5 Best Whiskey and Alcohol Stocks To Buy in 2022

In this article, we will discuss the 5 best whiskey and alcohol stocks to buy in 2022. If you want to read our detailed analysis of the liquor industry which highlights key trends and major players, you can go to 10 Best Whiskey and Alcohol Stocks To Buy in 2022.

5. Diageo plc (NYSE:DEO)

Number of Hedge Fund Holders: 19

Diageo plc (NYSE:DEO) operates as a beverage alcohol company in more than 180 countries with over 140 production sites all across the globe. The company offers premium liquors such as scotch, whisky, gin, vodka, and rum, through its prominent top-selling brands such as Johnnie Walker, Crown Royal, Bulleit, and Buchanan’s whiskies. Diageo plc (NYSE:DEO) is one of the largest distillers in the world and is among the best-performing companies in the liquor industry, which makes it stand among the 5 best whiskey and alcohol stocks to buy in 2022. 

This April, Societe Generale analyst Toby McCullagh raised his price target on Diageo plc (NYSE:DEO) to 4,500 GBP from 4,250 GBP and reiterated a Buy rating on the shares.

Hedge funds are piling into Diageo plc (NYSE:DEO). Insider Monkey found that at the end of the fourth quarter of 2021, 19 hedge funds were long Diageo plc (NYSE:DEO) with stakes worth $935.93 million. This is compared to 18 hedge funds in the third quarter of 2021, with stakes worth $703.94 million.

As of March 31, 2022, Ako Capital is the most bullish on Diageo plc (NYSE:DEO) owning more than 1.6 million shares of the stock which equates to a stake value of $341.61 million.

Investment management firm Lindsell Train mentioned Diageo plc (NYSE:DEO) in its fourth-quarter 2021 investor letter. Here is what the firm had to say:

“A very important aspect of the rationale for investing in this smaller and more rarefied category is the fact that alcohol brands with a premium or luxury positioning tend to be highly differentiated, with a greater ability to increase prices over time than a “value” or mass market brand – even in downturns or periods of turbulence. Over time, these inflation-busting protective qualities usually result in considerable value creation: in January this year, against a backdrop of a sharp increase in input cost prices, Diageo reported increased operating profit margins – crucially, driven by price increases rather than cost savings – and indicated an expectation of operating profit growth of between 6 and 9% to 2025. Such an outlook would not be possible without a portfolio of beverages enjoying substantial pricing power.” (Click here to see the full text)