#7 - Mission Produce (NASDAQ:AVO)
Mission Produce Inc. (NASDAQ: AVO) is a niche food company that is the leader in the global avocado business. Avocadoes are associated with heart, weight, and skin health at a time when consumers, particularly in the coveted millennial and Gen-Z markets, are seeking healthy food options. And while a significant amount of that growth has come from the United States and Mexico, the company is forecasting significant growth to come from Canada, Mexico and the Asia-Pacific region in coming years.
AVO stock has only been trading publicly since 2021 which was right around the time when businesses reopened. That was unfortunate for early investors. However, the stock is up 14% in the 12 months ending in February 2025 and could be setting up for significant growth.
About Mission Produce
Mission Produce, Inc engages in the sourcing, farming, packaging, marketing, and distribution of avocados, mangoes, and blueberries to food retailers, distributors, and foodservice customers in the United States and internationally. The company operates through three segments, Marketing and Distribution; International Farming; and Blueberries.
More- Current Price
- $12.33
- Consensus Rating
- Buy
- Ratings Breakdown
- 2 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $15.50 (25.8% Upside)
You've seen the scope and the opportunity available in food stocks. But like many consumer-facing stocks, food companies are feeling the impact of inflation. And analysts note how history shows that once food prices move higher, they become entrenched in the economy.
Plus, these companies have supply chains that are susceptible to changes in monetary policy, weather, and geopolitical concerns. When you combine those issues with consumers who are becoming more health conscious, you start to understand the opportunities and the risks for investors in food stocks.
And buying stocks under $20 carry risks of their own. It's important to note that many low-priced stocks carry that low share price for a reason. MarketBeat provides a list of stocks under $20 that have received Strong Buy or Buy ratings from analysts. Positive analyst sentiment, to go along with a low price, can be a key to finding hidden gems in the market.
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