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Yahoo
01-05-2025
- Business
- Yahoo
Why Dingdong (Cayman) Limited (DDL) is Among the Best Grocery Stocks to Buy for Recession Resistant Investing
We recently published a list of . In this article, we are going to take a look at where Dingdong (Cayman) Limited (NYSE:DDL) stands against other best grocery stocks to buy now for recession resistant investing. On April 24, Bryan Spillane, BofA Securities senior consumer analyst, appeared on CNBC's 'The Exchange' to talk about food stocks and how higher costs are weighing on consumers. He said that the biggest incremental headline right now is that costs are a bigger risk than anticipated going into the recent earnings season. Although there is a lot of focus on revenue risk, costs have taken the lead, and tariff risks are also affecting companies across the consumer staples industry. Companies are sending marketing messages to consumers saying that they won't be raising prices, which is something consumers didn't see during COVID-19. These trends are raising concerns about margin pressures across corporate America. Addressing these questions, Spillane said these companies no longer have the ability to price. If there are incremental costs, whether from tariffs or other sources, they will either come from additional cost-cutting or result in margin pressure. Margin pressure is materializing in some major companies in the consumer staples sector, and it is likely to persist into the next quarter as well. READ ALSO: and . These trends raise the question of whether consumer staples are an area of stability amid current market volatility and macroeconomic concerns. Spillane said that this is a very similar dynamic to what we have seen in the last month or so, which is that the stocks have held in relatively well, even though earnings estimates have come down. He further said that we have to be very selective from here onwards. Consumer staple companies that do not have negative earnings revision risks are a decent place to hide amid the current market dynamics. However, he warned that the fundamentals are decelerating for the consumer staple companies. These stocks are likely to remain under pressure if market fundamentals continue the way they are. We discussed the risks of recession looming over the stock market in a recently published article on . Here is an excerpt from the article: Threats of an impending recession are looming over the stock market due to Trump's tariffs and macroeconomic uncertainty. According to CNBC's quarterly CFO Council Survey for Q1 2025, a majority of chief financial officers are of the opinion that the economy is likely to fall into a recession in H2 2025. The CFOs said that they were generally 'pessimistic' about the overall state of the American economy, and expressed uncertainty about the stock market. With the risk of an impending recession deepening, let's look at the 10 best grocery stocks to buy now for recession-resistant investing. We sifted through stock screeners, financial media reports, and ETFs to compile a list of 15 major grocery stocks and chose the top 10 with the highest number of hedge fund holders as of Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey's database. The list is ordered in ascending order of hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (). A close-up view of a farm's green vegetables, ripening in the (Cayman) Limited (NYSE:DDL) is a China-based e-commerce company that delivers groceries and other daily life necessities directly to users. Its offerings include fresh produce, meat, seafood, and other items. Its frontline fulfillment grid comprises over 950 frontline fulfillment stations across 29 Chinese cities. The grid is also supported by around 40 regional processing centers that package, sort, label, and store raw products before fulfillment. It takes the tenth spot on our list of the best recession-resistant stocks in the grocery store sector. The company underwent significant improvement in its fiscal Q4 2024 earnings, reporting an 18.4% increase in Gross Merchandise Volume (GMV) and a notable increase in GAAP and non-GAAP net income, making it another consecutive quarter of profitability. Dingdong (Cayman) Limited's (NYSE:DDL) total revenue rose by 18.3% compared to last year, supported by an expanded station network and higher user engagement. However, the most notable improvement of all that invoked positive investor sentiment was a 617.9% year-over-year growth in non-GAAP net income, reaching RMB116.7 million. Analysts are also bullish on the stock, and its median price target of $2.54 implies an upside of 81.31% from current levels. The company attributed its growth trajectory to improved operational efficiency, strategic focus on improving user penetration, expanding product offerings, developing forward warehouse networks in key regions, and introducing new products. Dingdong (Cayman) Limited (NYSE:DDL) expects to continue its growth trajectory with a focus on operational excellence and high-quality product offerings, and plans to maintain non-GAAP profitability in the upcoming quarters. Overall, DDL ranks 9th on our list of the best grocery stocks to buy now for recession resistant investing. While we acknowledge the potential for DDL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DDL but trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
Why Target Corporation (TGT) is Among the Best Grocery Stocks to Buy for Recession Resistant Investing
