In this article, we will take a look at the Top 15 Consumer Staples Stocks According to Hedge Funds.
Consumer staples are companies that produce and market necessities that individuals and households cannot live without. These ‘essentials’, include food, beverages, personal care products, cleaning supplies for the home, and even alcohol and tobacco. As a defensive industry, the consumer staples sector provides stability and is typically less susceptible to fluctuations in the stock market and economy.
Of course, while resilient, that doesn’t mean that it is completely impervious to inflation, since profit margins can still be affected. According to the central bank’s monthly Survey of Consumer Expectations, respondents in June saw inflation at 3% in 12 months, which is the same level as it was in January.
Respondents continue to anticipate price increases in a number of key categories, despite the headline inflation estimate softening. According to the survey, there will likely be a 4.2% increase in gas prices, a 9.3% increase in medical care (the highest since June 2023), and a 9.1% increase in both rent and college tuition.
There was also some improvement in employment metrics, as expectations of a higher unemployment rate in the coming year decreased by 1.1 percentage points.
With that in mind, let’s take a look at the top consumer staples stocks to buy according to hedge funds.
Our Methodology
To compile our list of the top consumer staples stocks to buy, we started with a list of U.S.-listed companies in the industry with strong fundamentals. We then ranked them according to the number of hedge funds that held stakes in them as of the first quarter of 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
15. Anheuser-Busch InBev SA/NV (NYSE:BUD)
Number of Hedge Fund Holders: 25
Anheuser-Busch InBev SA/NV (NYSE:BUD) ranks among the top consumer staples stocks according to hedge funds. In anticipation of Anheuser-Busch InBev SA/NV (NYSE:BUD)’s July 31 earnings report, Bernstein SocGen Group maintained its Outperform rating on the stock but reduced its price target to €77 from €79 on July 3.
Though the ultimate impact would rely on offsetting price rises, the firm highlighted a number of reasons for the adjustment, including anticipated margin pressure in Brazil and Mexico during the second half of the year as a result of foreign exchange hedges turning negative.
Although Anheuser-Busch InBev SA/NV (NYSE:BUD) outperformed the overall market in recent scanner data, Bernstein also decreased its forecasts for volume growth in the US due to ongoing market difficulties and lowered its estimations for associate income, notably citing Castel and Efes.
Anheuser-Busch InBev SA/NV (NYSE:BUD) is a global beer manufacturer and distributor. Acknowledged as one of the largest breweries in the world, its main operations include the production of beer and the sale of soft drinks and non-alcoholic beverages.
14. McCormick & Company, Incorporated (NYSE:MKC)
Number of Hedge Fund Holders: 42
McCormick & Company, Incorporated (NYSE:MKC) ranks among the top consumer staples stocks according to hedge funds. The Bernstein SocGen Group kept its Market Perform rating on McCormick & Company, Incorporated (NYSE:MKC) while increasing its price target from $101 to $102 on June 27. The change comes after Bernstein characterized McCormick’s second-quarter 2025 performance as “solid.”
Since McCormick & Company, Incorporated (NYSE:MKC) sources around 17,000 ingredients from about 90 countries, its supply chain is more globally exposed than that of many other food manufacturers. As such, the company is subject to a 30% tariff on imports from China and a 10% tariff on imports from the most other nations.
According to Bernstein, these tariffs will raise McCormick’s cost of goods sold by an incremental 2% annually. McCormick’s ability to stick to its guidance while absorbing these tariff headwinds, according to the firm, shows “the strength of the underlying business.”
American food company McCormick & Company, Incorporated (NYSE:MKC) produces, distributes, and supplies the food industry as a whole with seasoning mixes, condiments, spices, and other products.
13. Constellation Brands, Inc. (NYSE:STZ)
Number of Hedge Fund Holders: 44
Constellation Brands, Inc. (NYSE:STZ) ranks among the top consumer staples stocks according to hedge funds. Jefferies boosted its price target for Constellation Brands, Inc. (NYSE:STZ) to $205 on July 7, upgrading the company from Hold to Buy. As pressure on the company’s primary Hispanic consumer base in the United States appears to be stabilizing, analysts believe the company’s valuation appears too low.
Even in the absence of an immediate improvement in consumer sentiment, Jefferies anticipates that revenue and profit growth will pick up speed in the second half of the fiscal year as year-ago comparisons become less significant and margins improve. The firm stated that, if the financial strains on lower-income drinkers ease, a more widespread recovery should ensue.
Additionally, the firm highlighted Constellation’s robust free cash flow and increasing profitability in its wine and spirits unit, which it claimed supports ongoing share buybacks.
