In this article, we will discuss the 10 Best FMCG Stocks to Invest In According to Analysts.
As per Fidelity, 2025 was the year in which consumer staples stocks had a tough time, underperforming the S&P 500 index on a YTD basis. This was mainly because of the investors’ strong appetite for growth stocks, thanks to AI. However, the investment firm believes that the consumer staples will see a favourable environment in 2026 as a result of fiscal stimulus and easing of pressures, which are expected to fuel demand and valuations.
What’s Next for the Broader Sector?
As per Morningstar DBRS, a provider of independent credit rating services, the impact of pricing actions on the revenues of companies operating in the staples category is expected to be muted. The firm expects that the revenues will be helped by low single-digit volume growth. This comes amidst investments by such companies in product innovation and aggressive promotion. Despite the costs related to the initiatives, along with pressures arising from the input costs and volatility in the commodities, Morningstar DBRS expects these companies to post flat to marginally improved EBITDA margins. Therefore, it expects modest growth in EBITDA in 2026.
The firm highlighted that these expectations stem from the spill-over impact of the pricing strategies adopted in 2025, portfolio reorganization, as well as prior investments towards cost-saving initiatives.
Fidelity believes that consumer spending is expected to broaden in 2026. This means there will be a shift from the hyper-value focus dominating over the previous few years. Also, the firm opines that sector-specific challenges are now stabilizing.
Amidst such trends in the FMCG sector, we will now have a look at the 10 Best FMCG Stocks to Invest In According to Analysts.
Our Methodology
To list 10 Best FMCG Stocks to Invest In According to Analysts, we used a screener to shortlist the stocks operating in the FMCG space, and to which analysts see substantial upside. Next, we chose the ones popular among hedge funds, as of Q3 2025. The stocks are arranged in an ascending order of their average upside potential, as of February 6.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best FMCG Stocks to Invest In According to Analysts
10. Smithfield Foods, Inc. (NASDAQ:SFD)
Average Upside Potential: ~21.2%
Number of Hedge Fund Holders: 44
Smithfield Foods, Inc. (NASDAQ:SFD) is one of the Best FMCG Stocks to Invest In According to Analysts. On January 21, Smithfield Foods, Inc. (NASDAQ:SFD) and Nathan’s Famous, Inc. announced that they entered into a definitive merger agreement, wherein former will acquire all of latter’s issued and outstanding shares. The acquisition will be done at $102.00 per share in cash, resulting in an enterprise value of ~$450 million.
Notably, the acquisition of Nathan’s Famous happens to be a strong step, which will help Smithfield Foods, Inc. (NASDAQ:SFD) to own all of the top brands in its Packaged Meats portfolio. Also, it will help in unlocking new growth opportunities for its largest segment. This transaction reflects a valuation of ~12.4x Nathan’s Famous’s adjusted EBITDA on the LTM basis and a multiple of ~10.0x post-synergies.
By the second anniversary of this deal closing, Smithfield Foods, Inc. (NASDAQ:SFD) expects to achieve annual cost synergies to the tune of ~$9 million.
In a separate update, on January 21, Bank of America Securities analyst Peter Galbo maintained a “Buy” rating on the company’s stock, setting a price objective of $29.00.
Smithfield Foods, Inc. (NASDAQ:SFD) is an American food company, which has a leading position in packaged meats and fresh pork products. The company’s portfolio consists of high-quality iconic brands, like Smithfield®, Eckrich® and Nathan’s Famous®, among many others.
9. Primo Brands Corporation (NYSE:PRMB)
Average Upside Potential: ~25.2%
Number of Hedge Fund Holders: 62
Primo Brands Corporation (NYSE:PRMB) is one of the Best FMCG Stocks to Invest In According to Analysts. On January 23, BMO Capital analyst Andrew Strelzik reduced the firm’s price target on the company’s stock to $35 from $39, while keeping an “Outperform” rating, as reported by The Fly. The firm’s reduction in the price objective reflects conservative estimates for Q4 2025 and 2026. This demonstrates current investments towards the business stabilization that are continuing in H1 2026.
