In this article we will take a look at the 5 best consumer staples stocks to buy now. For a detailed analysis of the consumer staples sector, go directly to the 10 Best Consumer Staples Stocks to Buy Now.
5. The Procter & Gamble Company (NYSE: PG)
Number of Hedge Fund Holders: 83
The Procter & Gamble Company (NYSE: PG) is a Cincinnati-based company that makes and sells consumer goods such as beauty and healthcare products. These include shampoos, deodorants, and skincare products. The firm was founded in 1837 and ranks fifth on our list of 10 best consumer staples stocks to buy now. Some of the brands it owns include the Head & Shoulders, Safeguard, Gillette, Oral-B, Ariel, Pampers, and others. The firm has a market cap of more than $333 billion and posted more than $70 billion in annual revenue in June 2020.
On April 20, The Procter & Gamble Company outlined a plan to increase prices of products as production costs increased. Investment bank Wells Fargo noted the gain in share price of the firm after the announcement of the hike but said it remained to be seen just how much of a catalyst the hike would provide when compared to rising production costs.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Cedar Rock Capital is a leading shareholder in the firm with 9.8 million shares worth more than $1.3 billion.
4. Tyson Foods, Inc. (NYSE: TSN)
Number of Hedge Fund Holders: 38
Tyson Foods, Inc. (NYSE: TSN) is an Arkansas-based multinational food company. It was founded in 1935 and is placed fourth on our list of 10 best consumer staples stocks to buy now. Tyson is the second largest producer of beef meat, chicken meat, and pork meat in the world. Some of the famous brands it owns include Jimmy Dean, Hillshire Farm, Ball Park, Wright, State Fair, Aidells, and Gallo Salame. Some products of the firm are also sold under the Tyson brand name.
Tyson Foods, Inc. has been investing in poultry as demand grows around the world. On April 22, the firm announced that it would be investing close to $48 million in an Arkansas poultry operation. The announcement followed the opening of a new Tyson poultry plant in Tennessee earlier that month.
At the end of the fourth quarter of 2020, 38 hedge funds in the database of Insider Monkey held stakes worth $867 million in the firm, up from 36 in the preceding quarter worth $618 million.
3. McCormick & Company, Incorporated (NYSE: MKC)
Number of Hedge Fund Holders: 36
McCormick & Company, Incorporated (NYSE: MKC) is a Maryland-based food company that makes and sells spices, seasoning mixes, condiments, and other flavoring products. It was founded in 1889 and is placed third on our list of 10 best consumer staples stocks to buy now. Some of the brands it owns include McCormick, French, Frank’s RedHot, Lawry’s, Gourmet Garden, Club House, and others. The company has a partnership with technology firm IBM to use artificial intelligence in order to develop better food flavorings.
McCormick & Company, Incorporated stock went up more than 5% on March 30 after the company announced quarterly results, reporting a revenue of more than $1.4 billion, up more than 225 compared to the same period last year and beating market estimates by a healthy $110 million.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Fundsmith LLP is a leading shareholder in the firm with 16.1 million shares worth more than $1.5 billion.
In the said letter, Amana Mutual Fund highlighted a few stocks and McCormick & Co Inc (NYSE:MKC) is one of them. Here is what Amana Mutual Fund said:
“Spice merchant McCormick has held up reasonably well, but we thought it might do better given the surge in home cooking. Of course, the restaurant and institutional business has fallen off.”
2. Costco Wholesale Corporation (NASDAQ: COST)
Number of Hedge Fund Holders: 61
Costco Wholesale Corporation (NASDAQ: COST) is a Seattle-based retail seller. It was founded in 1983 and is placed second on our list of 10 best consumer staples stocks to buy now. The company is one of the largest retail brands in the world with operations in tens of different countries. The firm aims to open warehouses in New Zealand and Sweden next year. Costco sells packaged foods, groceries, beverages, cleaning supplies, electronics, and other items. It has a market cap of more than $160 billion.
Costco Wholesale Corporation reported strong sales growth in April, posting more than $18 billion in sales for a five week period beginning in March, an increase of more than 17% compared to the same period last year. Investment advisory UBS gave Costco an Outperform rating the same month.
At the end of the fourth quarter of 2020, 61 hedge funds in the database of Insider Monkey held stakes worth $3.6 billion in the firm, down from 73 in the preceding quarter worth $3.8 billion.
1. Brown-Forman Corporation (NYSE: BF-B)
Number of Hedge Fund Holders: 29
Brown-Forman Corporation (NYSE: BF-B) is a Kentucky based maker of wines. It was founded in 1870 and is ranked first on our list of 10 best consumer staples stocks to buy now. Some of the products it markets include spirits, wines, cocktails, vodkas, tequilas, champagnes, brandy, bourbons, and liqueurs. It offers them under various brands, including Jack Daniel’s, Woodford Reserve, Canadian Mist, GlenDronach, BenRiach, and others. Brown-Forman primarily operates in North America, Central America, and Europe.
Brown-Forman Corporation (NYSE: BF-B) was given an Outperform rating by investment advisory Cowen on March 16 on the back of a record cash balance. There were also reports that the firm was readying a special dividend offering for shareholders.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Fundsmith LLP is a leading shareholder in the firm with 10.2 million shares worth more than $814 million.
You can also take a peek at 10 Best Travel Stocks to Buy Right Now, and 10 Best Automotive Stocks to Invest in Now.
