In this article, we will look at the 10 Best Sugar Stocks to Buy According to Hedge Funds.
On February 20, Chris Verrone, Strategas chief market strategist, appeared on CNBC’s ‘Money Movers’ to talk about how to consider the reaction from the SCOTUS decision on Trump’s tariffs. The Supreme Court ruled against Trump’s global tariffs in a 6-3 decision, and Verrone was of the view that this was the expected outcome, and that the market’s reaction to an expected outcome is usually to yawn through it. According to him, what’s going to be more important in the coming 4, 6, 8, 12 weeks is how the discretionary starts to respond.
READ ALSO: 10 Best Pet Stocks to Buy According to Hedge Funds AND 11 Best Natural and Organic Food Stocks to Buy Now.
He opined that we went into 2026 with a well-formed narrative about why discretionary spending should be really good here, with a backdrop featuring tax refunds, stimulus, and, potentially, what we saw today with tariffs. Whether discretionary would be able to respond to all that in the next number of months would be an important question, according to Verrone, as to how the market perceives the economy moving forward. Therefore, he is of the view that discretionary spending could tell us about the market’s perception of the economy.
He further stated that he is usually skeptical when there is a fully formed narrative before the stocks actually move, as it is typically the other way around in this business. He is, therefore, a bit struck that maybe the response of the discretionary is a bit more modest than what you might expect here.
With these market trends in view, let’s look at the best sugar stocks to buy according to hedge funds.
Our Methodology
We sifted through the Finviz stock screener and financial media reports to compile a list of the best stocks associated with the sugar industry, and selected the top 10 most popular among elite hedge funds as of Q3 2025. We sourced the hedge fund data from Insider Monkey’s database. The stocks are ranked in ascending order of hedge fund sentiment.
Note: All data was recorded on February 21.
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 Sugar Stocks to Buy According to Hedge Funds
10. Ingredion Incorporated (NYSE:INGR)
Number of Hedge Fund Holders: 29
Ingredion Incorporated (NYSE:INGR) is one of the best sugar stocks to buy according to hedge funds. On February 18, Barclays reaffirmed a Hold rating on Ingredion Incorporated (NYSE:INGR) and set a price target of $128. The rating update came after Ingredion Incorporated (NYSE:INGR) announced on February 11 that its Board of Directors unanimously elected Jim Zallie, President and CEO, to assume the additional role of chairman of the board, effective immediately.
In another development, UBS raised the price target on Ingredion Incorporated (NYSE:INGR) to $124 from $119 on February 5, maintaining a Neutral rating on the shares. BMO Capital also adjusted the price target on Ingredion Incorporated (NYSE:INGR) to $120 from $123 on February 4, keeping a Market Perform rating on the shares and telling investors that fiscal Q4 results missed consensus estimates. This reflects weaker profits in the Texture & Healthful Solutions segment, according to the firm.
The same day, Barclays raised the price target on Ingredion Incorporated (NYSE:INGR) to $128 from $124 while maintaining an Equal Weight rating on the shares. The rating update came after the company’s fiscal Q4 report, with the firm telling investors that the results were affected by continued headwinds associated with a facility outage.
Ingredion Incorporated (NYSE:INGR) is a global ingredients solutions provider that transforms fruits, vegetables, grains, and other plant-based materials into value-added ingredient solutions for several markets, including food, beverage, animal nutrition, brewing, and industrial markets. It is involved in the sugar reduction and sugar alternatives domains. The company’s products are primarily derived from the processing of corn and other starch-based materials, including rice, potato, and tapioca. It operates through four segments: North America, South America, Asia-Pacific, and Europe, the Middle East and Africa (EMEA).
9. Bunge Global SA (NYSE:BG)
Number of Hedge Fund Holders: 33
Bunge Global SA (NYSE:BG) is one of the best sugar stocks to buy according to hedge funds. Bunge Global SA (NYSE:BG) received several rating updates by analysts on February 5. JPMorgan lifted the price target on the stock to $130 from $117 and maintained an Overweight rating on the shares. UBS also raised the price target on Bunge Global SA (NYSE:BG) to $145 from $108, reaffirming a Buy rating on the stock and telling investors that the company reported a fiscal Q4 earnings beat and provided conservative guidance.