Constellation Brands, Inc. (NYSE:STZ) is a leading manufacturer and marketer of beer, wine, and spirits, best known for its portfolio of premium imported beer brands including Corona Extra, Modelo Especial, and the Modelo Cheladas line.
12. The Kraft Heinz Company (NASDAQ:KHC)
Number of Hedge Fund Holders: 46
The Kraft Heinz Company (NASDAQ:KHC) ranks among the top consumer staples stocks according to hedge funds. On June 25, Goldman Sachs raised its rating of The Kraft Heinz Company (NASDAQ:KHC) from Sell to Neutral, citing a more balanced risk-reward view following the company’s announcement of its ongoing evaluation of strategic transactions. The firm also raised the priced target to $27 from $25.
The update comes after The Kraft Heinz Company (NASDAQ:KHC) announced on May 20 that it was looking into strategic options. At the same time, two board members representing Berkshire Hathaway, the company’s largest shareholder, resigned. Media sources imply that Berkshire may sell off its 27.5% stake, which might open the door for asset divestitures. Oscar Mayer and the company’s coffee division have been mentioned in earlier reports as possible targets, which may free up funds for share buybacks.
The Kraft Heinz Company (NASDAQ:KHC) is a global leader in food and beverage production that was founded in 2015 by the merger of Kraft Foods and Heinz. The company makes a variety of items, including dairy, meat, sauces, drinks, and other commodities.
11. Tyson Foods, Inc. (NYSE:TSN)
Number of Hedge Fund Holders: 47
Tyson Foods Inc. (NYSE:TSN) ranks among the top consumer staples stocks according to hedge funds. Piper Sandler kept its $58 price target and Neutral rating on Tyson Foods Inc. (NYSE:TSN) as of July 7. Additionally, the firm revised its Tyson model, reducing its fiscal 2025 forecast from $3.81 to $3.72 while keeping its fiscal 2026 earnings per share projection of $4.45.
Michael Lavery, an analyst at Piper Sandler, pointed to below-the-line factors that had a -$0.13 impact on the company’s third-quarter fiscal 2025 earnings. These were somewhat mitigated by increased chicken margins, which added $0.04.
The firm also emphasized the continued pressure in Tyson’s beef division, where challenging spreads and a limited supply of cattle contribute to maintaining consensus estimates about 100 basis points higher than Piper Sandler’s forecasts.
Tyson Foods Inc. (NYSE:TSN) is a multinational food company that produces and markets beef, pork, and poultry products. Its offerings range from ready-to-eat meals and raw meat cuts to well-known branded products like Jimmy Dean sausages and Tyson chicken nuggets.
10. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 49
Altria Group, Inc. (NYSE:MO) ranks among the top consumer staples stocks according to hedge funds. On July 2, UBS raised its price target for Altria Group, Inc. (NYSE:MO) from $47 to $59 and upgraded it from Sell to Neutral. The firm stated that stronger regulation against illegal e-cigarette imports, especially from China, might reduce pressure on cigarette volumes and maintain earnings growth.
The increase in enforcement, according to UBS, might improve industry trends by approximately 100 basis points, reducing the annual fall in cigarette volumes to -8% from a previous prediction of 9% or worse.
Due to improved volume performance, cost reductions of more than $600 million, and targeted price investment in its affordable Basic brand, UBS now projects that Altria’s earnings would remain stable through 2026.
UBS anticipates that Altria Group, Inc. (NYSE:MO) will post a 10.5% decline in cigarette shipments and group earnings per share of $1.41, somewhat higher than the $1.38 consensus, ahead of the company’s second-quarter results.
Altria Group, Inc. (NYSE:MO) is a prominent American company that produces and markets tobacco, cigarettes, and associated products on a global scale. The firm has also ventured into next-generation nicotine products, such as oral nicotine pouches and electronic vaping devices.
9. Sysco Corporation (NYSE:SYY)
Number of Hedge Fund Holders: 50
Sysco Corporation (NYSE:SYY) ranks among the top consumer staples stocks according to hedge funds. On June 9, Jefferies analyst Alexander Slagle maintained his Buy rating on Sysco Corporation (NYSE:SYY) and set a price target of $88 on the company’s shares. The analyst claims that the company’s size and scale, which enable large expenditures in workforce, supply chain, and technology, put it in a strong position to take advantage of long-term market share prospects domestically as well as internationally.
Furthermore, Sysco’s global operations have performed well, exhibiting the efficacy of its strategic goals with six consecutive quarters of double-digit operating profit growth.
