#7 - Elanco Animal Health (NYSE:ELAN)
The last of the food stocks we’re inviting you to look at is Elanco Animal Health (NYSE:ELAN). The amount of money being spent on pet health continues to increase. And Elanco is a “pharmaceutical company that produces medicines and vaccinations for pets and livestock.” The company has 125 brands that are sold in over 90 countries. And according to the company’s website, it is in the top four in all of its major markets.
The stock has been affected by the pandemic as many pet owners have been unable or unwilling to take their pets to the vets. Because of this, ELAN stock is up just 9% for the year. However, a better barometer for the stock may be its performance post-pandemic. The stock is up over 90% since the onset of the pandemic. And analysts love the stock and give it a consensus buy rating with a price target that suggests it may climb over 10% from its current level.
About Elanco Animal Health
Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals. It offers pet health disease prevention products, such as parasiticide and vaccine products that protect pets from worms, fleas, and ticks under the Seresto, Advantage, Advantix, and Advocate brands; pet health therapeutics for pain, osteoarthritis, ear infections, cardiovascular, and dermatology indications in canines and felines under the Galliprant and Claro brands; vaccines, antibiotics, parasiticides, and other products for use in poultry and aquaculture production, as well as nutritional health products, including enzymes, probiotics, and prebiotics; and a range of vaccines, antibiotics, implants, parasiticides, and other products used in ruminant and swine production under the Rumensin and Baytril brands.
Read More - Current Price
- $11.63
- Consensus Rating
- Hold
- Ratings Breakdown
- 3 Buy Ratings, 4 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $16.71 (43.7% Upside)
As investors search for opportunities in 2021, the food solutions market should not be overlooked. By 2025, the global market may rise to $300 billion. Much of this will be due to advances in plant-based products, different methods for food delivery, farming, and animal health.
A new generation of consumers is very interested in where their food comes from. And that is making this a profitable area for innovation that will be rewarded by consumers. However, this also means that you have to pay attention to the valuation of these stocks. Some stocks, like Beyond Meat, maybe overvalued at its current level. However, there are other alternatives for consumers who are looking for value.
Beyond the innovation angle, there is another reason to consider buying food stocks right now. These tend to be defensive stocks. Yes, the market is likely to arise from a future stimulus. But with the possibility of a slower economic recovery, possibly enhanced by targeted lockdowns, this is an area to consider for finding value.
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