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2 Agriculture - Products Stocks to Buy From the Promising Industry
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The Zacks Agriculture - Products industry will benefit from the stable demand for food, supported by an increasing population. Rising consumer awareness regarding food ingredients and the preference for healthier options will drive industry expansion. Alternative and innovative agricultural technologies, such as hydroponics and vertical farming, are expected to serve as significant growth drivers due to their inherent advantages.
Companies like Bunge Global S.A (BG - Free Report) and GrowGeneration (GRWG - Free Report) are poised to gain from strong end-market demand and their ongoing growth initiatives aimed at capitalizing on these trends.
Industry Description
The Zacks Agriculture – Products industry comprises companies that are either involved in storing agricultural commodities, distributing ingredients to others or engaged in farming crops, livestock and poultry products. Some are associated with purchasing, storing, transporting, processing and selling agricultural commodities or products derived from the same. They operate grain elevators, wherein income is generated from commodities bought and sold using these elevators or held as inventory. Some companies provide nutrients, advanced indoor and greenhouse lighting, environmental control systems, and accessories for hydroponic gardening — the method of growing plants using mineral nutrient solutions in a water solvent instead of soil. A few players offer innovative, plant-based health and wellness products. Companies producing lumber also fall under this industry.
Trends Shaping the Future of the Agriculture - Products Industry
Solid Demand to Support Industry: The demand for food is directly influenced by population and demographic changes beside income growth and income distribution. Per the United Nations, the global population will rise to 8.5 billion in 2030 and 9.7 billion in 2050. This would lead to a 50% increase in global food demand. In response to growing consumer demand for healthier food alternatives, several agricultural and food-based companies are investing in innovation, and augmenting their product and market strategies to bring new quality and healthy food ingredients to the market. Ongoing improvements in grain-handling techniques and investment in larger storage spaces will likely support the industry. Plus, stable earnings across all cycles are ensured, considering the industry’s products are always in demand, irrespective of the condition of the economy.
Hydroponics & Cannabis Act as Key Catalysts: Hydroponics is gaining popularity as it gives growers the ability to regulate and manage nutrient delivery, light, air, water, humidity, pests and temperature in an indoor setting. This method enables faster crop growth, with higher yields than traditional soil-based cultivation. It is being utilized in new and emerging industries, including the cultivation of cannabis and hemp. Vertical farms producing organic fruits and vegetables also utilize hydroponics due to the shortage of farmland and environmental vulnerabilities. Vertical farming is the latest agricultural technology, wherein shelves and artificial lighting systems are used to grow produce, thereby minimizing land and water usage. In the United States, the legalization of cannabis for medical and recreational use across multiple states has established it as the world’s largest cannabis market. Globally, momentum toward legalization is also building, opening the door to international expansion. These developments present meaningful long-term growth opportunities for the industry.
Cost-Saving Actions to Aid Margins: Players in the industry are facing rising labor, packaging and distribution costs, among others. Companies engaged in animal products have been facing increasing production costs for a while due to elevated feed ingredient prices. However, feed prices have eased lately. The industry continues to navigate a tight labor market with a spike in wages and higher distribution costs. They have been making efforts to bolster their financial conditions, conserve cash and improve profitability by implementing pricing and cost-reduction actions to sustain margins. However, the economic uncertainty stemming from tariffs and retaliatory tariffs poses challenges for industry players.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Agriculture - Products industry is part of the broader Zacks Basic Materials sector. The industry currently carries a Zacks Industry Rank #99, which places it in the top 41% of the 243 Zacks industries.
The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates bright prospects in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Before we present a few stocks worth considering for your portfolio, let us look at the industry’s recent stock market performance and valuation.
Industry Versus Broader Market
The Zacks Agriculture – Products industry has underperformed its sector and the Zacks S&P 500 composite over the past 12 months. Stocks in this industry have moved down 11.9% in the past 12 months against the S&P 500’s 17.9% rise. The Basic Materials sector has gained 27.4% in the same timeframe.
One-Year Price Performance
Industry's Current Valuation
On the basis of the trailing 12-month EV/EBITDA ratio, a commonly used multiple for valuing Agriculture - Products stocks, we see that the industry is currently trading at 10.17X compared with the S&P 500’s 18.51X. The Basic Materials sector’s trailing 12-month EV/EBITDA is 14.62X. This is shown in the charts below.
Enterprise Value/EBITDA (EV/EBITDA) Ratio (TTM)
Enterprise Value/EBITDA (EV/EBITDA) Ratio (TTM)
Over the last five years, the industry traded as high as 10.40X and as low as 3.81X, the median being 5.79X.
2 Agriculture - Products Stocks to Buy
Bunge: The company closed its $34 billion merger with Viterra Ltd. in July 2025, creating a premier global agribusiness platform spanning food, feed and fuel. The combination of their highly complementary asset footprints, Bunge, is now better positioned to connect farmers in the world’s largest production regions to areas with the fastest-growing consumption. Bunge now boasts a diversified agriculture network covering all major crops and is expected to result in relatively more stable cash flows. The combination is also expected to lead to significant incremental network synergies across joint commercial opportunities, vertical integration efficiencies and improved logistics optimization. The company is already seeing tangible benefits of integration, benefiting its third-quarter 2025 results. Bunge, meanwhile, remains committed to its capital allocation priorities, paying dividends, share buybacks while also reinvesting in growth.