Stephens also lifted the price target on Bunge Global SA (NYSE:BG) to $130 from $115 on February 5 and maintained an Overweight rating on the shares. It stated in a post Q4 note that with a demonstrated track record of execution and multiple earnings growth levers ahead, the firm continues to like the company “even at these levels”.
In another development, BMO Capital lifted the price target on Bunge Global SA (NYSE:BG) to $130 from $110 on February 5 while maintaining an Outperform rating on the shares.
Bunge Global SA (NYSE:BG) is a global agribusiness and food company and has historically been involved in sugarcane processing and ethanol production. Its Milling segment operates businesses that sell wheat flour, bakery mixes, and corn-based products. Through its Refined and Specialty Oils segment, Bunge Global SA (NYSE:BG) sells vegetable oils and fats, including cooking oil, specialty ingredients, and more.
8. Archer-Daniels-Midland Company (NYSE:ADM)
Number of Hedge Fund Holders: 35
Archer-Daniels-Midland Company (NYSE:ADM) is one of the best sugar stocks to buy according to hedge funds. Barclays lifted the price target on Archer-Daniels-Midland Company (NYSE:ADM) to $68 from $61 on February 19 and maintained an Equal Weight rating on the shares.
In another development, BMO Capital adjusted the price target on the stock to $63 from $57 on February 4, maintaining a Market Perform rating on the shares following the company’s release of fiscal Q4 results. The firm told investors that it lifted its price target as methodology increasingly reflects RVO, biofuel blending quota, and implications, but remains on the sidelines in a backdrop where concerns exist that the favorable fundamental outlook is not translating to EPS.
Archer-Daniels-Midland Company (NYSE:ADM) also received a rating update from JPMorgan the same day. The firm lifted the price target on the stock to $61 from $60 and maintained an Underweight rating on the shares, telling investors that it views the Archer-Daniels-Midland Company’s (NYSE:ADM) 2026 outlook as “more reasonable than conservative.”
Archer-Daniels-Midland Company (NYSE:ADM) is a human and animal nutrition company that serves as an agricultural processor and supply chain manager. The company offers liquid sucrose, invert sugar, and granulated sugar in a full range of products and blends, including dry and bulk liquid sugars, as well as an elaborate range of sweetening solutions. It operates through the Carbohydrate Solutions, Nutrition, and Ag Services and Oilseeds segments.
7. The J.M. Smucker Company (NYSE:SJM)
Number of Hedge Fund Holders: 41
The J.M. Smucker Company (NYSE:SJM) is one of the best sugar stocks to buy according to hedge funds. On February 20, TD Cowen lifted the price target on The J.M. Smucker Company (NYSE:SJM) to $112 from $105 and maintained a Hold rating on the shares. The rating update came after the CAGNY presentation, with the firm telling investors in a research note that the company’s commentary was constructive on fiscal 2026.
Separately, The J.M. Smucker Company (NYSE:SJM) has received several rating updates since the beginning of the year, with Barclays reaffirming a Hold rating on the stock on January 19 and setting a price target of $105.
In addition, Morgan Stanley downgraded The J.M. Smucker Company (NYSE:SJM) to Equal Weight from Overweight on January 16, bringing the price target down to $105 from $115 after a period of solid relative share outperformance. The firm told investors that the U.S. food sector is facing increasing competitive risk with value-focused pricing, private label momentum, and promotions accelerating into 2026. These trends are adding to the “already present” sales pressures, limiting the scope for margin recovery.
The J.M. Smucker Company (NYSE:SJM) manufactures and markets branded food and beverage products under a portfolio of brands. The company offers various products such as sweeteners, jams, and more. Its operations are divided into four segments: Sweet Baked Snacks, US Retail Coffee, US Retail Frozen Handheld and Spreads, and US Retail Pet Foods.
6. The Hershey Company (NYSE:HSY)
Number of Hedge Fund Holders: 46
The Hershey Company (NYSE:HSY) is one of the best sugar stocks to buy according to hedge funds. Stephens adjusted the price target on The Hershey Company (NYSE:HSY) to $260 from $200 on February 12 and reiterated an Overweight rating on the shares. The firm told investors that it updated the rating on the stock after a “clean” Q4 beat and fiscal year 26 guidance that “reads better-than-feared on both sales and adjusted EPS.”
It added that investors will watch in the near term as tariffs and higher cost inventory continue to pressure results before an anticipated inflection. However, in the longer term, Stephens sees a path to balanced growth as the category proves durable and margins normalize.
