Cathie Wood’s 5 Favorite Stock Picks for the Rest of 2022

4. McCormick & Company, Incorporated (NYSE:MKC)

Number of Hedge Fund Holders: 34

McCormick & Company, Incorporated (NYSE:MKC) was founded in 1889 and is headquartered in Hunt Valley, Maryland. The company manufactures and distributes spices, seasoning mixes, condiments, and other products to the food industry. Cathie Wood’s ARK Investment Management added McCormick & Company, Incorporated (NYSE:MKC) to its portfolio in the second quarter of 2022. 

Argus analyst John Staszak downgraded McCormick & Company, Incorporated (NYSE:MKC) on July 6 to Hold from Buy. The downgrade was due to McCormick & Company, Incorporated (NYSE:MKC)’s high input costs and modest earnings guidance for the next year, in addition to the stock’s comparatively high valuation, the analyst told investors. 

Among the hedge funds tracked by Insider Monkey, 34 funds were bullish on McCormick & Company, Incorporated (NYSE:MKC) at the end of the first quarter of 2022, up from 25 funds in the earlier quarter. Terry Smith’s Fundsmith LLP is the biggest stakeholder of the company, with roughly 15.5 million shares worth $1.5 billion. 

Here is what ClearBridge Sustainability Leaders Strategy has to say about McCormick & Company, Incorporated (NYSE:MKC) in its Q3 2021 investor letter:

“Within consumer staples, we sold out of Unilever, a great company and sustainability leader that we believe faces margin headwinds as it invests to promote growth, and replaced it with McCormick, a leader in food seasonings and flavors. McCormick is a high-quality business that has lagged recently due to the negative COVID-19 impacts on the business, which provided us with an attractive entry point. The company is also levered to the healthy eating trend, as seasonings are a healthier substitute for sugar and fat.”