Even though the salesforce compensation model has changed recently, Sysco Corporation (NYSE:SYY) is putting strategies in place to overcome these obstacles and pave the way for better development and fundamentals.
The biggest wholesale food distributor in the United States, Sysco Corporation (NYSE:SYY) markets and distributes goods to a range of establishments, including restaurants, healthcare facilities, and educational institutions.
8. Albertsons Companies, Inc. (NYSE:ACI)
Number of Hedge Fund Holders: 52
Albertsons Companies, Inc. (NYSE:ACI) ranks among the top consumer staples stocks according to hedge funds. UBS reaffirmed its Neutral rating and $22 price target on Albertsons Companies, Inc. (NYSE:ACI) on July 7, ahead of the grocery retailer’s impending first-quarter earnings call on July 15.
Although it points out a number of significant obstacles the company faces, UBS expects Albertsons Companies, Inc. (NYSE:ACI) will highlight productivity gains. One of the main concerns, according to UBS analyst Mark Carden, is the growing industry pricing pressure. He said that the grocery retailer had already admitted that its price disparities had been too wide in certain areas.
The current market environment seems to be increasingly challenging as even rival Kroger stated on its first-quarter call that it had made investments to lower the prices of about 2,000 additional products. According to UBS, changing tariff conditions have also reduced the likelihood that retailers will hike grocery prices to counteract restrictions on general merchandise profitability.
With operations in 34 states under well-known brands like Vons, Safeway, and Albertsons, Albertsons Companies, Inc. (NYSE:ACI) is one of the largest food and drug retailers in the United States.
7. Dollar General Corporation (NYSE:DG)
Number of Hedge Fund Holders: 55
Dollar General Corporation (NYSE:DG) ranks among the top consumer staples stocks according to hedge funds. On June 27, UBS upheld its Buy rating and $128 price target for Dollar General Corporation (NYSE:DG), pointing to the retailer’s improving trajectory following a period of mixed performance.
Recent conversations with Dollar General Corporation (NYSE:DG), according to the firm, had “the most positive tenor” the company has offered in a number of years, suggesting a possible route to a notable improvement in margins. According to UBS, Dollar General’s operating margin might rise to the 6-7% range that the company had laid out, up from the 4.5% that was anticipated this year. This would indicate substantial progress in the company’s recovery efforts.
In response to investor concerns on the durability of Dollar General’s current stock momentum, UBS said that the company has “more room to run” as it resolves its margin issues and resumes a more stable performance pattern.
Dollar General Corporation (NYSE:DG) is an American chain of variety stores that offer a range of goods throughout the mid-western, southern, southwestern, and eastern regions of the United States.
6. Kellanova (NYSE:K)
Number of Hedge Fund Holders: 71
Kellanova (NYSE:K) ranks among the top consumer staples stocks according to hedge funds. As the European Commission examines at the planned acquisition by Mars, Bernstein maintained its Market Perform rating and $83 price target on Kellanova (NYSE:K) on July 2.
The firm found little direct overlap between Mars’ primary focus on chocolate candy and Kellanova’s product line, which includes salty snacks and ready-to-eat cereal, indicating limited category competition between the two companies.
According to Bernstein’s analysis, other major industry competitors have greater flagship brands than Kellanova’s and Mars’s, even if Mars continues to hold a strong presence in the Snacks sector.
According to Bernstein, Kellanova (NYSE:K) may divest Pringles or its cereal portfolio in Germany, France, or the EU in order to allay regulatory worries. This is one of three possible outcomes including licensing or sale scenarios.
Formerly known as the Kellogg Company, Kellanova (NYSE:K) is a food manufacturing company that produces and distributes convenience foods and snacks, including cereal, crackers, and toaster pastries.
5. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 71
PepsiCo, Inc. (NASDAQ:PEP) ranks among the top consumer staples stocks according to hedge funds. Evercore ISI kept its In Line rating and $140 price target on PepsiCo, Inc. (NASDAQ:PEP) on July 10 in advance of the company’s July 17 second-quarter earnings report.
With ongoing pressure in North America, Evercore estimates organic sales growth for the company reaching 0.9% for the quarter, below the Street average of 1.8%. The firm projects earnings per share of $2.02, slightly below the Street expectation of $2.04, citing ongoing challenges for Frito-Lay North America, the possible impact of GLP-1, health trends, tariffs, and a weak consumer environment.
Conversely, PepsiCo, Inc. (NASDAQ:PEP) recently completed its acquisition of the prebiotic soda brand Poppi for $1.95 billion, which is in line with the company’s plan to increase the number of health-conscious beverages it offers.