In a separate development, Morgan Stanley lifted the price target on The Hershey Company (NYSE:HSY) to $238 from $214 on February 6, maintaining an Overweight rating on the shares and stating that it raised the FY26/FY27 estimates after solid fiscal Q4 results and the FY26 guidance coming in ahead of consensus. The same day, Goldman Sachs also adjusted the price target on The Hershey Company (NYSE:HSY) to $267 from $233 while maintaining a Buy rating on the shares.
The Hershey Company (NYSE:HSY) manufactures and markets chocolate, sweets, mints, and confectionery items. It operates through the North America Confectionery, North America Salty Snacks, and International segments. Its brand portfolio includes Hershey’s, Reese’s, and Kisses.
5. Mondelez International, Inc. (NASDAQ:MDLZ)
Number of Hedge Fund Holders: 50
Mondelez International, Inc. (NASDAQ:MDLZ) is one of the best sugar stocks to buy according to hedge funds. Mondelez International, Inc. (NASDAQ:MDLZ) announced on February 17 that it would highlight its commitment to long-term value creation at the 2026 Consumer Analyst Group of New York (CAGNY) Conference, supported by its portfolio of snack brands. It further stated that Mondelēz International will reaffirm its long-term growth algorithm of 3% to 5% organic net revenue growth, high-single-digit adjusted EPS growth, and more than $3 billion in free cash flow. Management reported that while unprecedented cocoa input cost inflation affected the 2025 performance, Mondelez International, Inc. (NASDAQ:MDLZ) delivered solid top-line growth and strong free cash flow.
In a separate development, DA Davidson lifted the price target on Mondelez International, Inc. (NASDAQ:MDLZ) to $64 from $62 on February 9 and maintained a Neutral rating on the shares. It told investors that spending to drive brand equity, along with channel expansion and distribution gains efforts, should ultimately yield sustained growth in a more normalized backdrop. However, the firm added that in the near term, inventory cost phasing and customer disruption in Europe will pressure the top and bottom line through the first half of 2026.
Mondelez International, Inc. (NASDAQ:MDLZ) manufactures and markets packaged snack food and beverage products. Its offerings include chocolate, gum, beverages, candy, cheese, meals, and more. The company’s brand offerings include Oreo, Cadbury Dairy Milk, Ritz, LU, Milka, Toblerone chocolate, and others. Mondelez International, Inc. (NASDAQ:MDLZ) sells its products in more than 150 countries. Its segments include Latin America, AMEA, Europe, and North America.
4. Monster Beverage Corporation (NASDAQ:MNST)
Number of Hedge Fund Holders: 56
Monster Beverage Corporation (NASDAQ:MNST) is one of the best sugar stocks to buy according to hedge funds. On February 20, Deutsche Bank lifted the price target on Monster Beverage Corporation (NASDAQ:MNST) to $88 from $84 while keeping a Buy rating on the shares. In a separate development, Argus raised the price target on the stock to $95 from $90 on January 27 while maintaining a Buy rating on the shares.
The firm stated that Monster Beverage Corporation (NASDAQ:MNST) has the potential to grow both its international and domestic revenue, as Monster holds an impressive history of expansion with five-year compound annual sales and EPS growth rates of 13%-15%. It added that the company has a clean balance sheet, and while its valuations are on the rich side, the stock merits a premium given the company’s product launches and enhancements.
In another development, Morgan Stanley lifted the price target on Monster Beverage Corporation (NASDAQ:MNST) to $96 from $87 on January 26, maintaining an Overweight rating on the shares. The firm considers enhanced management execution “an underappreciated source of upside”, which adds to the already high long-term sustainability of the company’s outsized topline growth.
Monster Beverage Corporation (NASDAQ:MNST) is involved in the development, sale, marketing, and distribution of energy drink beverages and concentrates. The company’s operations are divided into the following segments: Monster Energy Drinks, Strategic Brands, and Other.
3. Keurig Dr. Pepper Inc. (NASDAQ:KDP)
Number of Hedge Fund Holders: 58
Keurig Dr. Pepper Inc. (NASDAQ:KDP) is one of the best sugar stocks to buy according to hedge funds. On February 19, RBC Capital reaffirmed a Buy rating on Keurig Dr. Pepper Inc. (NASDAQ:KDP) and set a price target of $42. In a separate development, the company announced the continued evolution of its Board of Directors on February 12, effective March 2, and that two new independent directors, Amie Thuener and William “Bill” Newlands, will join the Board. Management added the same day that the existing Remuneration & Nominating Committee will separate into newly-created Nominating & Governance and Compensation Committees.
