5 Best Stocks That Will Always Grow

In this article, we discuss the 5 best stocks that will always grow. To read the detailed analysis of the current economic landscape, go directly to the 13 Best Stocks That Will Always Grow.

5. PepsiCo, Inc. (NASDAQ:PEP)

1-year Revenue Growth Rate: 4.36%

3-year Revenue Growth Rate: 8.81%

5-year Revenue Growth Rate: 7.17%

Number of Hedge Fund Holders: 64

PepsiCo, Inc. (NASDAQ:PEP) is one of the key players in the beverage industry around the globe due to its many famous brands, including Gatorade, Pepsi-Cola, Mountain Dew, and others.

On April 24, Morgan Stanley “strongly reiterated” PepsiCo, Inc. (NASDAQ:PEP) as its Top Pick with an Overweight rating and a $190 price target. The stock’s revenue grew 7.17% over the past five years and is among the best stocks that will always grow.

64 hedge funds held stakes in PepsiCo, Inc. (NASDAQ:PEP) in the fourth quarter of 2023, with positions worth $4.556 billion. With 6.63 million shares, valued at $1.126 billion, Fundsmith LLP is the biggest shareholder of the company, as of December 31, 2023.

RiverPark Advisors made the following comment about PepsiCo, Inc. (NASDAQ:PEP) in its Q3 2023 investor letter:

“PepsiCo, Inc. (NASDAQ:PEP): PepsiCo is a leading global beverage and snack food company with a portfolio of brands, including Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker and SodaStream. The company, through its operations, authorized bottlers, contract manufacturers and other third parties, makes, markets, distributes and sells a wide variety of beverages and snack foods, serving customers and consumers in more than 200 countries and territories.

PEP, through acquisitions, marketing, and product innovation has reinvigorated top line expansion and is now expected to grow revenues in the mid-single digit percent rate for the foreseeable future. We expect this revenue growth to drive margin expansion and free cash flow growth from $5.6 billion in 2022 to $12.3 billion in 2028. Based on this more than doubling of free cash flow and the company’s 2.8% dividend yield, we believe we can achieve double digit rates of return from the stock regardless of the economic environment ahead. We initiated a small position in August.”