14 Best FMCG Stocks to Invest In

1. Primo Brands Corporation (NYSE:PRMB)

Stock Upside Potential: 53.64%

Number of Hedge Fund Holders: 72

Primo Brands Corporation (NYSE:PRMB) is one of the best FMCG stocks to invest in. On September 11, Goldman Sachs initiated coverage of the stock with a ‘Neutral’ rating and a $25 price target. The investment bank is confident about the company’s prospects as a leading beverage company, given its presence in the bottled water market.

Consequently, Goldman Sachs expects the company to deliver a 4% organic compound annual growth rate in sales through 2028, driven by brands such as Poland Springs and Pure Life. It also expects the beverage giant to post an 8% EBITDA CAGR growth through 2028, driven by $300 million in cost synergies.

The bank expects Primo Brands to also benefit from its expansion into fast-growing categories, such as sparkling water and functional hydration products. It also expects the company to generate $1 billion in free cash flow by 2027, which should help lower debt levels.

Primo Brands Corporation (NYSE:PRMB) is a North American company that produces and delivers healthy hydration products, including spring, purified, and enhanced waters, under various well-known brands like Poland Spring, Pure Life, and Primo. They are the largest reuse and refill beverage platform in the U.S.

While we acknowledge the potential of PRMB 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 PRMB and that has 100x upside potential, check out our report about this cheapest AI stock.

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