The St. Louis, MO-based company has a trailing four-quarter earnings surprise of 11.75%, on average. The Zacks Consensus Estimate for both fiscal 2025 and fiscal 2026 has been revised upward over the past 90 days. While the estimate for fiscal 2025 suggests a year-over-year decline of 18.61%, the same for fiscal 2026 implies growth of 16.4%. BG has a long-term estimated earnings growth of 5.13% and currently carries a Zacks Rank #2 (Buy).
GrowGeneration: The third quarter 2025 (reported last month) marked a clear turning point for the company, delivering double-digit sequential net sales growth of 15.4%, returning to positive adjusted EBITDA of $1.3 million and gross margin more than 27%. The adjusted EBITDA figure is also the company’s strongest profitability in four years. These results reflect the successful execution of GRWG’s strategic plan, as evident from the 27.8% decline in store operating expenses and total operating expenses being cut by more than 30% year over year. Proprietary brands were also a catalyst, accounting for 31.6% of Cultivation and Gardening net sales, up from 23.8% last year. Proprietary brands are expected to deliver around 40% of segment revenues in 2026, boosting margins. The company expects to deliver revenue growth and positive adjusted EBITDA in 2026. Backed by a debt-free balance sheet, lower operating expenses and a growing multi-channel brand strategy, GrowGeneration is positioned to scale as a lean, profitable, brand-led company driving sustainable growth in the years ahead. The company’s acquisition strategy focused on acquiring well-established, profitable hydroponic garden centers and proprietary brands, and private-label brands bodes well.
Greenwood Village, CO-based GrowGeneration is one of the United States’ largest suppliers of specialty products for controlled environment agriculture (CEA), commercial cultivation and retail garden centers. The Zacks Consensus Estimate for the company’s fiscal 2025 bottom line is pegged at a loss of 35 cents per share, suggesting a narrower loss from the 66 cents incurred in fiscal 2024. The estimate for fiscal 2026 is at a loss of 15 cents, suggesting a further improvement. The Zacks Consensus Estimate for both fiscal 2025 and fiscal 2026 has moved up over the past 90 days. GRWG has an average earnings surprise history of 4.64% in the trailing four quarters. GRWG currently carries a Zacks Rank of 2.
Price & Consensus: GRWG
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2 Agriculture - Products Stocks to Buy From the Promising Industry
The Zacks Agriculture - Products industry will benefit from the stable demand for food, supported by an increasing population. Rising consumer awareness regarding food ingredients and the preference for healthier options will drive industry expansion. Alternative and innovative agricultural technologies, such as hydroponics and vertical farming, are expected to serve as significant growth drivers due to their inherent advantages.
Companies like Bunge Global S.A (BG - Free Report) and GrowGeneration (GRWG - Free Report) are poised to gain from strong end-market demand and their ongoing growth initiatives aimed at capitalizing on these trends.
Industry Description
The Zacks Agriculture – Products industry comprises companies that are either involved in storing agricultural commodities, distributing ingredients to others or engaged in farming crops, livestock and poultry products. Some are associated with purchasing, storing, transporting, processing and selling agricultural commodities or products derived from the same. They operate grain elevators, wherein income is generated from commodities bought and sold using these elevators or held as inventory. Some companies provide nutrients, advanced indoor and greenhouse lighting, environmental control systems, and accessories for hydroponic gardening — the method of growing plants using mineral nutrient solutions in a water solvent instead of soil. A few players offer innovative, plant-based health and wellness products. Companies producing lumber also fall under this industry.
Trends Shaping the Future of the Agriculture - Products Industry
Solid Demand to Support Industry: The demand for food is directly influenced by population and demographic changes beside income growth and income distribution. Per the United Nations, the global population will rise to 8.5 billion in 2030 and 9.7 billion in 2050. This would lead to a 50% increase in global food demand. In response to growing consumer demand for healthier food alternatives, several agricultural and food-based companies are investing in innovation, and augmenting their product and market strategies to bring new quality and healthy food ingredients to the market. Ongoing improvements in grain-handling techniques and investment in larger storage spaces will likely support the industry. Plus, stable earnings across all cycles are ensured, considering the industry’s products are always in demand, irrespective of the condition of the economy.
Hydroponics & Cannabis Act as Key Catalysts: Hydroponics is gaining popularity as it gives growers the ability to regulate and manage nutrient delivery, light, air, water, humidity, pests and temperature in an indoor setting. This method enables faster crop growth, with higher yields than traditional soil-based cultivation. It is being utilized in new and emerging industries, including the cultivation of cannabis and hemp. Vertical farms producing organic fruits and vegetables also utilize hydroponics due to the shortage of farmland and environmental vulnerabilities. Vertical farming is the latest agricultural technology, wherein shelves and artificial lighting systems are used to grow produce, thereby minimizing land and water usage. In the United States, the legalization of cannabis for medical and recreational use across multiple states has established it as the world’s largest cannabis market. Globally, momentum toward legalization is also building, opening the door to international expansion. These developments present meaningful long-term growth opportunities for the industry.
