In this article, we will look at 5 best organic food stocks to invest in. If you want to read our detailed analysis of the organic food industry which highlights key trends and major players, you can go directly to 10 Best Organic Food Stocks To Invest In.
5. The Kraft Heinz Company (NASDAQ:KHC)
Number of Hedge Fund Holders: 35
The Kraft Heinz Company (NASDAQ:KHC) manufactures and markets food and beverage products in the United States, Canada, the United Kingdom, and internationally. The company offers a range of organic products as part of its portfolio of more than 200 premium brands that are sold in roughly 200 countries across the globe. The Kraft Heinz Company (NASDAQ:KHC) is the third-largest food and beverage company in North America and the fifth-largest food and beverage company in the world, which justifies its high rank among the best organic food stocks to invest in now.
In addition to being a food and beverages giant, The Kraft Heinz Company (NASDAQ:KHC) is an undervalued dividend player. As of June 10, the stock has a forward PE ratio of 13.94, a forward dividend yield of 4.28%, and has gained 9.14% over the past six months.
On April 27, The Kraft Heinz Company (NASDAQ:KHC) announced that its board of directors have declared a quarterly cash dividend of $0.40 per share of the company’s common stock.
Hedge funds are raising their stakes in The Kraft Heinz Company (NASDAQ:KHC). Insider Monkey found 35 hedge funds bullish on the stock at the close of Q1 2022. The total stakes of these funds amounted to $13.44 billion, up from $12.21 billion in the previous quarter with 39 positions.
As of March 31, Berkshire Hathaway is the leading shareholder in The Kraft Heinz Company (NASDAQ:KHC), owning over 325.63 million shares of the company which amounts to a stake of $12.82 billion. The investment covers 3.52% of Warren Buffett’s 13F portfolio.
4. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 37
General Mills, Inc. (NYSE:GIS) is an American multinational manufacturer and marketer of branded consumer foods and offers a wide range of food products including ready-to-eat cereals, refrigerated yogurt, soup, meal kits, and organic food products, among others. The company is known for its consumer-loved brands Betty Crocker, Pillsbury, Cheerios, Trix, Lucky Charms, Count Chocola, and Cocoa Puffs. General Mills, Inc. (NYSE:GIS) owns the world-famous organic food brand, Annie’s, and its industry-leading position makes it rank high among the best organic food stocks to invest in now.
General Mills, Inc. (NYSE:GIS) is making unparalleled strides in the organic food industry. This June, the company invested $3 million in support to fund the launch of the Ecosystem Services Market Consortium’s program for regenerative agriculture. The company put forth a multi-year roadmap to scale Eco-Harvest, ESMC’s market program, with a focus on regions in the U.S. and Canada.
On May 26, Deutsche Bank analyst Steve Powers raised his price target on General Mills, Inc. (NYSE:GIS) to $75 from $73 and reiterated a Buy rating on the shares.
Insider Monkey spotted 37 hedge funds bullish on General Mills, Inc. (NYSE:GIS) having stakes worth $819.57 million in the company at the close of Q1 2022. This is compared to 36 positions in the previous quarter with stakes worth $781.36 million. The hedge fund sentiment for the stock is positive.
In the first quarter of 2022, Renaissance Technologies raised its stakes in General Mills, Inc. (NYSE:GIS) by 4%, bringing them to $300.11 million. Renaissance Technologies is the most prominent shareholder in the company.
Miller Howard Investments mentioned General Mills, Inc. (NYSE:GIS) in its third-quarter 2021 investor letter. Here is what the firm had to say:
“Other stocks providing balance against our cyclicals include General Mills (GIS). They pay good dividends supported by stable business models and have a conservative amount of debt. The dividend yield on our Income-Equity Strategy is now 3.6%. The No-MLP version yield is 3.5%. Both yields are roughly 2.5 times the yield on the S&P 500 Index, and we are seeing dividend increases across our portfolios. Our income advantage over the broad market is significant, yet we also believe that we have enough cyclical tilt to perform well in a recovery. We continue to monitor a variety of risks, with inflation and COVID-19 trends being most important.”
3. The Kroger Co. (NYSE:KR)
Number of Hedge Fund Holders: 45
The Kroger Co. (NYSE:KR) is among the largest retailers in the United States. The company operates a combination of food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. Among the company’s product offerings there is a wide range of natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce. The Kroger Co. (NYSE:KR) is most famous for its organic food brand, Simple Truth, and is among the top three organic food stocks to invest in now.
Analysts are bullish on The Kroger Co. (NYSE:KR). On June 6, Guggenheim analyst John Heinbockel raised his price target on The Kroger Co. (NYSE:KR) to $57 from $49 and reiterated a Buy rating on the shares.
