In this article, we will take a look at the 14 Best FMCG Stocks to Invest In.
Economic uncertainty has left businesses and consumers on edge as the U.S. continues to wage a ferocious tariff war. Nevertheless, U.S. stock markets have shrugged off the concerns depicted by the S&P 500, rallying to record highs after a 14% year-to-date gain. Amid the gains, investors are starting to question valuations that are above historical norms.
Likewise, analysts at Goldman Sachs believe it’s time for investors to look beyond the concentrated group of stocks that drove markets to record highs. According to Peter Oppenheimer, Chief Global Equity Strategist at Goldman Sachs Research, opportunities are increasingly emerging across a more diverse set of regions, sectors, and styles.
“Investors should focus on countries and companies that can specialize and dominate in their export markets, particularly in services, to offset the impact of more high-end Chinese manufacturing competition,” Oppenheimer writes.
According to the strategist, higher tariffs and a weaker dollar, coupled with increased fiscal support, could present investment opportunities in domestically focused companies that hold a dominant position in their respective markets.
Amidst valuation concerns, companies dealing in fast-moving consumer goods (FMCG) remain well-positioned to shrug off the problems. That’s because their goods will always be in demand owing to their relatively low prices and strong demand regardless of the prevailing economic situation.
Likewise, the global FMCG market is projected to grow at a compound annual growth rate (CAGR) of 3.8% between 2025 and 2032, reaching $18.96 trillion. The growth will be driven primarily by dynamic shifts in consumer behavior and technological innovations, as well as a rise in the consumption of consumer goods.
The best FMCG stocks are mostly companies that demonstrate prudent financial management. Additionally, they boast of healthy balance sheets and sustainable profit margins. Financial stability enables them to weather market fluctuations while returning shareholder value through dividends and buybacks.
Our Methodology
To identify the best FMCG stocks to invest in according to analysts, we sifted through ETFs and financial media reports. We focused on consumer goods stocks with upside potential of more than 20% (as of September 22) and are popular among elite hedge funds in Q2 2025. Finally, we ranked the stocks in ascending order based on their upside potential.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
14 Best FMCG Stocks to Invest In
14. Dollar General Corporation (NYSE:DG)
Stock Upside Potential: 21.57%
Number of Hedge Fund Holders: 55
Dollar General Corporation (NYSE:DG) is one of the best FMCG stocks to invest in. On September 18, Wolfe Research analyst Spencer Hanus reiterated an ‘Outperform’ rating on the stock and set a $139 price target.
The bullish stance is based on the stock’s underperformance relative to the overall sector over the past few years. The Wolfe Research analyst believes the tide is slowly shifting in favor of the discount retailer, as operations show signs of improvement.
According to Hanus, the company’s current estimates of its performance are too low. The stock’s valuation is also compelling, given its years of underperformance. The remarks also come as the research firm reiterates that retailers have benefited from a strong back-to-school purchasing spree.
Dollar General Corporation (NYSE:DG) operates a chain of neighborhood retail stores that provide affordable, everyday essentials, including food, cleaning supplies, personal care, and health items, to communities, particularly in rural and smaller towns.
13. Ingredion Incorporated (NYSE:INGR)
Stock Upside Potential: 23.19%
Number of Hedge Fund Holders: 34
Ingredion Incorporated (NYSE:INGR) is one of the best FMCG stocks to invest in. On September 18, UBS reiterated a ‘Neutral’ rating on the stock and a $144 price target, impressed by the company’s focus on innovation driven by healthy trends and reformulation demands.
The company anticipates its sales to increase by between 2% and 4% over the next two years, accompanied by a growth in operating income of between 5% and 7%. It also projects a 7% to 9% compound annual growth rate in adjusted EPS through 2027.
The research firm remains confident in the company’s ability to capitalize on consumer trends. However, it remains cautious about soaring pressure in North America, especially in the sweetener and high-fructose corn syrup segments.
Ingredion Incorporated (NYSE:INGR) is a global ingredient solutions company that processes plant-based materials like grains, fruits, and vegetables into value-added ingredients for the food, beverage, animal nutrition, brewing, and industrial markets. It produces starches, sweeteners, nutritional ingredients, and biomaterials that are used in various everyday products, from foods and drinks to paper and pharmaceuticals.
12. Smithfield Foods Inc. (NASDAQ:SFD)
Stock Upside Potential: 23.91%
Number of Hedge Fund Holders: 27
Smithfield Foods Inc. (NASDAQ:SFD) is one of the best FMCG stocks to invest in. On September 4, the company confirmed the pricing of a secondary public offering of 19.53 million shares of the company’s common stock, sold by SFDS UK Holdings Limited. The offering is priced at $23.35 a share.
The selling shareholder has also granted underwriters a 30-day option to purchase an additional 2.93 million shares at the public offering price, less underwriting discounts and commissions. Smithfield Foods is not selling any shares of common stock and will not receive any proceeds from the sale.
Smithfield Foods Inc. (NASDAQ:SFD) is a food company that processes and sells a wide variety of value-added packaged meats and fresh pork products. It is a market leader with a diverse portfolio of brands, including Smithfield, Eckrich, and Nathan’s Famous.
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