Cost-Saving Actions to Aid Margins: Players in the industry are facing rising labor, packaging and distribution costs, among others. Companies engaged in animal products have been facing increasing production costs for a while due to elevated feed ingredient prices. However, feed prices have eased lately. The industry continues to navigate a tight labor market with a spike in wages and higher distribution costs. They have been making efforts to bolster their financial conditions, conserve cash and improve profitability by implementing pricing and cost-reduction actions to sustain margins. However, the economic uncertainty stemming from tariffs and retaliatory tariffs poses challenges for industry players.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Agriculture - Products industry is part of the broader Zacks Basic Materials sector. The industry currently carries a Zacks Industry Rank #99, which places it in the top 41% of the 243 Zacks industries.
The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates bright prospects in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Before we present a few stocks worth considering for your portfolio, let us look at the industry’s recent stock market performance and valuation.
Industry Versus Broader Market
The Zacks Agriculture – Products industry has underperformed its sector and the Zacks S&P 500 composite over the past 12 months. Stocks in this industry have moved down 11.9% in the past 12 months against the S&P 500’s 17.9% rise. The Basic Materials sector has gained 27.4% in the same timeframe.
One-Year Price Performance
Industry's Current Valuation
On the basis of the trailing 12-month EV/EBITDA ratio, a commonly used multiple for valuing Agriculture - Products stocks, we see that the industry is currently trading at 10.17X compared with the S&P 500’s 18.51X. The Basic Materials sector’s trailing 12-month EV/EBITDA is 14.62X. This is shown in the charts below.
Enterprise Value/EBITDA (EV/EBITDA) Ratio (TTM)
Enterprise Value/EBITDA (EV/EBITDA) Ratio (TTM)
Over the last five years, the industry traded as high as 10.40X and as low as 3.81X, the median being 5.79X.
2 Agriculture - Products Stocks to Buy
Bunge: The company closed its $34 billion merger with Viterra Ltd. in July 2025, creating a premier global agribusiness platform spanning food, feed and fuel. The combination of their highly complementary asset footprints, Bunge, is now better positioned to connect farmers in the world’s largest production regions to areas with the fastest-growing consumption. Bunge now boasts a diversified agriculture network covering all major crops and is expected to result in relatively more stable cash flows. The combination is also expected to lead to significant incremental network synergies across joint commercial opportunities, vertical integration efficiencies and improved logistics optimization. The company is already seeing tangible benefits of integration, benefiting its third-quarter 2025 results. Bunge, meanwhile, remains committed to its capital allocation priorities, paying dividends, share buybacks while also reinvesting in growth.
The St. Louis, MO-based company has a trailing four-quarter earnings surprise of 11.75%, on average. The Zacks Consensus Estimate for both fiscal 2025 and fiscal 2026 has been revised upward over the past 90 days. While the estimate for fiscal 2025 suggests a year-over-year decline of 18.61%, the same for fiscal 2026 implies growth of 16.4%. BG has a long-term estimated earnings growth of 5.13% and currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price & Consensus: BG
GrowGeneration: The third quarter 2025 (reported last month) marked a clear turning point for the company, delivering double-digit sequential net sales growth of 15.4%, returning to positive adjusted EBITDA of $1.3 million and gross margin more than 27%. The adjusted EBITDA figure is also the company’s strongest profitability in four years. These results reflect the successful execution of GRWG’s strategic plan, as evident from the 27.8% decline in store operating expenses and total operating expenses being cut by more than 30% year over year. Proprietary brands were also a catalyst, accounting for 31.6% of Cultivation and Gardening net sales, up from 23.8% last year. Proprietary brands are expected to deliver around 40% of segment revenues in 2026, boosting margins. The company expects to deliver revenue growth and positive adjusted EBITDA in 2026. Backed by a debt-free balance sheet, lower operating expenses and a growing multi-channel brand strategy, GrowGeneration is positioned to scale as a lean, profitable, brand-led company driving sustainable growth in the years ahead. The company’s acquisition strategy focused on acquiring well-established, profitable hydroponic garden centers and proprietary brands, and private-label brands bodes well.
Greenwood Village, CO-based GrowGeneration is one of the United States’ largest suppliers of specialty products for controlled environment agriculture (CEA), commercial cultivation and retail garden centers. The Zacks Consensus Estimate for the company’s fiscal 2025 bottom line is pegged at a loss of 35 cents per share, suggesting a narrower loss from the 66 cents incurred in fiscal 2024. The estimate for fiscal 2026 is at a loss of 15 cents, suggesting a further improvement. The Zacks Consensus Estimate for both fiscal 2025 and fiscal 2026 has moved up over the past 90 days. GRWG has an average earnings surprise history of 4.64% in the trailing four quarters. GRWG currently carries a Zacks Rank of 2.
Price & Consensus: GRWG