7 Best Sugar Stocks to Buy According to Analysts

1. Ingredion Incorporated (NYSE:INGR)

Upside Potential: 21.84%

Number of Hedge Fund Holders: 36

Ingredion Incorporated (NYSE:INGR) is the world’s largest supplier of ingredient solutions, with a focus on biomaterials made from maize and other starch-based materials, sweeteners, and starches. The company is a major player in the changing sugar market, with a diverse clientele spanning sectors like food and beverage, medicines, and manufacturing.

Due to reduced maize prices, Ingredion Incorporated (NYSE:INGR)’s fourth-quarter net sales declined by 6%, amounting to $1.8 billion. Nonetheless, the company’s gross profit increased by 12%, indicating its flexibility in responding to market shifts. It reported a record gross profit of $1.8 billion and net sales of $7.4 billion for the full year. Its margins increased by 270 basis points to 24.1%. The company’s high-margin specialty ingredients business, which experienced a 5% year-over-year growth in adjusted operating income, was the main driver of these results.

Despite lower demand for particular sweeteners, Ingredion Incorporated (NYSE:INGR) has been able to stay profitable by modifying its pricing and controlling input costs. Due to successful contract renewals and operational savings, the company’s operating income increased by 25% in the U.S. and Canada, even though net sales decreased by 8%.

Furthermore, Ingredion Incorporated (NYSE:INGR)’s approach remains centered on innovation. Its new collaboration with Oobli aims to complement other natural sweeteners like stevia by introducing sweet proteins as a sugar substitute. Its continued investment in sugar substitutes has enhanced its ability to assist food and beverage industries in achieving cost-effectiveness and nutritional objectives.

Ingredion Incorporated (NYSE:INGR)’s excellent financial standing, organizational efficiency, and ongoing leadership in sugar reduction all contribute to its value as an investment. Focusing on future sugar solutions, Ingredion is well-positioned as one of the 7 best sugar stocks to buy according to analysts.

Overall, Ingredion Incorporated (NYSE:INGR) ranks first on our list of the best sugar stocks to buy according to analysts. While we acknowledge the potential of INGR, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INGR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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