I haven’t drunk alcohol in over 20 years.
But I’m an outlier in the U.S.
Alcoholic beverages are in vogue:
The chart above shows how much alcohol folks in the U.S. drink.
In 2020, we consumed 3% less than the previous year.
By 2025, the amount will increase 16%.
Today’s Power Stock will benefit from the increase: MGP Ingredients Inc. (Nasdaq: MGPI).
MGP Ingredients makes distilled and branded alcohol (think vodka, gin, whiskey and bourbon).
Its five distilleries produce popular products including:
- Saint Brendan’s Irish Cream.
- Everclear Grain Alcohol.
- Yellowstone Kentucky Straight Bourbon Whiskey.
MGPI stock scores a “Strong Bullish” 97 out of 100 on our Stock Power Ratings system, and we expect it to beat the broader market by 3X in the next 12 months.
MGPI Stock: Phenomenal Growth + Strong Quality
MGP Ingredients' first quarter this year was outstanding.
Here are two high points:
- The company reported sales of $195.2 million — an 80.2% increase over the same quarter a year ago.
- Its net income was $37.4 million — skyrocketing 142.2% from the same quarter last year.
As you can see, Kansas-based MGPI is a top-notch growth stock — scoring a 98 on that metric in our Stock Power Ratings system.
MGPI’s one-year annual sales growth rate is a strong 58.5%, and its earnings-per-share (EPS) growth rate is an excellent 82.4%.
This is a high-quality company, with a return on equity of 23.5% — trouncing the food and beverage production industry average of negative 1.1%.
Since June 2021, MGPI stock has climbed 46.6%, crushing its peers, which have gained a paltry 2.7% in that time.
It hit its 52-week high in May and is 12% away from reaching it again.
I think it can set a new high in the coming weeks.
MGP International stock scores a 97 overall on our proprietary Stock Power Ratings system.
That means we’re “Strong Bullish” and expect it to beat the broader market by at least three times in the next 12 months.
Americans love their spirits, and consumption will reach a 13-year high by 2025.
With sales and earnings already up, MGPI is set to take full advantage of this trend. I have high conviction this stock will make a solid addition to your portfolio.
Bonus: MGPI’s forward dividend yield is 0.5%, so it pays shareholders $0.48 per share, per year.
Stay Tuned: “Strong Bullish” Chemicals Co.
Remember: We publish Stock Power Daily five days a week to give you access to the top companies that our proprietary Stock Power Ratings identify.
Stay tuned for the next issue, where I’ll share all the details on a solid company that makes fuel additives.
Matt Clark, CMSA®
Research Analyst, Money & Markets
P.S. Don’t forget to check out The Stock Power Podcast, where I dive deep into one of our “Strong Bullish” Power Stocks. Check out the podcast on our YouTube channel or your favorite podcast provider.