We recently published a list of . In this article, we are going to take a look at where Target Corporation (NYSE:TGT) stands against other best grocery stocks to buy now for recession resistant investing. On April 24, Bryan Spillane, BofA Securities senior consumer analyst, appeared on CNBC's 'The Exchange' to talk about food stocks and how higher costs are weighing on consumers. He said that the biggest incremental headline right now is that costs are a bigger risk than anticipated going into the recent earnings season. Although there is a lot of focus on revenue risk, costs have taken the lead, and tariff risks are also affecting companies across the consumer staples industry. Companies are sending marketing messages to consumers saying that they won't be raising prices, which is something consumers didn't see during COVID-19. These trends are raising concerns about margin pressures across corporate America. Addressing these questions, Spillane said these companies no longer have the ability to price. If there are incremental costs, whether from tariffs or other sources, they will either come from additional cost-cutting or result in margin pressure. Margin pressure is materializing in some major companies in the consumer staples sector, and it is likely to persist into the next quarter as well. READ ALSO: and . These trends raise the question of whether consumer staples are an area of stability amid current market volatility and macroeconomic concerns. Spillane said that this is a very similar dynamic to what we have seen in the last month or so, which is that the stocks have held in relatively well, even though earnings estimates have come down. He further said that we have to be very selective from here onwards. Consumer staple companies that do not have negative earnings revision risks are a decent place to hide amid the current market dynamics. However, he warned that the fundamentals are decelerating for the consumer staple companies. These stocks are likely to remain under pressure if market fundamentals continue the way they are. We discussed the risks of recession looming over the stock market in a recently published article on . Here is an excerpt from the article: Threats of an impending recession are looming over the stock market due to Trump's tariffs and macroeconomic uncertainty. According to CNBC's quarterly CFO Council Survey for Q1 2025, a majority of chief financial officers are of the opinion that the economy is likely to fall into a recession in H2 2025. The CFOs said that they were generally 'pessimistic' about the overall state of the American economy, and expressed uncertainty about the stock market. With the risk of an impending recession deepening, let's look at the 10 best grocery stocks to buy now for recession-resistant investing. Our Methodology We sifted through stock screeners, financial media reports, and ETFs to compile a list of 15 major grocery stocks and chose the top 10 with the highest number of hedge fund holders as of Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey's database. The list is ordered in ascending order of hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (). A woman purchasing groceries at a Target store, with a cart full of Corporation (NYSE:TGT) is a retail giant operating over 2,000 discount department stores and hypermarkets across the US and Canada. It serves its customers various items, including food, everyday essentials, differentiated merchandise at discounted prices, and general merchandise. Its merchandise categories span organic food and beverages, groceries, dairy, and others. The company ranks on our list of the best grocery stocks to buy in a recession. Although Target Corporation's (NYSE:TGT) stock forecast has suffered due to rising tariffs, bulls still see a silver lining. Despite consumer spending shifts, margin pressures, and tariff risks, some analysts believe the company's focus on affordable goods and US-based supply chains may help it combat the current challenges. On April 21, Raymond James upgraded Target Corporation (NYSE:TGT) to Outperform, giving it a vote of confidence. Although the firm's price target wasn't revealed, analysts opined that the company's operational model holds the capacity to weather macro headwinds better than others. The firm's analysts further said they believed in Target Corporation's (NYSE:TGT) core value proposition and pricing power, which help it maintain market share in a challenging environment. Overall, TGT ranks 5th on our list of the best grocery stocks to buy now for recession resistant investing. While we acknowledge the potential for TGT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TGT but trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
Recession Resistant Investing: Is Arko Corp. (ARKO) the Best Grocery Stock to Buy Now?
We recently published a list of . In this article, we are going to take a look at where Arko Corp. (NASDAQ:ARKO) stands against other best grocery stocks to buy now for recession resistant investing. On April 24, Bryan Spillane, BofA Securities senior consumer analyst, appeared on CNBC's 'The Exchange' to talk about food stocks and how higher costs are weighing on consumers. He said that the biggest incremental headline right now is that costs are a bigger risk than anticipated going into the recent earnings season. Although there is a lot of focus on revenue risk, costs have taken the lead, and tariff risks are also affecting companies across the consumer staples industry. Companies are sending marketing messages to consumers saying that they won't be raising prices, which is something consumers didn't see during COVID-19. These trends are raising concerns about margin pressures across corporate America. Addressing these questions, Spillane said these companies no longer have the ability to price. If there are incremental costs, whether from tariffs or other sources, they will either come from additional cost-cutting or result in margin pressure. Margin pressure is materializing in some major companies in the consumer staples sector, and it is likely to persist into the next quarter as well. READ ALSO: and . These trends raise the question of whether consumer staples are an area of stability amid current market volatility and macroeconomic concerns. Spillane said that this is a very similar dynamic to what we have seen in the last month or so, which is that the stocks have held in relatively well, even though earnings estimates have come down. He further said that we have to be very selective from here onwards. Consumer staple companies that do not have negative earnings revision risks are a decent place to hide amid the current market dynamics. However, he warned that the fundamentals are decelerating for the consumer staple companies. These stocks are likely to remain under pressure if