In this article, we discuss 5 beverage stocks to buy now despite economic headwinds. If you want to see more stocks on this list, check out “Preferred Sector”: 10 Beverage Stocks to Buy Now Despite Economic Headwinds.
5. Constellation Brands, Inc. (NASDAQ:STZ)
Number of Hedge Fund Holders: 41
Constellation Brands, Inc. (NASDAQ:STZ) is a New York-based company that produces, imports, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. On July 13, Redburn analyst Tristan Van Strien initiated coverage of Constellation Brands, Inc. (NASDAQ:STZ) with a Buy rating. Similarly, Barclays analyst Lauren Lieberman on July 5 raised the price target on Constellation Brands, Inc. (NASDAQ:STZ) to $281 from $272 and maintained an Overweight rating on the shares. The analyst said fundamentals “look very solid” across beer, wine, and spirits. She expects Constellation Brands, Inc. (NASDAQ:STZ) “will prove rare” for expanding reinvestment plans in 2022.
On July 30, Constellation Brands, Inc. (NASDAQ:STZ) declared a quarterly dividend of $0.80 per share, in line with previous. The dividend is payable on August 24, to shareholders of record on August 10. The stock delivers a dividend yield of 1.29% as of July 28.
According to Insider Monkey’s database, Constellation Brands, Inc. (NASDAQ:STZ) was part of 41 hedge fund portfolios at the end of Q1 2022, compared to 48 funds in the earlier quarter. Harris Associates is the biggest shareholder of the company, with 3.35 million shares worth $771.7 million.
4. Monster Beverage Corporation (NASDAQ:MNST)
Number of Hedge Fund Holders: 48
Monster Beverage Corporation (NASDAQ:MNST) is a California-based company that manufactures and markets carbonated and non-carbonated energy drinks, ready-to-drink iced teas, lemonades, juices and fruit beverages, ready-to-drink dairy and coffee drinks, sports drinks, and sodas.
Wells Fargo analyst Chris Carey on July 28 raised the price target on Monster Beverage Corporation (NASDAQ:MNST) to $110 from $105 and maintained an Overweight rating on the shares. The analyst observed that Monster Beverage Corporation (NASDAQ:MNST)’s global sales momentum has continued into Q2, but the more happening development in his view is improvement in margin potential despite deflation in some primary commodities. He also boosted his estimates on more confidence in a faster margin recovery into 2023.
According to Insider Monkey’s data, 48 hedge funds were bullish on Monster Beverage Corporation (NASDAQ:MNST) at the end of Q1 2022, up from 47 funds in the prior quarter. Jim Simons’ Renaissance Technologies held the biggest stake in the company, comprising more than 7 million shares worth $561.5 million.
3. Mondelez International, Inc. (NASDAQ:MDLZ)
Number of Hedge Fund Holders: 48
Mondelez International, Inc. (NASDAQ:MDLZ) is headquartered in Chicago, Illinois, and the company manufactures and sells snack food and beverages in Latin America, North America, Asia, the Middle East, Africa, and Europe. On July 28, Mondelez International, Inc. (NASDAQ:MDLZ) declared a $0.385 per share quarterly dividend, a 10% increase from its prior dividend of $0.350. The dividend is payable on October 14, to shareholders of record on September 30. The stock delivers a dividend yield of 2.40% as of July 28.
On July 26, Mondelez International, Inc. (NASDAQ:MDLZ) reported earnings for Q2 2022. The company posted an EPS of $0.67 and a revenue of $7.27 billion, above consensus by $0.03 and $466.10 million, respectively. Deutsche Bank analyst Steve Powers on July 27 raised the price target on Mondelez International, Inc. (NASDAQ:MDLZ) to $72 from $70 and kept a Buy rating on the shares following the Q2 results.
According to Insider Monkey’s data, Mondelez International, Inc. (NASDAQ:MDLZ) was part of 48 public hedge fund portfolios at the end of Q1 2022, up from 40 funds in the prior quarter. Ric Dillon’s Diamond Hill Capital held the largest stake in the company, comprising roughly 7 million shares worth $437.7 million.
2. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 62
PepsiCo, Inc. (NASDAQ:PEP) is an American multinational beverage giant. On July 20, PepsiCo, Inc. (NASDAQ:PEP) announced the conclusion of a new $1.25 billion 10-year green bond. The company will use the proceeds to finance eligible green projects such as sustainable packaging, decarbonization of operations and supply chain, and water sustainability.
2022 marks the 50th year of consistent dividend increases by PepsiCo, Inc. (NASDAQ:PEP), which makes the company a reliable dividend king. PepsiCo, Inc. (NASDAQ:PEP) declared a $1.15 per share quarterly dividend, which is payable on September 30 to shareholders of record as of September 2.
On July 8, Morgan Stanley analyst Dara Mohsenian said he is optimistic about PepsiCo, Inc. (NASDAQ:PEP) ahead of its Q2 report, predicting “solid” sales, above consensus earnings, and a reaffirmation of fiscal year guidance. The analyst sees PepsiCo, Inc. (NASDAQ:PEP)’s longer-term top-line growth being “sustainably above what’s priced in by the market” and maintained an Overweight rating and a $198 price target on the stock.
Among the hedge funds tracked by Insider Monkey, 62 hedge funds were bullish on PepsiCo, Inc. (NASDAQ:PEP) at the end of Q1 2022, up from 60 funds in the prior quarter. Terry Smith’s Fundsmith LLP is the leading position holder in the company, with 7.80 million shares worth $1.30 billion.
ClearBridge Investments mentioned PepsiCo, Inc. (NASDAQ:PEP) in its Q4 2021 investor letter. Here is what the firm has to say:
“The pandemic created opportunities for us to be more aggressive in a variety of areas of the market. We were opportunistic throughout the year. After a strong year for equities, we sought to bolster more defensive areas of the portfolio and added to PepsiCo, increasing our exposure to a high-quality and stable name.”
1. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 64
The Coca-Cola Company (NYSE:KO) is an American multinational beverage corporation. 2022 was the 60th consecutive year that The Coca-Cola Company (NYSE:KO) increased its annual dividends. The company declared on July 21 a $0.44 per share quarterly dividend, in line with previous. The dividend is distributable on October 3, to shareholders of record on September 16.
The Coca-Cola Company (NYSE:KO) reported its Q2 2022 results on July 26, posting earnings per share of $0.70, beating market estimates by $0.03. The revenue of $11.30 billion climbed 11.62% year over year, beating Street consensus by $737 million. On July 27, Deutsche Bank analyst Steve Powers raised the price target on The Coca-Cola Company (NYSE:KO) to $65 from $64 and maintained a Hold rating on the shares after the Q2 results.
Among the hedge funds tracked by Insider Monkey, Warren Buffett’s Berkshire Hathaway is the leading position holder in The Coca-Cola Company (NYSE:KO) as of Q1 2022, with 400 million shares worth $24.7 billion. Overall, 64 hedge funds were bullish on the stock at the end of March.
ClearBridge Investments mentioned The Coca-Cola Company (NYSE:KO) in its Q4 2021 investor letter. Here is what the firm has to say:
“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like consumer staples (Coca-Cola). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”
You can also take a look at 10 Stocks That the Russia-Ukraine War Will Affect in the Future and This Analyst Is Bearish on These 15 Retail Stocks Amid “Soft Landing” Expectations.
