n this article, we discuss the 5 best beef stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Beef Stocks to Buy Now.
5. The Kraft Heinz Company (NASDAQ:KHC)
Number of Hedge Fund Holders: 34
The Kraft Heinz Company (NASDAQ:KHC) manufactures and markets food and beverage products in the United States, Canada, the United Kingdom, and internationally. The food giant has been increasing its investment in Indonesia in the past few months, aiming to tap into the country’s growing meat replacement market. The company plans to enhance its production capabilities and explore innovative solutions for plant-based meat alternatives.
On May 5, Barclays analyst Andrew Lazar maintained an Equal Weight rating on The Kraft Heinz Company (NASDAQ:KHC) stock and raised the price target to $44 from $42, noting the company anticipates that organic sales growth will decelerate closer to its long term algorithm of 2%-3%.
Among the hedge funds being tracked by Insider Monkey, Omaha-based investment firm Berkshire Hathaway is a leading shareholder in The Kraft Heinz Company (NASDAQ:KHC) with 325 million shares worth more than $12.5 billion.
4. Tyson Foods, Inc. (NYSE:TSN)
Number of Hedge Fund Holders: 38
Tyson Foods, Inc. (NYSE:TSN) operates as a food company worldwide. The firm is one of the most innovative businesses in the beef world, recently launching a new street taco kit in time for Cinco de Mayo, an yearly festival celebrated in the memory of Spanish victory. The kit taps into the increased consumer demand for Asian and Latin flavors, capturing the popular trend of street food at home. Alongside these offerings, Tyson has introduced other meal kits, including a hibachi-style beef stir-fry kit with noodles, an Italian-style beef marinara, and a cheesy beef melt kit. During the pandemic, consumer eating habits shifted towards more experimentation and cooking at home. While meals at home remain popular, consumers seek convenient options that are delicious, flavorful, and quick. Tyson is responding to these changing needs and preferences.
On May 9, investment advisory BMO Capital maintained a Market Perform rating on Tyson Foods, Inc. (NYSE:TSN) stock and lowered the price target to $48 from $66. Analyst Andrew Strelzik issued the ratings update.
At the end of the first quarter of 2023, 38 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Tyson Foods, Inc. (NYSE:TSN), compared to 31 in the preceding quarter worth $1.4 billion.
In its Q4 2022 investor letter, Aristotle Capital Management, LLC, an asset management firm, highlighted a few stocks and Tyson Foods, Inc. (NYSE:TSN) was one of them. Here is what the fund said:
“During the quarter, we exited our investments in Sun Communities, Elanco Animal Health and Tyson Foods, Inc. (NYSE:TSN) and established new positions in Merck and Sysco.
We first invested in Tyson Foods during the second quarter of 2019. At the time, we were encouraged by what we had identified as the company’s demonstrated ability to “brand” what had been previously considered pure commodity products. Furthermore, we were attracted to Tyson’s Prepared Food business, consisting of a strong portfolio of brands with attractive margins and the opportunity to gain market share as consumer preferences shifted toward prepared foods. While we believe catalysts remain, we decided to sell, as we were concerned with management changes over the past year, starting with the CEO resigning in 2021 for personal reasons, followed by the resignation of the head of Prepared Foods and exacerbated by the company’s decision to name John R. Tyson, the 32-year-old son of the firm’s chairman, as CFO.”
3. US Foods Holding Corp. (NYSE:USFD)
Number of Hedge Fund Holders: 41
US Foods Holding Corp. (NYSE:USFD) engages in marketing, sale, and distribution of fresh, frozen, and dry food and non-food products to foodservice customers in the United States. Recent reports suggest that the company is set to acquire Renzi Foodservice, a family-owned distributor based in New York. The acquisition will expand US Foods’ presence in the Northeast and strengthen its capabilities in the region. Renzi Foodservice’s customers will benefit from US Foods’ broad product portfolio and advanced technology solutions.
On May 12, Truist analyst Jake Bartlett maintained a Buy rating on US Foods Holding Corp. (NYSE:USFD) stock and raised the price target to $49 from $43, noting the Q1 earnings beat give the firm greater confidence in its operational improvements and market share gains.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Sachem Head Capital is a leading shareholder in US Foods Holding Corp. (NYSE:USFD) with 18 million shares worth more than $699 million.
2. The Kroger Co. (NYSE:KR)
Number of Hedge Fund Holders: 43
The Kroger Co. (NYSE:KR) operates as a beef retailer in the United States. The company recently announced plans to support online grocery and meat delivery in Kentucky by opening a new facility in the region. This 2,000-square-foot facility will serve as a cross-docking site for Kroger’s 375,000-square-foot customer fulfillment center (CFC) in Monroe, Ohio. The project, valued at over $550,000, is expected to create 98 full-time jobs. The company already operates a larger 50,000-square-foot spoke in Louisville, Kentucky, which went live in August 2022. The new facility will help expand Kroger’s online order capacity and delivery service within a 200-mile radius.
On March 20, Northcoast analyst Chuck Cerankosky upgraded The Kroger Co. (NYSE:KR) stock to Buy from Neutral with a price target of $60, appreciating the strong fourth quarter earnings results of the firm.
Among the hedge funds being tracked by Insider Monkey, Omaha-based investment firm Berkshire Hathaway is a leading shareholder in The Kroger Co. (NYSE:KR) with 50 million shares worth more than $2.4 billion.
1. Albertsons Companies, Inc. (NYSE:ACI)
Number of Hedge Fund Holders: 61
Albertsons Companies, Inc. (NYSE:ACI) engages in the operation of food and drug stores in the United States. The firm sells beef products as well. On May 31, the firm announced that it would be clubbing the Signature Farms, Signature Care and Signature Cafe products under one master brand called Signature SELECT. The transition to Signature SELECT is presently underway across stores including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s and others, and is expected to be complete in early 2024
On April 25, investment advisory Tigress Financial upgraded Albertsons Companies, Inc. (NYSE:ACI) stock to Buy from Neutral and lowered the price target to $27 from $32.
At the end of the first quarter of 2023, 61 hedge funds in the database of Insider Monkey held stakes worth $4.5 billion in Albertsons Companies, Inc. (NYSE:ACI), compared to 39 in the preceding quarter worth $3.9 billion.
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