market fundamentals continue the way they are. We discussed the risks of recession looming over the stock market in a recently published article on . Here is an excerpt from the article: Threats of an impending recession are looming over the stock market due to Trump's tariffs and macroeconomic uncertainty. According to CNBC's quarterly CFO Council Survey for Q1 2025, a majority of chief financial officers are of the opinion that the economy is likely to fall into a recession in H2 2025. The CFOs said that they were generally 'pessimistic' about the overall state of the American economy, and expressed uncertainty about the stock market. With the risk of an impending recession deepening, let's look at the 10 best grocery stocks to buy now for recession-resistant investing. We sifted through stock screeners, financial media reports, and ETFs to compile a list of 15 major grocery stocks and chose the top 10 with the highest number of hedge fund holders as of Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey's database. The list is ordered in ascending order of hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (). A busy convenience store with customers stocking up on fuel and Corp. (NASDAQ:ARKO) is an independent convenience store operator with four segments: Retail, Wholesale, Fleet Fueling, and GPMP. The company operates its stores under a brand portfolio of more than 25 regional brands, including Admiral, Apple Market, Flash Market, Dixie Mart, 1-Stop, Handy Mart, Jetz, Jiffi Stop, and more. The company is making considerable progress in its dealerization program, exceeding its initial conversion goal by transitioning over 150 retail stores to dealer sites in fiscal year 2024. Arko Corp. (NASDAQ:ARKO) plans to do the same for over 100 stores by the end of fiscal Q1 2025, reflecting its focus on optimizing its retail operations and ranking it eighth on our list of grocery stocks for recession-resistant investing. It also attained a 200 basis point improvement in the OTP category's gross margin in fiscal Q4 2024, further extending the gap between traditional cigarettes and higher-margin OTP products. This highlights Arko Corp.'s (NASDAQ:ARKO) focus on boosting profitability in this segment, which bodes well for its future operations. Overall, ARKO ranks 8th on our list of the best grocery stocks to buy now for recession resistant investing. While we acknowledge the potential for ARKO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ARKO but trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
Recession Resistant Investing: Is Sprouts Farmers Market, Inc. (SFM) the Best Grocery Stock to Buy Now?
We recently published a list of . In this article, we are going to take a look at where Sprouts Farmers Market, Inc. (NASDAQ:SFM) stands against other best grocery stocks to buy now for recession resistant investing. On April 24, Bryan Spillane, BofA Securities senior consumer analyst, appeared on CNBC's 'The Exchange' to talk about food stocks and how higher costs are weighing on consumers. He said that the biggest incremental headline right now is that costs are a bigger risk than anticipated going into the recent earnings season. Although there is a lot of focus on revenue risk, costs have taken the lead, and tariff risks are also affecting companies across the consumer staples industry. Companies are sending marketing messages to consumers saying that they won't be raising prices, which is something consumers didn't see during COVID-19. These trends are raising concerns about margin pressures across corporate America. Addressing these questions, Spillane said these companies no longer have the ability to price. If there are incremental costs, whether from tariffs or other sources, they will either come from additional cost-cutting or result in margin pressure. Margin pressure is materializing in some major companies in the consumer staples sector, and it is likely to persist into the next quarter as well. READ ALSO: and . These trends raise the question of whether consumer staples are an area of stability amid current market volatility and macroeconomic concerns. Spillane said that this is a very similar dynamic to what we have seen in the last month or so, which is that the stocks have held in relatively well, even though earnings estimates have come down. He further said that we have to be very selective from here onwards. Consumer staple companies that do not have negative earnings revision risks are a decent place to hide amid the current market dynamics. However, he warned that the fundamentals are decelerating for the consumer staple companies. These stocks are likely to remain under pressure if market fundamentals continue the way they are. We discussed the risks of recession looming over the stock market in a recently published article on . Here is an excerpt from the article: Threats of an impending recession are looming over the stock market due to Trump's tariffs and macroeconomic uncertainty. According to CNBC's quarterly CFO Council Survey for Q1 2025, a majority of chief financial officers are of the opinion that the economy is likely to fall into a recession in H2 2025. The CFOs said that they were generally 'pessimistic' about the overall state of the American economy, and expressed uncertainty about the stock market. With the risk of an impending recession deepening, let's look at the 10 best grocery stocks to buy now for recession-resistant investing. We sifted through stock screeners, financial media reports, and ETFs to compile a list of 15 major grocery stocks and chose the top 10 with the highest number of hedge fund holders as of Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey's database. The list is ordered in ascending order of hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (). A bright, colorful display of fresh produce in a grocery Farmers Market, Inc. (NASDAQ:SFM) is a specialty natural and organic food retailer that offers a specialty grocery experience. Its products are made of organic, plant-based, gluten-free, and similar lifestyle-friendly ingredients. The company operates around 407 stores in 23 states and takes the sixth spot on our list