S&P 500   4,544.90
DOW   35,677.02
QQQ   374.10
S&P 500   4,544.90
DOW   35,677.02
QQQ   374.10
S&P 500   4,544.90
DOW   35,677.02
QQQ   374.10
S&P 500   4,544.90
DOW   35,677.02
QQQ   374.10

2 Pandemic Winners You Can Own Forever

Thursday, October 14, 2021 | Thomas Hughes
2 Pandemic Winners You Can Own Forever

These Growing Companies Will Post Record Revenue

Pandemic winners like Freshpet and Graphic Packaging Holding Company have produced robust returns for shareholders since the peak of the scare. While the pandemic is still with us, it is subsiding but not the tailwinds driving these stocks. In the case of Freshpet, America's love of their pets and the ever-increasing dollar value assigned to them is driving robust growth that should last for several more quarters if not several more years. In the case of Graphic Packaging Holding Company, consumer trends suggest business will remain strong far into the future. In both cases, the analysts see opportunity and so do we.

A Double Upgrade For Freshpet

Freshpet (NASDAQ: FRPT) is an interesting story because during the pandemic demand for its product was so high it literally could not keep up with the business. In many places, Freshpet cases were empty and stayed empty for weeks if not months but that problem is being resolved. The company has been aggressively expanding its capacity and that should be seen in both the revenue and earnings this quarter. The analysts are expecting over $116 million in revenue which will be good not only for 38% year-over-year growth but for an acceleration of growth from the previous quarter and a company record.

The analysts rate the stock a buy and that sentiment is getting stronger. The company just got two upgrades to buy from hold and each with a price target of $175. The $175 target matches the Marketbeat.com consensus estimate but it is a bit shy of the high price target of $229. Regardless, the consensus estimate is worth nearly 25% of upside and that is likely just the beginning of a much larger move. With revenue growing and accelerating shares of Freshpet could easily exceed the current all-time high of $180 and continue to trend higher along with revenue and earnings growth.

Two (2) Pandemic Winners You Can Own Forever

Graphic Packaging Holding Company Is In Demand

Graphic Packaging Holding Company’s (NYSE: GPK) revenue and earnings show virtually no impact from the pandemic because of the fundamental nature of the business. The company makes packaging products for food and beverage items and consumer goods of all variety and its business is supported by robust consumer spending as well as increasing use of e-commerce. Revenue has been growing on a sequential basis for several quarters and topped pre-pandemic levels long ago. The analysts are expecting revenue to set a company record this quarter and we see upside risk in the numbers. Demand for consumer goods is high across most verticals and should drive results above consensus.

The analyst activity in Graphic Packaging Holding Company is truly exciting because the company is getting upgraded and attracting new analysts. The company recently got one double upgrade to Outperform from Neutral in tandem with four initiated ratings that amount to a Firm/Strong Buy. The current consensus estimate assumes about 16% upside but the high price target of $26 assumes 33% upside and we see the consensus estimates moving higher. The Marketbeat consensus price target for Graphic Packaging Holding Company is up nearly 100% in the last 12 months and nearly 6% in the last 30 days alone. Shares of the stock are up nearly 100% in that time as well and we see the uptrend continuing. Graphic Packaging holding company also pays a very safe 1.6% dividend yield. 

Two (2) Pandemic Winners You Can Own Forever

Should you invest $1,000 in Freshpet right now?

Before you consider Freshpet, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Freshpet wasn't on the list.

While Freshpet currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here

 


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Freshpet (FRPT)2.2$153.13-0.9%N/A-364.60Buy$176.29
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