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5 Agriculture Operations Stock Picks to Tap Long-Term Growth Trends
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The Zacks Agriculture – Operations industry is positioned to benefit from several long-term structural growth drivers. Ongoing innovation in seeds, crop inputs, food processing and supply-chain technologies is creating avenues for growth, while increasing consumer preference for healthier and sustainably produced food continues to influence demand trends. Investments in automation, grain handling, storage and logistics are also helping operators improve efficiency, reduce costs and strengthen productivity.
At the same time, rising demand from emerging markets and the expanding adoption of alternative proteins are broadening growth opportunities across the value chain. Companies are further enhancing their competitive positions through acquisitions, strategic partnerships and capacity expansions.
Industry leaders such as Corteva Inc. (CTVA - Free Report) , Archer Daniels Midland Company (ADM - Free Report) , The Scotts Miracle-Gro Company (SMG - Free Report) , Mission Produce Inc. (AVO - Free Report) and Dole Plc (DOLE - Free Report) are well-positioned to benefit from the evolving global food and agriculture trends.
However, industry participants continue to contend with persistent structural headwinds, including volatile commodity prices, elevated input and labor costs, trade-related uncertainties and rising operating expenses. These pressures are weighing on margins, complicating production planning and increasing the need for disciplined cost management. Companies must continue investing in technology, capacity and supply-chain resilience to support long-term competitiveness. Balancing near-term profitability with strategic investment therefore remains a key challenge for operators across the industry.
About the Industry
The Zacks Agriculture – Operations industry comprises companies that produce or procure, transport, store, process and distribute agricultural commodities to consumers. It also distributes ingredients to other parts of the agriculture industry (including clothing, animal feed, energy and industrial products). Some industry players engage in dairy operations, land transformation activities and the development of food ingredients using gene-editing technology. The industry encompasses production activities related to the traditional farming of crops (like corn, soybean, wheat and cotton), and livestock and poultry products (including meat, dairy and eggs). The products are mainly sold at grocery stores or exported overseas. These are also used as feedstock for other industries. For example, cotton is used in the clothing industry and corn is used in the ethanol industry.
Factors Shaping the Future of Agriculture - Operations Industry
Organic Products & Innovation in Focus: The industry has gained from rising consumer demand for healthier food, accelerating a shift toward organic farming and lower chemical and pesticide use. Innovations in food processing, enhanced grain-handling techniques, increased storage capacity and strong demand from emerging markets are driving growth. As healthy eating trends expand, alternative protein consumption is expected to rise. To align with trends in food security, health and well-being, industry players are prioritizing productivity and innovation. Technology adoption is poised to play an increasingly important role in improving farm productivity and offsetting labor and input constraints. Companies are also investing in acquisitions and joint ventures to create high-quality ingredients and solutions that meet the growing demand for healthy products.
Agricultural Export/Import Projections: The August 2026 outlook of the U.S. Department of Agriculture (“USDA”) projects agricultural exports of $179.5 billion for fiscal 2026 (ending Sept. 30, 2026), up $3 billion from the May forecast of $176.5 billion. At the same time, expected agricultural imports have been lowered to $204.5 billion, narrowing the projected trade deficit to $25 billion from $42.9 billion in fiscal 2025. Corn is expected to be a major contributor, with exports forecast at $19.1 billion, while dairy products and tree nuts are projected at $10.4 billion and $12.2 billion, respectively. The stronger export outlook should provide some demand support to U.S. producers grappling with softer commodity prices and elevated production costs, although agricultural imports are still expected to exceed exports materially. The trade picture is projected to improve further in fiscal 2027, with USDA forecasting agricultural exports to rise to $186.5 billion and the trade deficit to narrow modestly to $24.5 billion.
Elevated Costs: Agricultural companies face rising costs due to fluctuating commodity prices, inflation-driven input increases and trade uncertainties, all of which are squeezing profitability. Inflation-driven surges in input costs are significant challenges, raising production expenses and narrowing margins. To combat these pressures, companies have adopted pricing strategies and improved supply-chain resilience through partnerships and distribution initiatives. However, commodity cost inflation is expected to persist, maintaining pressure on margins in the near term.
Additionally, companies are managing higher SG&A expenses, driven by performance-related compensation, project costs and technology investments to stay competitive. These elevated operating expenses and ongoing SG&A deleverage may continue to weigh on profitability.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Agriculture – Operations industry is within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #107, which places it in the top 43% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries resulted from a positive aggregate earnings outlook for the constituent companies. Looking at the aggregate earnings estimate revisions, analysts are gradually gaining confidence in this group’s earnings growth potential.
Before we present a few stocks that you may want to consider for your portfolio, let us look at the industry’s recent stock-market performance and valuation picture.
Industry vs. Broader Market
In a year, the Zacks Agriculture – Operations industry has outperformed the Zacks Consumer Staples sector but has underperformed the S&P 500.
The stocks in the industry have collectively rallied 11.9% in a year compared with a 4.6% return for the sector and 15.3% growth for the Zacks S&P 500 composite.
1-Year Price Performance
Agriculture - Operations Industry's Valuation
On the basis of the forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing Consumer Staples stocks, the Agriculture – Operations industry is currently trading at 15.13X compared with the S&P 500’s 19.65X and the sector’s 16.95X.
Over the last five years, the industry traded as high as 17.34X, as low as 11.33X and at the median of 14.32X, as the chart below shows.