One of the most well-known names in the world, PepsiCo, Inc. (NASDAQ:PEP) is an American multinational company involved in the food, snack, and beverage sectors.
4. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 87
The Coca-Cola Company (NYSE:KO) ranks among the top consumer staples stocks according to hedge funds. The Coca-Cola Company (NYSE:KO) announced on June 11 that it would be expanding its long-standing involvement in the music industry by partnering with Universal Music Group to start a new record label. The “genre-agnostic” label, dubbed real thing records, will prioritize fostering stronger ties between musicians and fans and promoting up-and-coming talent from around the globe. Coca-Cola and UMG had collaborated for a while, most notably on Coke Studio, a platform that showcased up-and-coming talent and debuted globally in 2022.
In terms of finances, the beverage manufacturer experienced an uptick, having reported first-quarter financial results for 2025 back in April, with global unit case volume increasing 2% year-over-year due to countries like China.
During the same quarter, the company’s organic revenue (non-GAAP) grew by 6% to $11.13 billion in total revenue. Its consolidated net income increased by 5% year-over-year to $3.34 billion, and its comparable earnings per share rose by 1% to $0.73.
The Coca-Cola Company (NYSE:KO) is a multinational beverage company that produces, develops, and sells a broad variety of nonalcoholic beverages. Coca-Cola’s brands include Fanta, Fresca, Schweppes, Sprite, and others.
3. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 88
The Procter & Gamble Company (NYSE:PG) ranks among the top consumer staples stocks according to hedge funds. Filippo Falorni, a Citi analyst, maintained a Buy rating on the The Procter & Gamble Company (NYSE:PG) and price target at $181 on June 6. P&G’s financial forecast and strategic ambitions form the basis of Filippo Falorni’s assessment.
In order to optimize its supply chain, organizational structure, and portfolio, the company has announced a two-year restructuring program. This involves getting rid of some brands and product types, which will result in cost savings over current plans although the process might be a minor hindrance to organic sales growth.
The Procter & Gamble Company (NYSE:PG) has also revised its projections for regarding tariff implications, greatly reducing the expected financial headwinds. The company has stated that it is confident in its ability to handle these difficulties and continue to meet its long-term growth goals.
The Procter & Gamble Company (NYSE:PG) is a consumer products corporation that operates in five major segments: Baby, Feminine & Family Care, Fabric & Home Care, Grooming, and Beauty.
2. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 93
Costco Wholesale Corporation (NASDAQ:COST) ranks among the top consumer staples stocks according to hedge funds. Loop Capital analysts reaffirmed their Buy rating on Costco Wholesale Corporation (NASDAQ:COST) and increased their price target from $1,110 to $1,170 on June 5. The update came in response to the company’s robust international same-store sales growth, which exceeded both their projections and the general consensus in the market.
While other international sales jumped by 8% in May, Costco’s core same-store sales increased by 6%. The analysts’ positive outlook was further influenced by the fact that the impact of foreign exchange was less damaging than had been previously expected.
The analysts observed that Costco Wholesale Corporation (NASDAQ:COST) has been sluggish to raise prices, which they think is contributing to the company’s growth in market share. They anticipate that this trend will continue as inflation impacts tariffed products.
A membership-based warehouse club, Costco Wholesale Corporation (NASDAQ:COST) offers bulk discounts on an array of products, including food, electronics, and household products.
1. Philip Morris International Inc. (NYSE:PM)
Number of Hedge Fund Holders: 104
Philip Morris International Inc. (NYSE:PM) ranks among the top consumer staples stocks according to hedge funds. On June 13, Stifel analyst Matthew Smith maintained his Buy rating on Philip Morris International Inc. (NYSE:PM), continuing his positive outlook. The update came in response to a combination of Philip Morris’s strategic posture and regulatory developments.
One such development comes in the form of the FDA beginning its review of Philip Morris’s Modified Risk Tobacco Product (MRTP) applications for ZYN products. This procedure, which comes after the previous PMTA approval, would give Philip Morris International Inc. (NYSE:PM) a competitive advantage in the tobacco industry by enabling it to offer ZYN with lower risk claims. Smith believes that ZYN has a good chance of being authorized under the MRTP, which is reinforced by the FDA’s previous positive comments on similar products.
Additionally, Philip Morris’s growth profile remains robust when compared to its counterparts in the global consumer staples market, thanks to its shift to smoke-free products and smart pricing tactics.
Philip Morris International Inc. (NYSE:PM) is a global tobacco company that provides services to consumers in over 180 countries. With Marlboro as its signature product, the firm stands out among the titans of “Big Tobacco.”
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