Rising inflation led to food prices skyrocketing. So what are the best food & beverage stocks to buy?
Food inflation has reached the United States as the prices of goods and services advanced by 7.9% YoY in February. Yesterday at the Fed’s press conference, Jerome Powell, the Fed’s Chair, emphasized that inflation is likely to keep rising in the short and medium-term.
So what are the best food & beverage stocks to buy to make the most of the rising prices? Here are four names for your consideration: Cal-Maine Foods, General Mills, Constellation Brands, and Sprout Farmers Markets.
Cal-Maine Foods (NASDAQ:CALM) is an American company based in Ridgeland, Mississippi. It is active in the packaged foods and meats industry, and its stock price is up +30.64% YTD. At the current stock market price, the company is valued at $2.29 billion, and the enterprise value is $2.21 billion.
General Mills (NYSE:GIS) is based in Minneapolis and was founded in 1866. It sells branded consumer foods such as frozen pizza and snack bars, and it is rewarding its shareholders with a hefty dividend.
The forward dividend yield for the next twelve months is 3.35%, and the payout ratio is 54.99%. The company operates with an EBIT margin for the past twelve months of 18.17%, higher than the sector median by 94.44%.
Constellation Brands (NYSE:STZ) operates in the distillers and vintners industry and is based in Victor, New York. Founded in 1945, it has bigger profitability than the sector median by 60.36%. Constellation Brands also pays a dividend and it is valued at $41.54 billion.
Sprout Farmers Markets
Sprout Farmers Markets (NYSE:SFM) was founded in 2002, and it is based in Phoenix, Arizona. It employs over 30,000 people and sells natural and organic food products.
The company is trading at an attractive valuation, judging by the fact that the P/E Non-GAAP ratio for the past twelve months is well below the sector median (14.77 vs. 19.62. At the current stock market price, Sprout has a market capitalization of $3.49 billion.