Investing in the beverages sector. Three stocks to consider
Some of the top names within the beverage sector have been able to offset inflation, one financial experts says, which is why he sees buying opportunities within the space.
Speaking with BNN Bloomberg's Amber Kanwar on Monday, Gerald Pascarelli, analyst at Wedbush Securities Inc., said large-cap beverage stocks could be a defensive play for investors looking for revenue growth in spite of the inflationary climate.
“This outsized pricing, which is obviously a key driver in any revenue growth algorithm, is resulting in the ability for these companies to offset inflated levels of commodity cost inflation,” he said.
Pascarelli recommended Constellation Brands Inc. (STZ), MGP Ingredients, Inc. (MGPI) and Keurig Dr Pepper Inc. (KDP) as his three hot picks in the beverage sector.
He, his family members, his firm and his investment banking clients do not own any of the stocks mentioned above.
Check out the full video at the top of the article to learn more.