High-growth consumer snacking/drink brands are looking quite interesting as some investors opt to look away from some of the loftiest parts of the tech sector in search of something richer with value. When it comes to consumer staple stocks to snack on, it’s tough to top some of the smaller disruptors in the space (such as UTZ, CELH, and BRBR) as they look to nibble away at the market share of the mega-cap leaders.
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Undoubtedly, the large-cap snack and beverage companies have been incredibly dominant over the years, with moats previously considered impenetrable. With the rise of intriguing new brands catering to younger consumers hungry for something healthy and tasty, it’s not too far-fetched to think that the tables may be turned in favor of the smaller, perhaps hungrier disruptors, even as GLP-1 drugs weigh on the appetite for snacking on the whole.
Therefore, let’s check in with TipRanks’ Comparison Tool to weigh in on three intriguing high-growth snack/beverage plays that investors may wish to snack on themselves.
Utz Brands (NASDAQ:UTZ)
Utz Brands has made quite the mark on the salty and savory snack scene in recent years. Though UTZ stock may be a public markets newcomer, having landed just a few years ago, I view the firm as having the high-quality product and long-term growth strategy (5-6% organic sales growth expected through Fiscal Year 2026) required to take market share in the snacking scene.
At this juncture, the stock seems priced with growth in mind, with shares going for just shy of 85 times trailing price-to-earnings (P/E). Still, many big names on Wall Street view the stock as undervalued, given potential catalysts on the horizon. I’m inclined to agree with analysts and am staying bullish on the name.
Apart from the Strong Buy rating from the analyst community, Utz also has a massive fan in Needham, who recently praised Utz as worthy of its “Conviction List.” Not only is Utz rated a Buy, but it’s also a high-conviction Buy as the firm continues firing on all cylinders.
According to Needham, which has a $20.00 price target on the stock, Utz’s “marketing consolidation” and “more-targeted product portfolio” are reasons to get behind the stock. Additionally, Mizuho points out that UTZ stock is also one of the few salty snacks pure-plays out there worth pursuing. I think analysts are right on the money. Utz stock deserves a premium, not just a growth premium, but a scarcity premium.
What Is the Price Target on UTZ Stock?
Utz stock is a Strong Buy, according to analysts, with seven Buys and one Hold assigned in the past three months. The average UTZ stock price target of $19.38 implies 3.8% upside potential.
Celsius Holdings (NASDAQ:CELH)
The healthy and tasty beverage scene has been scorching lately, with social media influencers like Logan Paul and KSI disrupting the sport and energy drink market with Prime. Celsius is another player on the scene that’s been a hit among consumers who are looking for delicious drinks that aren’t filled with sugar, corn syrup, aspartame, and other sweeteners that seem to have a bad rap. Undoubtedly, Celsius shows that you don’t need to sacrifice taste when cutting sugar (and other unpopular sweeteners) out of the equation.
Although the stock is getting expensive again after its glorious 28% pop this month, I’m a big believer in the brand and its ability to continue taking share in the beverage scene. For that reason, I have to stay bullish.
Also, it’s hard to be bearish when you have Piper Sandler stepping up a month ago, when the stock was in a bit of a funk, calling CELH stock the best growth story in the consumer space. The analyst firm was spot-on. The stock has been surging since back around the same time Piper analyst Michael Lavery pounded the table on the name.
Though Lavery is a bull, with a Street-high price target of $76.00 (that implies almost 20% upside from current levels), he’s not at all an unrealistic one, with expectations that growth will slow (to 40-45% this year). With the tools to take more market share, though, don’t expect growth to drop off by much more as the firm looks to keep its disruptor hat on. Recently, the firm launched a line of products to the Canadian market, a move that could easily jolt growth and give Prime a good run for its money.
What Is the Price Target on UTZ Stock?
Celsius Holdings stock is a Strong Buy, according to analysts, with six Buys and two Holds assigned in the past three months. The average CELH stock price target of $69.50 implies 9.4% upside potential.
BellRing Brands (NASDAQ:BRBR)
With its protein focus, BellRing Brands has to be one of the healthiest snacking plays on the planet. The firm behind PowerBars and Premier Protein may be a relative newcomer to the public market scene since landing back in 2019, but it’s shown us all the power of protein in today’s increasingly health-conscious world.
Now, the business of protein drinks, bars, and powders can be tough to compete in. Not only do you need a tasty product that’s packed with nutrition, but you also need top-notch manufacturing capabilities and impressive marketing to stay ahead of the pack.
Fortunately, BellRing Brands seems to have everything down to stay dominant in the competitive protein scene. With a well-known line-up of brands (almost everybody at the gym knows about the iconic PowerBar) and an aggressive growth strategy (new products, including plant-based protein powders, and geographic expansion potential), it’s hard not to be bullish as BRBR stock continues its incredible run.
The stock is up more than 75% in the past year, and though shares have come in by around 9% since its February 2024 high, I view the decline as more of an opportunity than a red flag. With impressive growth drivers poised to power earnings from here, BRBR is a name to hang onto for the long haul.
What Is the Price Target on BRBR Stock?
BellBring stock is a Strong Buy, according to analysts, with 10 Buys and three Holds assigned in the past three months. The average BRBR stock price target of $60.50 implies 10.6% upside potential.
The Takeaway
The snack and fizzy beverage scene may be low-tech, but it’s clearly full of growth potential. As the tech trade sours, don’t count on the following consumer growth darlings to sink as well. Of the trio, analysts expect the most upside potential from BRBR (10.6%).