Another factor that resulted in price reduction was the slower-than-expected recovery in Primo Brands Corporation (NYSE:PRMB)’s customer direct business. That being said, the firm also added that the trajectory of the company’s customer direct business continues to improve, despite the progress taking place at a slower pace than expected. As per the firm, 2026 will be the year Primo Brands Corporation (NYSE:PRMB) solves its transitory integration issues, establishing the growth trajectory.
In a separate release, Mizuho reduced its price objective on Primo Brands Corporation (NYSE:PRMB)’s stock to $24 from $28, while keeping an “Outperform” rating. Notably, the firm made adjustments to its targets across the broader food producers’ space in relation to the 2026 outlook.
Primo Brands Corporation (NYSE:PRMB) is a leading North American branded beverage company, which an emphasis on healthy hydration. It offers domestically sourced diversified offerings throughout products, formats, channels, price points and consumer occasions. The company also has an industry-leading line-up of innovative water dispensers.
8. The Marzetti Company (NASDAQ:MZTI)
Average Upside Potential: ~25.5%
Number of Hedge Fund Holders: 27
The Marzetti Company (NASDAQ:MZTI) is one of the Best FMCG Stocks to Invest In According to Analysts. On February 3, the company announced that it entered into a definitive agreement for the acquisition of Bachan’s, Inc. Notably, the transaction will help expand the company’s position in the broader sauce category. Also, it will offer growth opportunities via retail and foodservice distribution network, supply chain capabilities, etc. The Marzetti Company (NASDAQ:MZTI) highlighted that the purchase price is $400 million, and the aim is to finance the acquisition with cash and additional financing.
Bachan’s net sales for 12 months to December 31 came in at ~$87 million. Bachan’s developed an original Japanese Barbecue Sauce, and the founder scaled this brand. Over time, The Marzetti Company (NASDAQ:MZTI) plans to broaden distribution, help product innovation, and enhance this brand to include new channels as well as adjacent categories.
In a different release, on February 3, The Marzetti Company (NASDAQ:MZTI) released Q2 2026 results, with consolidated gross profit rising $4.5 million, or 3.4%, to a record level of $137.3 million. The rise was because of the favourable impacts of the company’s cost savings initiatives.
The Marzetti Company (NASDAQ:MZTI) is engaged in the manufacturing and marketing of specialty food products for the retail as well as foodservice channels.
7. Celsius Holdings, Inc. (NASDAQ:CELH)
Average Upside Potential: ~35.9%
Number of Hedge Fund Holders: 58
Celsius Holdings, Inc. (NASDAQ:CELH) is one of the Best FMCG Stocks to Invest In According to Analysts. On January 29, Piper Sandler lifted its price objective on the company’s stock to $65 from $61, while keeping an “Overweight” rating, as reported by The Fly. As per the firm, the company remains well-placed to surpass estimates of Q4 2025. The firm also opines that the consensus and buy-side sales projections seem to be appropriate and might have a marginal upside, subject to Alani Nu’s smooth transition.
In a separate release, on January 29, JPMorgan lifted its price objective on Celsius Holdings, Inc. (NASDAQ:CELH)’s stock to $77 from $68, while maintaining an “Overweight” rating, as reported by The Fly. The firm sees potential upside to Celsius Holdings, Inc. (NASDAQ:CELH)’s forecasts and valuation multiples. As per the analyst, 2026 is expected to be a favourable year for the company due to category captaincy amidst the expansion of a partnership with PepsiCo. Elsewhere, Alani Nu continues to benefit from ramping distribution.
Celsius Holdings, Inc. (NASDAQ:CELH) is engaged in developing, processing, manufacturing, marketing, selling, and distributing functional energy drinks.
6. e.l.f. Beauty, Inc. (NYSE:ELF)
Average Upside Potential: ~36.3%
Number of Hedge Fund Holders: 43
e.l.f. Beauty, Inc. (NYSE:ELF) is one of the Best FMCG Stocks to Invest In According to Analysts. On February 4, the company announced results for the 3 and 9 months ended December 31, 2025, with quarterly net sales rising 38% to reach $489.5 million, mainly because of growth in retailer and e-commerce channels in the US and internationally.