of the best grocery stocks to buy for recession-resistant investing. On March 17, Deutsche Bank upgraded Sprouts Farmers Market, Inc. (NASDAQ:SFM) to Buy from Hold with a $190 price target. The analyst said the firm holds a 'high conviction' in its growth outlook, primarily because of its differentiated product assortment and a transition to healthier consumer eating trends. The firm told investors in a research note that it had been a fan of the Sprouts Farmers Market, Inc.'s (NASDAQ:SFM) management team and story but was waiting for a more suitable entry point. The company also has strong financials, as it reported a 59.2% growth in net income in fiscal Q4 2024 while net sales rose 17.5% year-over-year. Similarly, net income for the full year grew by 47% to $380 million, while revenues grew by 12.9% to $7.7 billion. This improvement was attributed to broad-based and balanced growth across channels, geographies, baskets, and traffic. Overall, SFM ranks 6th on our list of the best grocery stocks to buy now for recession resistant investing. While we acknowledge the potential for SFM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SFM but trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. 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Yahoo
01-05-2025
- Business
- Yahoo
Why Grocery Outlet Holding Corp. (GO) is Among the Best Grocery Stocks to Buy for Recession Resistant Investing
We recently published a list of . In this article, we are going to take a look at where Grocery Outlet Holding Corp. (NASDAQ:GO) stands against other best grocery stocks to buy now for recession resistant investing. On April 24, Bryan Spillane, BofA Securities senior consumer analyst, appeared on CNBC's 'The Exchange' to talk about food stocks and how higher costs are weighing on consumers. He said that the biggest incremental headline right now is that costs are a bigger risk than anticipated going into the recent earnings season. Although there is a lot of focus on revenue risk, costs have taken the lead, and tariff risks are also affecting companies across the consumer staples industry. Companies are sending marketing messages to consumers saying that they won't be raising prices, which is something consumers didn't see during COVID-19. These trends are raising concerns about margin pressures across corporate America. Addressing these questions, Spillane said these companies no longer have the ability to price. If there are incremental costs, whether from tariffs or other sources, they will either come from additional cost-cutting or result in margin pressure. Margin pressure is materializing in some major companies in the consumer staples sector, and it is likely to persist into the next quarter as well. READ ALSO: and . These trends raise the question of whether consumer staples are an area of stability amid current market volatility and macroeconomic concerns. Spillane said that this is a very similar dynamic to what we have seen in the last month or so, which is that the stocks have held in relatively well, even though earnings estimates have come down. He further said that we have to be very selective from here onwards. Consumer staple companies that do not have negative earnings revision risks are a decent place to hide amid the current market dynamics. However, he warned that the fundamentals are decelerating for the consumer staple companies. These stocks are likely to remain under pressure if market fundamentals continue the way they are. We discussed the risks of recession looming over the stock market in a recently published article on . Here is an excerpt from the article: Threats of an impending recession are looming over the stock market due to Trump's tariffs and macroeconomic uncertainty. According to CNBC's quarterly CFO Council Survey for Q1 2025, a majority of chief financial officers are of the opinion that the economy is likely to fall into a recession in H2 2025. The CFOs said that they were generally 'pessimistic' about the overall state of the American economy, and expressed uncertainty about the stock market. With the risk of an impending recession deepening, let's look at the 10 best grocery stocks to buy now for recession-resistant investing. We sifted through stock screeners, financial media reports, and ETFs to compile a list of 15 major grocery stocks and chose the top 10 with the highest number of hedge fund holders as of Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey's database. The list is ordered in ascending order of hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (). A grocery store employee stocking shelves with fresh fruits and Outlet Holding Corp. (NASDAQ:GO) is a retailer that sells fresh food products and name-brand consumables through an elaborate network of independently operated stores. Its product offerings include fresh meat and seafood, staples, refrigerated and frozen food, and other items. On April 16, Jefferies analyst Corey Tarlowe upgraded the rating on Grocery Outlet Holding Corp. (NASDAQ:GO) and set a price target of $18.00. The analyst supported the positive rating with the company's potential for recovery and growth. Grocery Outlet Holding Corp. (NASDAQ:GO) holds a competitive market advantage because of its position as a low-price grocery store. This holds especially true in economic downturns, where the company could outperform its competitors. The analyst further opined that although the company has experienced challenges with enterprise-wide technology issues in the past, its new management is taking strategic initiatives to resolve these problems and streamline its operations. This presents an opportunity for upside potential. Tarlowe also stated that management's focus on expanding units in existing markets and solid traffic trends are anticipated to support future growth, with expected improvements in EBITDA margins and same-store sales over the coming few years. Overall, GO ranks 7th on our list of the best grocery stocks to buy now for recession resistant investing. While we acknowledge the potential for GO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GO but trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
