This summer, expect to see the beverage sector heat up, so let’s cover some top stocks to buy, suggests Louis Navellier of Blue Chip Growth.

It’s all about beating the heat and the market this summer. With the indexes on a six-week downward slide, you need a diverse portfolio of stocks that can preserve your capital on the down days and rally on up days.

You can’t have a conversation about beverage stocks without covering Coca-Cola (KO) and Pepsico (PEP), so we’ll start there.

It used to be a battle between Coke and Pepsi, but it has become so much more. With each company owning a wide variety of other brands, it doesn’t matter who wins the soft-drink taste test anymore.

Coke makes more than 3,500 different beverages, including Dasani water, Fanta, Fresca, Full Throttle energy drinks, Minute Maid, and Powerade.

Pepsi boasts brands like Frito-Lay, Doritos, Tostitos, Cheetos, Fritos, and Cracker Jack. And don’t forget Quaker oatmeal, Aunt Jemima mixes and syrups, Life cereal, Rice-A-Roni, Pasta Roni, and Near East side dishes.

Both of these stocks are buys, but if I had to pick one, it would be KO. KO stock has the bigger support and better fundamentals this quarter. I like both companies, but KO is the best bet if you can only buy one.

The other three companies I want to talk about aren’t as well known as Coke and Pepsi, but they're worth your attention.

Hansen Natural Corp. (HANS) is an old favorite of mine. I recommended the stock in 2004, and sold it three years later for an incredible 1,125% gain. This is the company behind Hansen’s natural soda and the incredibly popular Monster Energy drinks.

HANS is coming off a strong three-month run. With recent earnings surprises and analysts upping EPS estimates in the last few weeks, I think the company could go on another spectacular run.

National Beverage Corp. (FIZZ), like Coke, owns a number of different beverages. Its products include soft drinks Shasta and Faygo, juice drinks Everfresh, Home Juice, and Pure, and water varieties under the LaCroix, Crystal Bay, and ClearFruit brands.

The stock has been in a tight trading range, but the shares are prone to big moves around earnings. A solid report next quarter could really get this B-rated company moving.

Finally, Diageo PLC (DEO) has adult beverages for every taste.

This is the company responsible for Johnnie Walker, Smirnoff, Baileys Original Irish Cream, Captain Morgan, Jose Cuervo, Tanqueray gin, and Guinness stout—and that’s just some of the alcoholic beverages. There are also a number of wines under the Diageo name.

The stock has been on a nice climb year to date, and it even pays a 2.4% dividend.

Subscribe to Blue Chip Growth here…

Related Reading:

Related Articles
  1. Personal Finance

    A Day in the Life of an Equity Research Analyst

    What does an equity research analyst do on an everyday basis?
  2. Mutual Funds & ETFs

    ETF Analysis: PowerShares S&P 500 Downside Hedged

    Find out about the PowerShares S&P 500 Downside Hedged ETF, and learn detailed information about characteristics, suitability and recommendations of it.
  3. Mutual Funds & ETFs

    ETF Analysis: ProShares Large Cap Core Plus

    Learn information about the ProShares Large Cap Core Plus ETF, and explore detailed analysis of its characteristics, suitability and recommendations.
  4. Mutual Funds & ETFs

    ETF Analysis: iShares Core Growth Allocation

    Find out about the iShares Core Growth Allocation Fund, and learn detailed information about its characteristics, suitability and recommendations.
  5. Mutual Funds & ETFs

    ETF Analysis: iShares MSCI USA Minimum Volatility

    Learn about the iShares MSCI USA Minimum Volatility exchange-traded fund, which invests in low-volatility equities traded on the U.S. stock market.
  6. Stock Analysis

    Should You Follow Millionaires into This Sector?

    Millionaire investors—and those who follow them—should take another look at the current economic situation before making any more investment decisions.
  7. Professionals

    What to do During a Market Correction

    The market has corrected...now what? Here's what you should consider rather than panicking.
  8. Mutual Funds & ETFs

    ETF Analysis: Vanguard Mid-Cap Value

    Take an in-depth look at the Vanguard Mid-Cap Value ETF, one of the largest and most popular mid-cap funds in the U.S. equity space.
  9. Mutual Funds & ETFs

    ETF Analysis: Schwab US Broad Market

    Take an in-depth look at the Schwab U.S. Broad Market ETF, an incredibly low-cost fund based on a wide selection of the U.S. equity market.
  10. Professionals

    Tips for Helping Clients Though Market Corrections

    When the stock market sees a steep drop, clients are bound to get anxious. Here are some tips for talking them off the ledge.
RELATED TERMS
  1. Equity

    The value of an asset less the value of all liabilities on that ...
  2. Fractal Markets Hypothesis (FMH)

    An alternative investment theory to Efficient Market Hypothesis ...
  3. Hard-To-Sell Asset

    An asset that is extremely difficult to dispose of either due ...
  4. Sucker Yield

    When an investor has essentially risked all of his capital for ...
  5. PT (Perseroan Terbatas)

    An acronym for Perseroan Terbatas, which is Limited Liability ...
  6. Ltd. (Limited)

    An abbreviation of "limited," Ltd. is a suffix that ...
RELATED FAQS
  1. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  2. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  3. How does additional paid in capital affect retained earnings?

    Both additional paid-in capital and retained earnings are entries under the shareholders' equity section of a company's balance ... Read Full Answer >>
  4. What types of capital are not considered share capital?

    The money a business uses to fund operations or growth is called capital, and there are a number of capital sources available. ... Read Full Answer >>
  5. What is the difference between issued share capital and subscribed share capital?

    The difference between subscribed share capital and issued share capital is the former relates to the amount of stock for ... Read Full Answer >>
  6. What happens to the shares of stock purchased in a tender offer?

    The shares of stock purchased in a tender offer become the property of the purchaser. From that point forward, the purchaser, ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!