Are These The Best Beverage Stocks To Invest In Now?
As investors screen through the stock market for the top stocks to buy, beverage stocks would be a viable play now. With investors considering the current state of the economic recovery, most beverage companies remain essential throughout the pandemic. After all, we are looking at an industry that can be deemed essential in our daily lives. Thus, this places beverage stocks within the consumer staples sector of the market. The likes of which are often more resistant to shifting economic cycles. By extension, as beverage companies continue to serve consumers in good times or bad, I could see investors eyeing some of the top beverage stocks now.
There are many types of beverages in the stock market today, and they all cater to different types of likings. On one hand, we have PepsiCo, Inc (NASDAQ: PEP) that recently plans to sell its juice brands and seek to focus on healthier and zero-calorie drinks. On the other hand, we also have Diageo plc (NYSE: DEO) that specializes in alcoholic beverages. All in all, beverage stocks may not offer explosive growth that some sectors do. In fact, some would consider them to be among the more defensive stocks available today. So, do you think the industry fits your investment strategies? If so, why not take a look at some of the top beverage stocks in the stock market now.
Top Beverage Stocks To Buy [Or Sell] Today
- Coca-Cola Co (NYSE: KO)
- Keurig Dr Pepper Inc (NASDAQ: KDP)
- Mondelez International, Inc. (NASDAQ: MDLZ)
- Molson Coors Beverage Co (NYSE: TAP)
Coca-Cola Co
Starting us off is Coca-Cola. The company may be famous for its non-alcoholic sparkling soft drinks, but it also markets and licenses energy drinks, juice, coffee and tea, and many more. Well, its branded beverage products are available in more than 200 countries around the world. KO stock has been steadily climbing, showing gains of over 21% over the past year.
A fortnight ago, Coca-Cola announced its second-quarter earnings report. It was a strong quarter for the company as its net revenues grew by 42% to $10.1 billion year-over-year. Also, its earnings per share came in at $0.61, up by 48% year-over-year. Overall, the results are encouraging and indicate that its business is rebounding faster than anticipated. In light of that, the company has also raised its full-year guidance.
The company is not resting on its laurels just yet. Despite being one of the leading global brands in the world, it continues to expand its brand whenever possible. Last week, Coca-Cola created its first-ever NFT collectibles to commemorate International Friendship Day on July 30. All proceeds from the four-day auction on digital marketplace OpenSea will go to Special Olympics International. This goes in line with the reputation of the company that brings people together. Also, given the versatility of NFTs, could Coca-Cola expand its consumer base with it? With all these in mind, would you consider buying KO stock?
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Keurig Dr Pepper Inc
Next, we have Keurig Dr Pepper (KDP). Essentially, it is a manufacturer and distributor of non-alcoholic beverages. It offers a diverse portfolio of flavored carbonated soft drinks, and non-carbonated beverages such as juices, water, and mixers. Some popular brands out there that you may recognize would be Dr. Pepper, 7UP, Crush, and many more.
Last week, the company expanded its brewery portfolio by introducing BrewID™. This is a next-generation tech platform that allows its customers to perfectly customize their coffee just the way they like it. So, this would elevate and enhance the home coffee experience for all the coffee lovers out there. With rising fears of the coronavirus, it would not hurt to have access to better coffee at home. The L-Supreme Plus Smart brewer with BrewID is now accessible to consumers through the company’s website.
Financially, it was another strong showing by KDP for its second quarter. Its net sales for the quarter increased by 9.6% to $3.14 billion year-over-year. Meanwhile, its GAAP operating income was $734 million, up by 31% compared to the prior year’s quarter. Overall, it reflects the company’s growth in productivity and ability to navigate through a challenging macro environment marked by inflation and supply chain disruption. Given all these, would you consider KDP stock as a top beverage stock to buy?
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Mondelez International, Inc.
Mondelez is a company that manufactures and markets snack food and beverage products for consumers. Its portfolio includes various snack brands, including Nabisco, Oreo, LU, Cadbury, Milka, Cadbury Dairy Milk, and Toblerone chocolate. It is also the manufacturer of Trident gum, Halls candy, and Tang powdered beverages. MDLZ stock is one that has shown stability over the years. It has risen over 14% over the past year.
During its second quarter, the company reported revenues of $6.64 billion, representing an increase of 12.4% year-over-year. Also, its net earnings were $1.07 billion, up by a whopping 98.2% year-over-year. Across the board, it was a strong showing across all key metrics, including top-line, profitability, and cash generation. The company’s Chairman, Dirk Van De Put also reiterated its confidence in executing its long-term strategies to drive consistent and attractive growth.
On top of that, it is worth noting that Mondelez is striving to understand better the growing needs of its consumers. Back in June, the company announced a new food transparency program with the Triscuit brand. Consumers can now discover how their Triscuit crackers are made and where they’re from. Everyone wants to know more about what they consume. So, this could be a step in the right direction to cater to the growing needs of its consumer. All things considered, would you add MDLZ stock to your portfolio?
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Molson Coors Beverage Co
To sum up this list, we have the brewing company, Molson Coors. In detail, it brews, markets, and distributes a range of beer brands. Some of the beers in its portfolio include Carling, Miller Lite, Coors Light, Molson Canadian, and Straropramen. While it may be true that TAP stock has not shown lucrative returns to its existing investors thus far this year. Could we possibly see some positive price actions in the coming weeks after its encouraging second-quarter earnings report?
For the second quarter, Molson Coors posted net sales revenue of $2.94 billion, an increase of 17.4% year-over-year. The company attributes this to higher financial volumes and net sales per hectoliter. Also, its U.S. GAAP net income was $388.6 million, almost doubling that of the previous year’s quarter. This is the best quarterly top-line growth in more than a decade for the company. It is notable that the company has made significant progress against its revitalization plan that was laid out nearly two years ago.
As part of its revitalization plan to focus on higher-end brands, Molson Coors is eliminating 11 “economy” brands and discontinuing about 100 stock-keeping units. Some of the notable brands are Milwaukee’s Best Premium, High Life Light, and many more. According to company chief executive, Gavin Hattersley, “Premiumization is here to stay at Molson Coors” and it appears that it is working for the company. So, would you bet on the future of TAP stock?