On June 9, The Kroger Co. (NYSE:KR) announced the expansion of its delivery services to serve customers in South Florida, with the opening of its new location in Miami.
The Kroger Co. (NYSE:KR) is another undervalued dividend player in the organic food industry. As of June 10, The Kroger Co. (NYSE:KR) has a forward PE ratio of 13.47, a dividend yield of 1.64%, and has appreciated by 30.01% over the past twelve months.
At the close of Q1 2022, 45 hedge funds were long The Kroger Co. (NYSE:KR) and held stakes worth $5.16 billion in the company. This is compared to 41 hedge funds in Q4 2021 with stakes worth $4.15 billion. The hedge fund sentiment for the stock is positive.
As of March 31, Warren Buffett’s Berkshire Hathaway is the dominating stakeholder in The Kroger Co. (NYSE:KR) owning over 57.98 million shares of the company which amounts to a stake of $3.32 billion.
2. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 60
Walmart Inc. (NYSE:WMT) is the largest retailer in the world, both domestically and internationally. The company operates a chain of hypermarkets, discount department stores, and grocery stores in the United States. As of this April, Walmart Inc. (NYSE:WMT) operates over 10,585 stores and clubs in 24 countries under 46 different labels. The company boasts a portfolio of over 1000 organic food products, making it rank among the top 3 organic food stocks to invest in now.
On May 17, Walmart Inc. (NYSE:WMT) announced earnings for the fiscal first quarter of 2023. The company reported earnings per share of $1.30 but missed expectations by $0.18. The company’s revenue for the quarter amounted to $140.29 billion, up 2.28% year over year, outperforming market consensus by $2.24 billion.
On June 6, Morgan Stanley analyst Simeon Gutman reiterated his Overweight rating and $156 price target on Walmart Inc. (NYSE:WMT) following the company’s shareholder meeting on June 3, 2022.
At the end of the first quarter of 2022, 60 hedge funds held stakes in Walmart Inc. (NYSE:WMT). The total value of these stakes came in at $6.56 billion.
In the first quarter of 2022, GQG Partners raised its Q4 2021 stakes in Walmart Inc. (NYSE:WMT) by 49%, bringing them to $2.29 billion in the first quarter of 2022. As of March 31, GQG Partners owns 15.43 million shares of Walmart Inc. (NYSE:WMT) and is the most prominent shareholder in the company.
1. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 61
Costco Wholesale Corporation (NASDAQ:COST) is the second-largest retailer in the world but is the world’s largest retailer of organic food products.
This April, the big-box retailer released earnings for the fiscal third quarter of 2022. The company registered an EPS of $3.04 and beat expectations by $0.02. The company’s revenue for the quarter amounted to $52.60 billion, up 16.16% year over year, and beat Wall Street consensus by $1.11 billion. As of June 10, Costco Wholesale Corporation (NASDAQ:COST) has appreciated by 23.25% over the past twelve months.
Costco Wholesale Corporation (NASDAQ:COST) is experiencing increasing demand for its products. Recently, the company reported its sales volumes for May 2022, which came in at $18.23 billion, up 16.9% year over year.
This June, Atlantic Equities analyst Daniela Nedialkova noted Costco Wholesale Corporation (NASDAQ:COST) has continuously delivered “strong comp momentum” while she reiterated her Overweight rating and $615 price target on the stock.
Hedge funds are piling into Costco Wholesale Corporation (NASDAQ:COST). Insider Monkey found 61 hedge funds bullish on Costco Wholesale Corporation (NASDAQ:COST) with stakes worth $5.41 billion at the end of Q1 2022. This is compared to 57 hedge funds in Q4 2021 with stakes worth $5.40 billion. The hedge fund sentiment around Costco Wholesale Corporation (NASDAQ:COST) is positive.
As of March 31, Fisher Asset Management is the most bullish hedge fund on Costco Wholesale Corporation (NASDAQ:COST). Ken Fisher’s hedge fund increased its stakes in Costco Wholesale Corporation (NASDAQ:COST) in the first quarter of 2022 by 4%, bringing them to $2.43 billion.
ClearBridge Investments mentioned several companies in its “Sustainability Leaders Strategy” fourth-quarter 2021 investor letter, one of which was Costco Wholesale Corporation (NASDAQ:COST). Here is what the firm said:
“Portfolio gains were led by a diverse group of contributors. Also in consumer discretionary, Costco, which operates a chain of membership-only big-box retail stores, continues to impress as it takes to share and becomes more relevant for the consumer even as the world opens up.”
