Top beverage stocks to watch in July: GIS, TAP, HSY, K & CALM

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Top beverage stocks to watch in July: GIS, TAP, HSY, K & CALM

 Top beverage stocks to watch in July: GIS, TAP, HSY, K & CALM
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Highlights:

  • General Mills, Inc.'s (NYSE: GIS) operating cash flow increased 11% YoY to US$3.3 billion in the fiscal year ended June 30, 2022.
  • The Hershey Company (NYSE: HSY) expects net sales growth to be between 10% and 12% for fiscal 2022.
  • Molson Coors Beverage Company (NYSE: TAP) has a P/E ratio of 11.03 and a dividend yield of 2.75%. 

The beverage stocks comprise both soft and hard drinks and are a part of the consumer staples family. Their products include bottled or canned diet drinks, water, and alcoholic beverages. 

Consumer staples are considered recession-proof. This segment historically stayed in good stead even during economic disruptions, geopolitical strife, and health crisis like the Covid-19 pandemic. Here we discuss five beverage stocks that remained in the green YTD.   

General Mills, Inc. (NYSE: GIS)

Closing price on June 30, 2022: US$75.45

Minneapolis, Minnesota-based General Mills is a packaged food company. It produces snacks, cereal, baking mixes, yogurt, dough, pet food, and ice cream.

For the fiscal year ended June 30, 2022, the company reported a net sale of US$19.0 billion, a 5% increase YoY, compared to US$18.12 billion in the previous fiscal year.

Its net earnings attributable to General Mills increased 16% YoY to US$2.7 billion or EPS diluted of US$4.42 compared to US$2.3 billion or US$3.78 per share diluted in fiscal 2021. The increase was driven by higher operating profit and a lower effective tax rate.

Its operating cash flow increased 11% YoY to US$3.3 billion.

For the fiscal year 2023, the company expects organic net sales to increase by 4% to 5%. 

GIS has a market capitalization of US$45.22 billion. The stock traded in the range of US$75.74 to US$56.67 in the last 52 weeks.

Its P/E ratio is 17.07, and the forward P/E for one year is 18.86. This stock’s dividend yield is 2.73%, and the annualized dividend is US$2.16.

 

The Hershey Company (NYSE: HSY) 

Closing price on June 30, 2022: US$215.16

This confectionery manufacturer is based in Hershey, Pennsylvania. Besides its namesake label, it has over 100 brands, such as Kit Kat, Kisses, and Ice Breakers, sold in about 80 countries.

For the quarter ended April 3, 2022, its net sales came in at US$2.7 billion, a 16.1% increase YoY, compared to US$2.3 billion in the same quarter of the previous year. 

The company posted a net income attributable to The Hershey Company of US$533.5 million or US$2.57 per common share diluted versus US$395.8 million or US$1.90 per common share diluted in the previous year’s April quarter. 

For full-year 2022, the company expects the net sales growth to be between 10% and 12%.

The stock has a market capitalization of US$44.59 billion. HSY traded in the range of US$$231.59 to US$167.80 in the last 52 weeks.

Its P/E ratio is 27.66, and the forward P/E for one year is 26.79. Hershey’s dividend yield is 1.65%, and the annualized dividend is US$3.604. 

Kellogg Company (NYSE: K) 

Closing price on June 30, 2022: US$71.34

Kellogg manufactures cereal, crackers, and other packaged foods. The company is based in Battle Creek, Michigan and markets its products in around 180 countries. 

It announced recently plans to split the company into three independent firms by spinning off its North American cereal and plant-based foods businesses.

For the first quarter ended April 2, 2022, its net sale was US$3.67 billion compared to US$3.58 billion for the corresponding period a year ago. 

It booked a net income of US$422 million or US$1.23 EPS diluted compared to US$368 million or US$1.07 EPS diluted in the April quarter of 2021. 

The stock has a market capitalization of US$24.1 billion. It traded in the range of US$75.56 to US$59.54 in the last 52 weeks.

Its P/E ratio is 15.89, and the forward P/E for one year is 17.44. This stock’s dividend yield is 3.24%, and the annualized dividend is US$2.32.

Molson Coors Beverage Company (NYSE: TAP) 

Closing price on June 30, 2022: US$54.51

Golden, Colorado-based Molson Coors is a beer producer. It brews and markets several brands, including Blue Moon, Miller, Vizzy, and Coors.

The company generated sales of US$2.64 billion, around a 17% increase YoY, for the quarter ended March 31, 2022, compared to US$2.25 billion in the same quarter the previous year. 

Its net income came in at US$137.3 million or US$0.70 per share diluted compared to US$82 million or US$0.30 per share in the March quarter of 2021.

The stock has a market capitalization of US$11.87 billion. TAP traded in the range of US$57.75 to US$42.46 in the last 52 weeks.

Its P/E ratio is 11.03, and the forward P/E for one year is 13.59. This stock’s dividend yield is 2.75%, and the annualized dividend is US$1.52.

 

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Cal-Maine Foods, Inc. (NASDAQ: CALM)

Closing price on June 30, 2022: US$49.41

Cal-Maine Foods Inc produces and sells shell eggs and is based in Ridgeland, Mississippi. Its product portfolio comprises organic, nutritionally enhanced brown eggs. 

For the three months ended February 26, 2022, it booked net sales of US$477.4 million compared to US$359 million in the same quarter in 2021. 

The company's net income was US$39.4 million or US$0.81 per diluted share compared to US$13.5 million or US$0.28 per share in the February quarter of 2021. 

The stock has a market capitalization of US$2.42 billion. It traded in the range of US$59.95 to US$33.85 in the last 52 weeks.

It has a P/E ratio of 133.81, and the forward P/E for one year is 25.21. Cal-Maine’s dividend yield is 1%, and the annualized dividend is US$0.50.

Bottom line:

US consumer spending grew at its slowest pace in May, which doesn’t look very optimistic. Yet, consumer staples stocks might offer relief as they generally stay steady during volatile market conditions. Regardless of the market scenario, investors should carefully analyze the shares and the external factors before choosing any stock for investment.

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