Keurig Dr. Pepper Inc. (NASDAQ:KDP) stated that these changes support its transformation and value creation agenda, as it is moving towards the closing of the JDE Peet’s acquisition in early Q2 and progressing over the following quarters towards a separation into two independent companies, Beverage Co. and Global Coffee Co., pending the announcement of official corporate names.
Keurig Dr. Pepper Inc. (NASDAQ:KDP) also announced on January 22 that it is set to release its financial results for fiscal Q4 and full year ended December 31, 2025, before the market opens on Tuesday, February 24, 2026.
Keurig Dr. Pepper Inc. (NASDAQ:KDP) is involved in the manufacture, distribution, marketing, and sale of non-alcoholic beverages. Its operations are divided into the following segments: U.S. Refreshment Beverages, U.S. Coffee, and International. The U.S. Refreshment Beverages segment distributes and manufactures beverage concentrates, syrups, and finished beverages, including the brands Dr. Pepper, Snapple, A&W, 7UP, Hawaiian Punch, Core Hydration, Bai, Yoo-Hoo, Vita Coco, and more.
2. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 68
PepsiCo, Inc. (NASDAQ:PEP) is one of the best sugar stocks to buy according to hedge funds. On February 20, TD Cowen lifted the price target on PepsiCo, Inc. (NASDAQ:PEP) to $165 from $162, maintaining a Hold rating on the shares and telling investors that the company provided color on its turnaround strategy, reiterated its 2026 guidance, and expressed confidence it can return to 4%-6% sales growth by the second half of 2026.
In a separate development, PepsiCo, Inc. (NASDAQ:PEP) announced on February 19 its expansion into a new food category with the launch of a ready-to-heat range of vegetable soups under its Alvalle brand. Management reported that the range builds on the brand’s success in the packed gazpacho soup category and aligns with consumer trends toward health, convenience, and plant-based eating, and customers seeking ready-to-eat, nutritious meals.
PepsiCo, Inc. (NASDAQ:PEP) further reported that the expansion aligns with the company’s focus as a food company rooted in agriculture, and marks its latest initiative into broadening its food portfolio across the globe, following recent acquisitions such as Siete Foods and Sabra dips.
PepsiCo, Inc. (NASDAQ:PEP) manufactures, markets, distributes, and sells beverages, food, and snacks. The company operates in the following segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), PepsiCo Beverages North America (PBNA), Latin America (LatAm), Europe, Africa, Middle East, and South Asia (AMESA), and Asia Pacific, Australia and New Zealand, and China Region (APAC).
1. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 78
The Coca-Cola Company (NYSE:KO) is one of the best sugar stocks to buy according to hedge funds. The Coca-Cola Company (NYSE:KO) announced on February 19 that its Board of Directors elected a new company officer and approved the company’s 64th consecutive annual dividend increase. The company is raising the quarterly dividend by around 4% from 51 cents to 53 cents per common share, and the quarterly dividend is equivalent to an annual dividend of $2.12 per share, up from $2.04 per share in 2025.
Management stated that the first quarter dividend is payable on April 1 to shareowners of record as of March 13. It also provided additional context, reporting that The Coca-Cola Company (NYSE:KO) returned $8.8 billion in dividends to shareowners in 2025, which brings the total amount of dividends paid to shareowners since Jan. 1, 2010, to $101.9 billion.
In a separate development, Barclays reiterated a Buy rating on The Coca-Cola Company (NYSE:KO) on February 18 with a price target of $83. Previously, the firm lifted the price target on the stock to $83 from $77 on February 12, maintaining an Overweight rating on the shares. UBS also raised the price target on The Coca-Cola Company (NYSE:KO) to $87 from $82 on February 11 and maintained a Buy rating on the shares. The firm told investors that while the company’s quarter had more moving pieces than usual, the fundamental trajectory is still solid.
The Coca-Cola Company (NYSE:KO) manufactures and markets non-alcoholic beverages. It has a range of water, sports, coffee, and tea brands, including Costa Coffee, Georgia Coffee, Gold Peak Tea, Fuze Tea, and more.
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