founded in 1945 and is placed third on our list of 10 best wine stocks to invest in 2021. The stock has returned more than 28% to investors over the past year. Some of the wine-related brands owned by the firm include 7 Moons, Cook’s California Champagne, Cooper & Thief, Crafters Union, Kim Crawford, Meiomi, Mount Veeder, Ruffino, SIMI, The Dreaming Tree, and Charles Smith, among others.
On April 8, Constellation Brands, Inc. (NYSE: STZ) reported quarterly earnings results for the last quarter of 2020, posting earnings per share of $1.82, beating market predictions by $0.27. The revenue over the period was close to $2 billion, up 2.6% year-on-year.
At the end of the first quarter of 2021, 58 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in the firm, the same as in the preceding quarter worth $1.7 billion.
2. Willamette Valley Vineyards, Inc. (NASDAQ: WVVI)
Number of Hedge Fund Holders: 2
Willamette Valley Vineyards, Inc. (NASDAQ: WVVI) is an Oregon-based company that makes and sells different types of wines. It was founded in 1983 and is ranked second on our list of 10 best wine stocks to invest in 2021. The firm markets products under brand names such as Pinot Noir, Chardonnay, Pinot Gris, Pinot Blanc, Rose, Methode Champenoise Brut, and Riesling, among a host of others. The company’s shares have returned more than 122% to investors over the past twelve months.
In earnings results for the first three months of 2021, posted on May 13, Willamette Valley Vineyards, Inc. (NASDAQ: WVVI) reported a revenue of over $5.7 million for the first quarter of 2021, down 11% compared to the revenue over the same period in 2020.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in the firm with 151,403 shares worth more than $1.3 million.
1. Brown-Forman Corporation (NYSE: BF-B)
Number of Hedge Fund Holders: 35
Brown-Forman Corporation (NYSE: BF-B) is a Kentucky-based firm in the alcoholic drinks business. It was founded in 1870 and is placed first on our list of 10 best wine stocks to invest in 2021. The company’s shares have offered investors returns exceeding 18% over the course of the past twelve months. Brown-Forman has operations in more than 170 countries and owns world-famous alcohol brands such as Jack Daniel’s, Woodford Reserve, Canadian Mist, and GlenDronach, among others.
Brown-Forman Corporation (NYSE: BF-B) is one of the most dependable options for income investors as the firm pays a sizable and regular dividend to shareholders. On May 27, the company declared a quarterly dividend of $0.1795 per share, in line with previous.
Out of 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 11 million shares worth more than $774 million.
You can also take a peek at 10 Blue Chip Dividend Stocks Hedge Funds Are Buying and 14 Best European Dividend Stocks To Buy.
