Home Hedge Funds 2 “Strong Buy” Consumer Defensive Stocks Hedge Funds Are Buying

2 “Strong Buy” Consumer Defensive Stocks Hedge Funds Are Buying


At TipRanks, we provide our investors with several tools to help them select the right stocks. One such tool is the Top Hedge Fund Managers, with which investors can track the investment decisions of leading financial experts. Today, we have focused on two stocks from the consumer defensive sector: Constellation Brands (NYSE:STZ) and The Vita Coco Company (NASDAQ:COCO). Both stocks carry a “Strong Buy” rating and were bought by hedge funds in the last quarter.

Let’s take a closer look.

Constellation Brands

Constellation Brands produces and markets beer, wine, and spirits, including popular brands like Corona, Modelo, and Robert Mondavi. The company’s focus on growing its international presence and improving beer sales is expected to support its performance. 

Importantly, STZ stock has a “Very Positive” signal from TipRanks’ Hedge Fund Trading Activity tool. Per the tool, hedge funds bought 443,300 shares of this beverage maker last quarter. According to the tool, popular hedge fund managers, including Fisher Asset Management’s Ken Fisher and Bridgewater Associates’ Ray Dalio, increased their positions in the stock.

Should I Buy or Sell STZ?

Constellation Brands stock has a Strong Buy consensus rating based on 15 Buys and two Holds. Further, the average price target of $295.56 implies a 17% upside potential to current levels. Over the past year, STZ shares have gained 10.3%.

Supporting the bull case, the stock has a Smart Score of “Perfect 10” on TipRanks.

The Vita Coco Company

Vita Coco is a beverage company known for its coconut water products. The company’s strategy to focus on a niche market helped it successfully operate within the competitive beverage industry. Its diversification strategy should further solidify its position in the market.

Interestingly, the stock has a “Positive” signal from TipRanks’ Hedge Fund Trading Activity tool. The tool shows that hedge funds bought 223,900 shares of this company in the last quarter. Our data shows that Graham Capital Management’s Kenneth Tropin and Gilder Gagnon Howe & Co.’s Travis Knapp Anderson were among the hedge fund managers who increased their exposure to COCO stock. 

Is COCO Stock a Buy?

Wall Street is bullish about COCO stock. It has received three Buy and one Hold recommendations, translating into a Strong Buy consensus rating. The analysts’ average price target of $29 implies a 44.6% upside potential. Shares of the company have gained 46.5% in the past year.

Concluding Thoughts

The impressive track record of hedge fund managers may encourage investors to adopt their portfolio allocation strategy. For more ideas on Top Expert Picks, investors can visit the TipRanks Expert Center and make informed investment decisions.


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