If there is any holiday celebrated in the United States that is among the favorite of all citizens, it has to be Independence Day. It transcends all walks of life, and the secular nature of the celebration makes it one for all Americans, honoring 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.
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We at 24/7 Wall St. thought it was a good time to look at top companies that are usually big holiday winners and may be even bigger this year as the celebration falls later in the week. Many may be up for an extended long weekend as the national holiday is set for Tuesday, July 4. Among all the parades, barbecues, boating, bands and much more, many Americans will be going to the store to get provisions for the big day, or heading out for fun vacations to celebrate the nation’s 247th birthday.
We screened our 24/7 Wall St. research database and found five top companies that may have a solid start to the third quarter because of the holiday. While all these stocks 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.
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Coca-Cola
This is a top Warren Buffet holding, as he owns 400 million shares, that not only offers safety but its products will be in all the 4th of July coolers. Coca-Cola Co. (NYSE: KO | KO Price Prediction) is the world’s largest beverage company, refreshing consumers with more than 500 sparkling and still brands.
Led by Coca-Cola, one of America’s most trusted food and drink 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.
Investors receive a 3.04% dividend. Truist Financial has a $75 target price on Coca-Cola stock. The consensus is $69.82, and the final trade on Friday was for $60.22 a share.
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Kraft Heinz
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 menu. Kraft Heinz Co. (NASDAQ: KHC) was formed six years ago via the merger of H.J. Heinz Company and Kraft Foods Group. Buffett holds 325 million shares in the Berkshire Hathaway portfolio.
The company is a leading global food company, with $25 billion in annual revenues generated by such well-known brands as Kraft, Heinz, Oscar Meyer and Maxwell House. It is also one of America’s most trusted food and drink brands.
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The company is the third largest food and beverage manufacturer in North America and derives 76% of revenues from that market and 24% from overseas. The company’s other brands include ABC, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Ore-Ida, Oscar Mayer, Philadelphia, Planters, Plasmon, Quero, Weight Watchers Smart Ones and Velveeta.
Shareholders receive a 4.57% dividend. The BofA Securities price target is $50, and Kraft Heinz stock has a consensus target of $43.97. The shares closed on Friday at $35.50.
Kroger
One of the biggest grocery store chain operators in North America is a solid idea with people flocking to its stores to get ready for the festivities. Kroger Co. (NYSE: KR) operates as a retailer in the United States with a focus on combination food and drug stores, multi-department stores, marketplace stores and price impact warehouses.
Its combination 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.
Kroger 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.
Kroger stock comes with a 2.49% dividend. BofA Securities has set its target price at $65. The $50.92 consensus target is closer to Friday’s close at $47.00.
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Molson Coors
This iconic American beer company did merge with a Canadian beer giant, but it is still based in Denver. 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.
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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 brand was a huge winner in the Bud Light marketing fiasco. The company is now working on opportunities to market a cannabis-infused product.
The dividend yield here is 2.49%. The $70 UBS price target is well above the consensus target of $66. Molson Coors Beverage stock closed trading at $65.84 on Friday.
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PepsiCo
This top consumer staples company will be supplying the goods for summer picnics and outdoor holiday fun. 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 Pearl Milling mixes and syrups, 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 2.72% dividend. PepsiCo stock has a $210 price target at Morgan Stanley. The consensus target is $200.82, and shares closed most recently at $176.76.
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These five all-American companies should have solid 4th of July sales and are poised to continue to be outstanding investments for the second half of 2023. With second-quarter earnings right around the corner, it may be smart to buy partial positions now and see how the results come in.
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