In this article, we discuss the 5 best food stocks to buy now. If you want to see more stocks in this selection, check out 12 Best Food Stocks To Buy Now.
05. Performance Food Group Company (NYSE:PFGC)
Number of Hedge Fund Holders: 37
Performance Food Group Company (NYSE:PFGC) was established in 1885 and is based in Richmond, Virginia. Through its subsidiaries, Performance Food Group Company (NYSE:PFGC) sells and distributes food and food-related goods in the US.
On September 22, Performance Food Group Company (NYSE:PFGC) was given initial coverage by Stephens analyst Joshua Long with an Overweight rating and a $60 price target. According to Long, who considers Performance Food Group Company (NYSE:PFGC) to be in a good position to take advantage of its size and scale to boost operational performance, the company is “a compelling growth story within the foodservice distribution industry.”
Hedge fund sentiment around Performance Food Group Company (NYSE:PFGC) has increased in the second quarter of 2022, with 37 hedge funds long the stock, compared to 29 in Q1 2022.
Here is what ClearBridge Investments Select Strategy has to say about Performance Food Group Company (NYSE:PFGC) in its Q4 2021 investor letter:
“Performance Food Group is another example of a quality franchise bought during a depressing period for the foodservice industry that has flexed its balance sheet to make acquisitions of weaker players and continues to consolidate its leading market share.”
04. Albertsons Companies, Inc. (NYSE:ACI)
Number of Hedge Fund Holders: 37
Located in Boise, Idaho, Albertsons Companies, Inc. (NYSE:ACI) was established in 1860. Albertsons Companies, Inc. (NYSE:ACI) manages food and drug stores through its subsidiaries, across the United States. Albertsons Companies, Inc. (NYSE:ACI) is one of the largest food and drug retailers in the United States, with over 2,200 stores in 34 states across the country under well-known banners, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Haggen, and Carrs, among others.
At the end of the second quarter of 2022, 37 of the 895 hedge funds we track had a long position in Albertsons Companies, Inc. (NYSE:ACI), down from 39 funds in the previous quarter. Cerberus Capital Management was the largest shareholder on record, with ownership of 152 million shares valued at $3.9 billion.
03. The Hershey Company (NYSE:HSY)
Number of Hedge Fund Holders: 43
Established in 1894, The Hershey Company (NYSE:HSY) is based in Hershey, Pennsylvania. The Hershey Company (NYSE:HSY), together with its subsidiaries, produces and sells pantry items and confectionary goods both domestically in the U.S. and abroad. The Hershey Company (NYSE:HSY) is the top U.S. confectionery maker and controls around 46% of the domestic chocolate market. Over the past 85 years, the company’s product line has evolved to include 100 brands, including Reese’s, Kit Kat, Kisses, and Ice Breakers. Hershey’s goods are offered in around 80 countries, although only a high-single-digit percentage of sales come from international markets, such as Brazil, India, and Mexico.
The Hershey Company (NYSE:HSY) is a strong dividend stock, with 12 years of consistent dividend growth. It has a payout ratio of 44.38% and a forward dividend yield of 1.88%. On September 14, Cowen analyst Brian Holland initiated coverage of The Hershey Company (NYSE:HSY) with a Market Perform rating and a $238 price target.
As of June 2022, out of the 895 hedge funds polled by Insider Monkey, 43 had held a stake in The Hershey Company (NYSE:HSY). Jim Simons’s Renaissance Technologies is the largest investor in our database of The Hershey Company (NYSE:HSY). It owns 3.6 million shares that are worth $789 million.
02. The Kroger Co. (NYSE:KR)
Number of Hedge Fund Holders: 49
The Kroger Co. (NYSE:KR) was founded in 1883 and is based in Cincinnati, Ohio. The Kroger Co. (NYSE:KR) operates as a retailer in the United States. The Kroger Co. (NYSE:KR), one of the industry leaders in retail, benefits from economies of scale and strong earnings. The Kroger Co. (NYSE:KR) posted normalized EPS of $0.90 for the second fiscal quarter, exceeding consensus expectations by $0.07. The company’s revenue for the second quarter totaled $34.64 billion, up 9.3% over the same period last year.
On September 13, analyst Krisztina Katai with Deutsche Bank raised his price target for The Kroger Co. (NYSE:KR) from $53 to $54 while maintaining a Hold recommendation on the shares. Hedge fund sentiment around The Kroger Co. (NYSE:KR) has increased in the second quarter of 2022, with 49 hedge funds long the stock, compared to 45 in Q1 2022.
When looking at the institutional investors followed by Insider Monkey at the end of Q2, Berkshire Hathaway managed by Warren Buffett holds the biggest position in The Kroger Co. (NYSE:KR). Berkshire Hathaway has an over $2 billion position in the stock, comprising 0.82% of its 13F portfolio.
01. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders: 55
Based in Seattle, Washington, Starbucks Corporation (NASDAQ:SBUX) was established in 1971. Starbucks Corporation (NASDAQ:SBUX), together with its subsidiaries, is a global roaster, marketer, and retailer of specialty coffee. At the close of Q2 2022, 55 hedge funds out of the 895 tracked by Insider Monkey were long Starbucks Corporation (NASDAQ:SBUX). The total stakes of these hedge funds amounted to $1.43 billion.
Wall Street analysts see an upside to Starbucks Corporation (NASDAQ:SBUX). On September 22, Joshua Long, a Stephens analyst, began following Starbucks Corporation (NASDAQ:SBUX) and gave it an Equal Weight rating and a $91 price target. The analyst writes in a research note that while near-term difficulties in North America and China pose barriers to the company’s traffic and top line, he prefers to remain neutral because of the stock’s long-term investment story. On September 16, Piper Sandler analyst Nicole Miller Regan raised his price target on Starbucks Corporation (NASDAQ:SBUX) to $92 from $84 and kept a Neutral rating on the shares.
Here is what Matrix Asset Advisors specifically said about Starbucks Corporation (NASDAQ:SBUX) in its Q2 2022 investor letter:
“Starbucks Corporation (NASDAQ:SBUX) is a premiere global coffee brand supported by over 32,600 stores across the world. The firm has a long history of beverage innovation and strong employee/barista relations with the firm paying above-market wages and benefits. Starbucks has a strong balance sheet and finances. The company generates steady and consistent cash flow, selling millions of cups of premium coffee every day. The company’s share price declined in part due to its large business in China which was largely shut down due to Covid restrictions and because of rising commodity and labor costs. We think the shares are attractively priced for a company that should grow 10% plus per year with a dividend yield of 2.6% at our average cost.”
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