Furthermore, e.l.f. Beauty, Inc. (NYSE:ELF)’s quarterly gross margin declined by ~30 bps to 71%, mainly because of increased tariff costs. However, this was partially mitigated by the benefits from pricing and mix.
e.l.f. Beauty, Inc. (NYSE:ELF) raised its FY 2026 outlook, mainly because of Rhode’s outperformance. For FY 2026, the company expects net sales growth of ~22% – 23% YoY, an increase from the prior expectation of 18% – 20%. It anticipates Rhode to contribute ~$260 million – $265 million in the net sales to FY 2026. Previously, it expected a $200 million contribution.
On February 5, JPMorgan analyst Andrea Teixeira lifted the firm’s price objective on the company’s shares to $105 from $103, while keeping an “Overweight” rating.
e.l.f. Beauty, Inc. (NYSE:ELF) is a multi-brand beauty company, providing inclusive, accessible, clean, vegan and cruelty free cosmetics as well as skin care products. The family of brands consists of e.l.f. Cosmetics, e.l.f. SKIN, Naturium, Well People and Keys Soulcare.
5. Performance Food Group Company (NYSE:PFGC)
Average Upside Potential: ~39.6%
Number of Hedge Fund Holders: 51
Performance Food Group Company (NYSE:PFGC) is one of the Best FMCG Stocks to Invest In According to Analysts. On February 5, UBS reduced its price objective on the company’s stock to $108 from $120, keeping a “Buy” rating. As per the analyst, the company’s growth outlook is intact. This is even after the impact on profitability after the release.
Elsewhere, on February 4, the company released its Q2 2026 and H1 2026 results, with total case volume rising 3.4% YoY. Notably, Performance Food Group Company (NYSE:PFGC)’s total organic case volume went up by 2.8% YoY for Q2 2026, thanks to the 5.3% rise in organic independent cases. These included growth in Performance Brands cases and in cases that were sold to Foodservice’s chain business.
Performance Food Group Company (NYSE:PFGC)’s net sales for Q2 2026 went up by 5.2% YoY to $16.4 billion. This growth was mainly because of an increase in cases sold as well as a higher selling price per case. Performance Food Group Company (NYSE:PFGC)’s net income for Q2 2026 rose $19.3 million YoY to $61.7 million. This was mainly aided by higher gross profit. However, this was partially mitigated by higher operating expenses, income taxes, and interest expense.
For Q3 2026, Performance Food Group Company (NYSE:PFGC) anticipates net sales of between ~$16.0 billion – $16.3 billion.
Performance Food Group Company (NYSE:PFGC) is engaged in the marketing and distribution of food and food-related products. It markets and delivers quality food and related products across several locations, including independent and chain restaurants, businesses, schools, as well as healthcare facilities, vending and office coffee service distributors, etc.
4. McCormick & Company, Incorporated (NYSE:MKC)
Average Upside Potential: ~48.2%
Number of Hedge Fund Holders: 40
McCormick & Company, Incorporated (NYSE:MKC) is one of the Best FMCG Stocks to Invest In According to Analysts. On January 23, UBS analyst Bryan Adams reduced its price objective on the company’s stock to $67 from $70, while keeping a “Neutral” rating, as reported by The Fly. As per the analyst, McCormick & Company, Incorporated (NYSE:MKC)’s Q4 2025 EPS didn’t meet the estimates. Also, the initial FY 2026 guidance was below the estimates.
On January 22, McCormick & Company, Incorporated (NYSE:MKC) released its Q4 2025 results, with net sales rising 3% YoY to $1,850.4 million. It also consisted 1% favorable impact from currency. Notably, the company saw differentiated, volume-led organic growth and share gains. This came amid investment in brands, distribution expansion, and innovation throughout the portfolio. On a reported basis, McCormick & Company, Incorporated (NYSE:MKC) expects net sales growth of 13% to 17% for FY 2026.
Amidst headwinds and higher costs, McCormick & Company, Incorporated (NYSE:MKC) continues to use its competitive advantages, productivity initiatives, and cost management.
McCormick & Company, Incorporated (NYSE:MKC) manufactures, markets, and distributes herbs, spices, seasonings, etc. to the food and beverage industry.
