#7 - MGP Ingredients (NASDAQ:MGPI)
MGP Ingredients Inc. (NASDAQ: MGPI) is a small-cap stock that analysts love. In addition to providing its own portfolio of distilled spirits, MGP Ingredients, as its name suggests, provides the ingredients, in this case, food-grade alcohol, for other spirits providers as well as other applications, including personal care, cleaning, and pharmaceutical. It also provides specialty wheat starches for food applications.
MGPI stock took a sharp turn lower in October 2024 after the company announced it was cutting back production to focus on its own portfolio of brands, citing weakness in the brown goods category, specifically whiskey. Another bearish factor to consider is the short interest on the stock which is over 27%.
However, while analysts have been lowering their price targets for the company’s stock, it still has a consensus price target of $76.67 as of November 18, 2024. That would be a 56.8% gain for investors who can buy the stock for less than $50 per share.
About MGP Ingredients
MGP Ingredients, Inc, together with its subsidiaries, engages in the production and supply of distilled spirits, branded spirits, and food ingredients in the United States and internationally. The company operates through three segments: Distillery Solutions; Branded Spirits; and Ingredient Solutions.
Read More - Current Price
- $46.14
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 3 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $76.67 (66.2% Upside)
Despite the fact that some of these stocks have underperformed the market in 2024, alcohol stocks are still considered defensive stocks. This means that they tend to perform well even at times when the economy is not firing on all cylinders. That's particularly true of “sin stocks" that cover areas like alcohol, tobacco, and gambling.
That's why investors may want to consider investing in alcohol stocks, as the economy is expected to accelerate in 2025. However, if you're looking to invest in this sector, you'll want to look at individual stocks.
Alcohol stocks are part of the consumer staples sector. However, there's no exchange-traded fund (ETF) dedicated exclusively to alcohol stocks. Nevertheless, if you're uncomfortable with investing directly in alcohol stocks, you can buy shares of the Consumer Staples Select Sector SPDR Fund (NYSEARCA: XLP) which includes many of the largest alcohol stocks.
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