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4 Top Beverages Stocks To Buy In October 2022

Originally published on Best Stocks

Category: best stocks to buy now

The world of beverage stocks is red-hot right now, with analysts reporting that the global adult drink market reached record-high sales in 2018. Beverage companies are responding to changing tastes by launching new products, expanding into other markets, or buying smaller competitors. As a result, investors have been snapping up beverage stocks in response. As a result, there are plenty of opportunities to invest in the sector, but which ones should you choose?

PepsiCo (PEP)

Market Cap: $202.7 billion. PepsiCo is the largest beverage company in the world, with a product range spanning carbonated soft drinks, non-carbonated drinks, waters, teas, coffees, and sports drinks. The company’s sparkling beverages are sold under the Pepsi, Mountain Dew, Sierra Mist, Mug root beer, and Amp brands. It also produces Gatorade sports drinks, Tropicana juice and fruit drinks, and Quaker Oats and Naked brands for the non-carbonated drinks market.PepsiCo has been producing and selling drinks for over sixty years, during which time it built a strong brand name. It has also diversified into numerous other product categories, including snacks, pet food, and processed foods—so profitability has remained strong despite declining drink sales.

Neat Dr. Pepper (KDP)

Market Cap: $9.9 billion Pepper Snapple Group (DPS) is the second-largest beverage company in the US behind PepsiCo. The company’s product range includes carbonated soft drinks, non-carbonated drinks, teas, coffees, and sports drinks. DPS’s signature brand is Dr. Pepper, although it also produces Diet Dr. Pepper, Ten energy drinks, A&W root beer, and Sunkist orange soda. For its non-carbonated drinks, Dr. Pepper Snapple produces 7 Up, Hawaiian Punch, Squirt, and Canada Dry, as well as Hawaiian Coffee, Tea Total, and flavored iced teas. However, Dr. Pepper Snapple Group has a mixed record regarding growth. Its DPS Beverages unit has seen falling sales of carbonated soft drinks, leading many investors to question the company’s future. On the other hand, sales of non-carbonated drinks have been rising steadily. Snapple tea, in particular, has seen strong demand in recent years, with sales growing by over 20% annually.

Fomento Economico Mexicano (FMX)

Market Cap: $154.0 billion Mexican beverage company Fomento Economico Mexicano is known by its Mexican acronym, FMX. The company is a leading soft drinks producer with a strong presence in the Latin American market and a growing presence in the US. FMX’s product range includes carbonated soft drinks, fruit drinks, coffee, and energy drinks. The company’s flagship brands are Jarritos (fruit drinks), Cafe de Olla (coffee), and Sol (soda).FMX has performed strongly in recent years, with revenues growing by over 10% in the last four years. In addition, theIn addition, the company has been expanding into new product segments, with coffee, energy drinks, and fruit juices all growing strongly. These have offset weakening sales of carbonated soft drinks.

National Beverage (FIZZ)

Market Cap: $1.9 billion national Beverage is a small but innovative soft drinks producer. The company’s main products are sparkling fruit drinks and teas, with its FIZZiT and State Fair brands being particularly famous. In recent years, National Beverage has also been expanding into the sports and energy drinks segments, with its Nu-Liquid sports drink and N-Charge energy drink products being popular among athletes. The future looks bright for National Beverage, which has seen strong growth in both revenues and profits in recent years. The company has been focusing on growing its sales through existing retailers rather than through direct sales, which should help it to scale up profitably. It should also benefit from the growing popularity of sparkling beverages.

Final Words

Beverage stocks are hot right now, with the global adult drink market growing strongly in recent years. Investors have been snapping up shares in beverage companies, but which stocks should you buy? You should consider investing in PepsiCo, Dr. Pepper Snapple Group, Fomento Economico Mexicano, and National Beverage. Beverage stocks tend to be cyclical, with sales rising and falling with the times. This can make them risky—but it also makes them a great opportunity for investors. When the next downturn comes, beverage stocks will likely fall further than most—making them a great short-term opportunity. When it comes time to invest in the sector, keep an eye on these top beverage stocks to buy in October 2022.

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