Best food stocks: 12 Best Food Stocks To Buy Now

Even in the case of food, higher prices dampen demand and encourage more investment in supply. Both sales and earnings are critical factors in the success of a company. Companies with quarterly EPS or revenue growth of more than 1,000% were excluded as outliers.

General Mills stock has soared over the past couple of years, but it remains reasonably priced. The stock trades for around 19 times forward earnings, and it sports a dividend yield of roughly 2.85%. There’s plenty of economic uncertainty right now, but General Mills’ pricing power should help see it through.

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We have arranged the list according to the hedge fund sentiment around the securities, which was assessed from Insider Monkey’s Q database of 895 elite hedge funds. The global food market generated over $8.27 trillion in sales in 2021, an increase of more than $500 billion from the previous year. According to the Statista Consumer Outlook, global food sales will continue to rise over the next few years and will reach over $11.1 trillion in 2027. At a growth rate of 9.7%, the size of the global food and beverage industry is predicted to increase from $5.8 trillion in 2021 to $6.4 trillion in 2022. The market for food and beverages is anticipated to reach $8.9 trillion in 2026, growing at a compound annual growth rate of 8.7%.

Unit volumes rose in every geographic region, and the company faced no resistance boosting overall pricing by nearly 5%. Having a stable of iconic brands that consumers are unlikely to abandon sets up Mondelez well for an inflationary environment. Tyson certainly doesn’t have the pricing power of a packaged food company with well-known brands, given that meat is largely a commodity.

Gainy is a stock screener app that can become your handy guide to the world of investing. We offer you the most suitable stocks to own, depending on your investing goals and interests. The main specialization is oilseeds and grain crops for the production of protein flour. Bunge also produces sugar and ethanol from sugarcane, wheat, corn and fertilizers.

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But the quality of the company’s brands certainly justifies a premium valuation. General Mills’ pet segment, the result of the 2018 acquisition of Blue Buffalo, is particularly well positioned. Pet ownership boomed during the pandemic, and sales of premium pet foods have been on the rise for years. With pets increasingly viewed as part of the family, pet owners may be reluctant to trade down to cheaper pet food options.

The meat industry has largely recovered from the challenges of plant shutdowns and COVID-19 outbreaks early in the pandemic. While inflation may lead consumers to choose cheaper cuts or reduce meat consumption, that’s not happening so far. Despite double-digit price increases across all of its categories in the second quarter of fiscal 2022, Tyson’s sales held up just fine, and profitability improved. See the best food stocks to buy now, according to analyst forecasts for the packaged foods industry. All investments involve risk, and the past performance of a security or financial product does not guarantee future results or returns.

Food stocks — which include agriculture, manufacturing, packaged goods and grocers — are one area of the market that’s doing well. Thorne Healthtech stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Thorne Healthtech, 50% have issued a Strong Buy rating, 50% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell. Thorne Healthtech has an average 1 year price target of $6.00, an upside of 31.58% from Thorne Healthtech’s current stock price of $4.56. Darling Ingredients stock has a consensus Strong Buy recommendation according to Wall Street analysts. Darling Ingredients has an average 1 year price target of $92.88, an upside of 62.82% from Darling Ingredients’s current stock price of $57.04.

The company is traded at around a 20% discount considering its EV/EBITDA. The Coca-Cola Company manufactures, retails, and markets nonalcoholic beverage concentrates and syrups, as well as alcoholic beverages. Some of the brands are Fanta, Sprite, MinuteMaid, Fuze Tea, Dasani, and SmartWater. Coca-Cola is one of the oldest Dividend Aristocrats and is valued by many conservative investors for this. PepsiCo trades for around 26 times forward earnings, which is not exactly cheap.

Food stocks as an inflation hedge

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The benchmark figures above are as of April 13, while all numbers in the tables below are as of April 10, 2023. For the most part, grocery stores have a limited ability to pass off higher costs to consumers. Inflation may put some pressure on grocery industry profits, but that’s not a reason to avoid the industry entirely.

The app allows you to create personalized collections such as the best food stocks, USA Fintech, or Mid-cap stocks. Our analytic toolkit provides each customer with customized information and shows just the stocks they can potentially be interested in. In-app functionality and filters offer the possibility to arrange and customize all needed data in one place. The powerful search helps to find out everything about food sector stocks, ETF, cryptocurrency, investment idea, and collections that users like to invest in. These are the food stocks with the lowest 12-month trailingprice-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you’re paying less for each dollar of profit generated.

It has underperformed other stocks in the food industry by -4 percentage points. It has overperformed other stocks in the food industry by 22 percentage points. Beyond Meat is a Los Angeles-based producer of plant-based meat substitutes founded in 2009. After a very successful IPO in 2019 the company managed to scale up to 80 countries. Buying this company is an investment into a more sustainable and healthy future. Tyson is suffering lately as consumers move to cheaper cuts of meat — or to no meat at all — as a way to deal with inflation.

The stock has taken a huge hit, but Beyond Meat is a stock to consider if you believe in the long-term potential of plant-based protein. Gainy app creates stock lists and categories based on the NASDAQ Composite and current market information. There is a pool of companies that are always on the list of food stocks to buy now.

Food stocks were down -0.1% in the last day, and up 0.61% over the last week. Smart For Life was the among the top losers in the packaged foods industry, dropping -22.4% yesterday. B&G Foods is an American holding company for branded foods founded in 1889 to sell pickles, relish and condiments.

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There’s a limit to PepsiCo’s pricing power, but the company hasn’t found it yet. The best food companies have strong brands that compel consumers to pay up for their products, and they also enjoy economies of scale that keep costs low. Pricing power and cost advantages are particularly important now, with inflation squeezing budgets and supply chain costs rising. The big question is whether food companies will continue to benefit from rising prices. The U.S. Department of Agriculture maintains an “All Farm Index” of prices paid for U.S. crops. The index then shot up between mid-2020 and late 2022, from 110 to 137, but the curve is leveling off.

Food industry is comprised of companies that produce food and non-alcoholic beverages. Food companies are considered among the most stable because trends can change on the stock market but we won’t stop consuming food and the demand for it is quite predictable. Hence, for the sake of stability of the portfolio investors add food stocks. For example, Warren Buffet has shares of Coca-Cola and Kraft Heinz, which you will find in our list of top food stocks. We selected the following food stocks based on optimistic analyst ratings, strong hedge fund sentiment, and future growth potential.

An investor can target commodities, restaurants, food suppliers, equipment manufacturers, logistics and shipping companies, and many others, all within the broader food industry. While General Mills, Tyson Foods, Mondelez International, and PepsiCo are great overall picks in the food industry, companies in more specialized sectors are worth a look as well. The company’s focus is on snack brands, and it sells products in more than 150 countries. The COVID-19 pandemic benefited General Mills as consumers increased their consumption of food at home due to restrictions on restaurant dining. The company’s core North America retail segment, driven by strength in organic products, meals, and baking, performed well throughout the pandemic.

The Kraft Heinz Company (NASDAQ:KHC)

They offer a balanced diet in a time when sectors like technology can upset even the strongest stomachs. The stock stumbled in December after it reported quarterly earnings that didn’t meet analysts’ high expectations. But the shares have nearly tripled in the past 10 years and currently yield more than 5%. The stock is well priced, with a forward price-earnings ratio of 17, based on analysts’ estimates for the fiscal year ending in May 2024.