If there is any holiday celebrated in the United States that is among the favorites among all citizens, it has to be Independence Day. It transcends through all walks of life, and the secular nature of the celebration makes it one for all Americans. The Fourth of July honors a day that is perhaps the most important in the nation’s history. From the largest cities to the smallest rural communities, the pride and participation of small kids to senior citizens mark this truly special day.
At 24/7 Wall St., we thought it was a good time to look at top companies that are usually big winners. They may be even bigger this year as the celebration falls on a Monday, so many may be up for an extended weekend. With parades, barbecues, boating, bands and much more, many Americans will head to the store to get provisions for the big day, or before heading out for fun vacations.
We screened our 24/7 Wall St. research database and found five top stocks that may have a solid start to the third quarter because of the holiday. While all are rated Buy, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This remains a top Warren Buffet holding, as he owns a massive 400 million shares. Coca-Cola Co. (NYSE: KO) is the world’s largest beverage company, refreshing consumers with more than 500 sparkling and still brands that will be in Fourth of July coolers. And it has an incredibly strong worldwide brand, with 40% overseas sales.
Led by Coca-Cola, one of the world’s most valuable brands, the company’s portfolio features 20 billion-dollar brands including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade, Minute Maid, Simply, Georgia and Del Valle. Globally, it is the number one provider of sparkling beverages, ready-to-drink coffees and juices and juice drinks.
Through the world’s largest beverage distribution system, consumers in more than 200 countries enjoy Coca-Cola beverages at a rate of more than 1.9 billion servings a day. Also remember that the company also owns 16.7% of Monster Beverage, which continues to deliver big numbers.
Coca-Cola stock investors receive a 2.80% dividend. Truist Financial has a $75 target price on the shares, and the consensus target is $69.84. The final trade on Thursday came in at $62.91 per share.
Even in bad times, everybody has to eat, and this company always stands to benefit, especially when grilling hot dogs and cheeseburgers is on the Fourth of July menu. Kraft Heinz Co. (NASDAQ: KHC) was formed via the merger of H.J. Heinz and Kraft Foods. The company is a leading global food company, with $29 billion of annual revenues generated by such well-known brands as Kraft, Heinz, Oscar Meyer and Maxwell House.
Kraft Heinz is the third-largest food and beverage manufacturer in North America, deriving 76% of revenues from that market and 24% internationally. Additional brands include Oscar Meyer, Maxwell House, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Ore-Ida, Oscar Mayer, Philadelphia, Planters, Plasmon, Quero, Weight Watchers Smart Ones and Velveeta.
Buffett holds a massive position in Berkshire Hathaway of 325 million shares, which is a stunning 26.6% of the company’s stock float.
Shareholders receive a 4.20% dividend. Kraft Heinz stock is on the BofA Securities US 1 list of top picks. The firm’s $48 price target compares with a $42.88 consensus target and Thursday’s close at $38.14.
This grocery chain giant is always a solid idea, and people will be flocking to stores around the country for provisions to get ready for the festivities. Kroger Co. (NYSE: KR) operates as a retailer in the United States. It operates combination food and drug stores, multi-department stores, marketplace stores and price impact warehouses.
Its food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood and organic produce. Its multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products and toys.
The company’s marketplace stores offer full-service grocery, pharmacy, health and beauty care, and perishable goods, as well as general merchandise, including apparel, home goods, and toys. The price impact warehouse stores provide grocery and health and beauty care items, as well as meat, dairy, baked goods and fresh produce items.
The company also manufactures and processes food products for sale in its supermarkets and online, and it sells fuel through 1,613 fuel centers. As of January 29, 2022, the company operated 2,726 supermarkets under various banner names in 35 states and the District of Columbia.
Shareholders receive a 2.20% dividend. BofA Securities has set a $75 target price. The consensus target on Kroger stock is only $55.04, and the closing share price on Thursday was $47.33.
While the iconic American beer company did merge with a Canadian beer giant, it is still based in Denver, and nothing beats a cold beer on the Fourth of July. Molson Coors Beverage Co. (NYSE: TAP) is one of the world’s largest brewers (more than a 3% global share) with core brands Coors Light, Miller Lite, Carling, Molson Canadian and Staropramen.
Molson and Coors merged in February 2005 and added StarBev in 2012, and it serves markets including the United States, Canada, Eastern Europe and the United Kingdom and Ireland, with exposure to other markets through its Molson Coors International division. It acquired the remainder (58%) of the U.S. joint venture (MillerCoors) in mid-October 2016.
The Coors light brand remains a huge favorite with Generation X and baby boomers, who were all around when the light beer revolution started. The company is now working on opportunities to market a cannabis-infused product.
Shareholders receive a 2.79% dividend. The $66 Jefferies price target is well above the $56.59 consensus target. Molson Coors Brewing stock closed trading on Thursday at $54.51.
This is a top consumer staples stock that will be supplying the snacking goods for summer picnics, especially on the Fourth of July. PepsiCo Inc. (NYSE: PEP) operates as a food and beverage company worldwide. Its Frito-Lay North America segment offers Lay’s and Ruffles potato chips; Doritos, Tostitos and Santitas tortilla chips; and Cheetos cheese-flavored snacks, branded dips and Fritos corn chips.
The Quaker Foods North America segment provides Quaker oatmeal, grits, rice cakes, natural granola and oat squares, as well as the recently name-changed Aunt Jemima mixes and syrups, and Quaker Chewy granola bars, Cap’n Crunch cereal, Life cereal and Rice-A-Roni side dishes.
Its North America Beverages segment offers beverage concentrates, fountain syrups and finished goods under the Pepsi, Gatorade, Mountain Dew, Diet Pepsi, Aquafina, Tropicana Pure Premium, Sierra Mist and Mug brands, as well as ready-to-drink tea and coffee, and juices.
Shareholders receive a 2.80% dividend. The BofA Securities price target on PepsiCo stock is $190. The consensus target is $183.20, and shares closed at $166.66 on Thursday.
These five All-American companies should have solid Fourth of July sales and are poised to continue to be solid investments for the second half of 2022. With second-quarter earnings right around the corner, it may be smart to buy partial positions now, and see how the results come in. However, given the very defensive posture of these blue-chip leaders, all should be outstanding stocks to own going forward if we slip into a recession, which seems highly likely now.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.