3. BellRing Brands, Inc. (NYSE:BRBR)
Average Upside Potential: ~49.7%
Number of Hedge Fund Holders: 45
BellRing Brands, Inc. (NYSE:BRBR) is one of the Best FMCG Stocks to Invest In According to Analysts. On February 4, UBS reduced its price objective on the company’s stock to $23 from $26, while keeping a “Neutral” rating, as reported by The Fly. As per the analyst, the timing supported the company for Q1 2026 beat. Notably, BellRing Brands, Inc. (NYSE:BRBR) stated that it delivered Q1 2026 results ahead of its guidance, with its operating plans remaining on track.
On February 3, the company reported net sales of $537.3 million, reflecting an increase of 0.8%, or $4.4 million YoY, thanks to the 0.7% volume growth and 0.1% rise in price/mix. Furthermore, BellRing Brands, Inc. (NYSE:BRBR)’s operating profit came in at $78.5 million, reflecting a decline of $36.8 million YoY because of reduced gross margins.
Elsewhere, on February 3, TD Cowen reduced its price objective on the company’s stock to $24 from $27, while keeping a “Hold” rating, as reported by The Fly. As per the firm, the company reduced its 2026 guidance. This comes amidst a rise in shake category promotional frequency and, to a lesser extent, increased whey costs.
BellRing Brands, Inc. (NYSE:BRBR) offers various nutrition products. It is a dynamic and fast-growing consumer brands business, with an emphasis on growing the proactive wellness category.
2. Oddity Tech Ltd. (NASDAQ:ODD)
Average Upside Potential: ~96.2%
Number of Hedge Fund Holders: 31
Oddity Tech Ltd. (NASDAQ:ODD) is one of the Best FMCG Stocks to Invest In According to Analysts. On January 20, Barclays analyst Lauren Lieberman reduced the firm’s price objective on the company’s stock to $40 from $46, while keeping an “Equal Weight” rating, as reported by The Fly.
Notably, the firm adjusted its targets in the broader consumer staples category in relation to the Q4 2025 earnings. The firm believes that recent enthusiasm in the stock was because of investors’ flight to safety. It remains worried about fundamentals related to the company and sector. The analyst believes that the potential oil and currency headwinds might materialize in 2026.
Elsewhere, on January 12, Oddity Tech Ltd. (NASDAQ:ODD) announced that it entered into amendments to the existing agreements with a syndicate of banks. This was done to secure credit facilities to the tune of $350 million. These facility agreements amend and replace its prior $200 million credit facilities. Also, it enhances the company’s financial flexibility to finance growth initiatives, acquisitions, share buybacks, etc.
Oddity Tech Ltd. (NASDAQ:ODD) is a consumer technology company, which is engaged in building digital-first brands for the beauty and wellness industries.
1. Natural Grocers by Vitamin Cottage, Inc. (NYSE:NGVC)
Average Upside Potential: ~104.3%
Number of Hedge Fund Holders: 21
Natural Grocers by Vitamin Cottage, Inc. (NYSE:NGVC) is one of the Best FMCG Stocks to Invest In According to Analysts. On February 5, the company released results for Q1 2026, with net sales rising $5.4 million, or 1.6%, to reach at $335.6 million as compared to Q1 2025. This was because of a $5.7 million rise in comparable store sales as well as $2.4 million growth in new store sales.
Notably, the impact was partially mitigated by a $2.8 million decline in net sales associated with closed stores. Natural Grocers by Vitamin Cottage, Inc. (NYSE:NGVC) stated that its gross margin fell by 40 bps to 29.5% during Q1 2026 as compared to 29.9% in Q1 2025. This decline was because of lower product margin, mainly because of higher inventory shrink.
Elsewhere, on February 3, the company announced that it is adding 2 new, organic flavors to its Natural Grocers® Brand Chocolate Bar selection. Furthermore, Natural Grocers by Vitamin Cottage, Inc. (NYSE:NGVC) announced plans to open a new store in Lake Geneva, Wisconsin. This will be the company’s first store in Wisconsin, demonstrating a significant milestone.
Natural Grocers by Vitamin Cottage, Inc. (NYSE:NGVC) is a specialty retailer of natural and organic groceries and dietary supplements.
While we acknowledge the potential of NGVC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NGVC and that has 100x upside potential, check out our report about this cheapest AI stock.
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