Price-to-Earnings Ratio (Past 5 Years)
5 Agriculture Operations Stocks to Watch
One stock in the Zacks Agriculture – Operations universe currently sports a Zacks Rank #1 (Strong Buy), while two stocks have a Zacks Rank #2 (Buy). We have highlighted two other stocks currently carrying a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Archer Daniels: This Chicago, IL-based agricultural product company’s leadership in critical global trends, such as flexitarian diets, nutrition and sustainable materials, has contributed to its momentum. Its focus on investing in assets and technological capabilities to serve customers efficiently is likely to be a significant growth driver. Solid demand, improved productivity and product innovations have been aiding the company. Its Readiness program, positive cash flow and solid performance at the Nutrition unit have been supporting the results. The Zacks Rank #1 company has been progressing well on its three strategic pillars — optimize, drive and growth.
Archer Daniels is poised to benefit from strong performance in its Nutrition segment, driven by significant gains in the Human and Animal Nutrition units. The Zacks Consensus Estimate for ADM’s 2026 earnings has been unchanged in the past 30 days. The Zacks Consensus Estimate for Archer Daniels’ 2026 sales and earnings suggests growth of 6.6% and 52.2%, respectively, from the year-ago period’s reported figures. It delivered an earnings surprise of 11.3%, on average, in the trailing four quarters. The company has rallied 39.8% in the past year.
Price & Consensus: ADM
Mission Produce: This Oxnard, CA-based company is engaged in sourcing, farming, packaging, marketing and distributing avocados, mangoes and blueberries to food retailers, distributors and foodservice customers in the United States and internationally. By effectively integrating its sales operations with sourcing teams, the company has demonstrated an exceptional ability to meet customer demand while optimizing per-unit margins. This alignment allows Mission Produce to leverage a sustained higher pricing environment, ensuring profitability and consistent performance in its Marketing and Distribution segment.
The Zacks Consensus Estimate for Mission Produce’s fiscal 2026 earnings has moved up 5.2% in the past seven days. The Zacks Consensus Estimate for its fiscal 2026 sales suggests growth of 2.8% from the year-ago period’s reported figure, while the same for earnings indicates a decline of 22.8%. The Zacks Rank #2 company has delivered an earnings surprise of 17.6%, on average, in the trailing four quarters. The AVO stock has lost 2.1% in the past year.
Price & Consensus: AVO
Dole: This Dublin, Ireland-based global leader in fresh produce is poised to benefit from improved logistical efficiencies in several areas, which brought increased stability to its core fruit business. The company’s diverse sourcing network and advanced farming practices are likely to help overcome the weather challenges in various regions. DOLE benefited from a healthier supply and demand balance, which allowed for a better pricing environment in Europe and much-improved selling conditions in the non-core markets.
The Zacks Consensus Estimate for Dole’s 2026 earnings has been unchanged in the past 30 days. The Zacks Consensus Estimate for its 2026 sales and earnings suggests growth of 5.6% and 11.7%, respectively, from the year-ago period’s reported figure. The Zacks Rank #2 company delivered a negative earnings surprise of 1.4%, on average, in the trailing four quarters. The DOLE stock has declined 3.7% in the past year.
Price & Consensus: DOLE
Corteva: This Wilmington, DE-based pure-play agriculture company is poised to drive above-market growth through its industry-leading product pipeline and rigorous approach to innovation and operating discipline. It is poised to accelerate its pace of innovation and existing leadership position in the high-value sector to meet the increasing market demand for naturally derived products through three collaboration agreements. Strong price execution in seed, supply-chain flexibility and solid market demand for its balanced and differentiated new product portfolios drive CTVA’s performance.
The Zacks Consensus Estimate for Corteva’s 2026 earnings has been unchanged in the past 30 days. The Zacks Consensus Estimate for its 2026 sales and earnings suggests growth of 4.1% and 11.4%, respectively, from the year-ago period’s reported figures. The Zacks Rank #3 company has delivered an earnings surprise of 21.9%, on average, in the trailing four quarters. The CTVA stock has risen 2.7% in the past year.
Price & Consensus: CTVA
Scotts Miracle-Gro: This Marysville, OH-based company sells a broad range of lawn and garden care products, as well as solutions for indoor and hydroponic gardening, serving customers across the United States and international markets. The company is emerging from a multi-year reset as a higher-quality, cash-generative consumer staples business. Management is refocusing on core lawn and garden brands, driving consistent volume growth, expanding margins and strengthening the balance sheet. A strategic mix shift toward higher-margin branded products, accelerating e-commerce penetration and disciplined cost savings underpin earnings growth.
With a resilient category, powerful brands and shareholder-friendly capital returns, SMG offers an improving risk-reward profile. The Zacks Consensus Estimate for SMG’s fiscal 2026 earnings moved up 0.5% in the past 30 days. The Zacks Consensus Estimate for Scotts Miracle-Gro’s fiscal 2026 sales suggests a decline of 3.6%, while the earnings estimate indicates 17.9% growth from the year-ago period’s reported figure. SMG delivered an earnings surprise of 11.8%, on average, in the trailing four quarters. The Zacks Rank #3 company has declined 8.3% in the past year.
View the Zacks #1 Rank List
Image: Bigstock
5 Agriculture Operations Stock Picks to Tap Long-Term Growth Trends
The Zacks Agriculture – Operations industry is positioned to benefit from several long-term structural growth drivers. Ongoing innovation in seeds, crop inputs, food processing and supply-chain technologies is creating avenues for growth, while increasing consumer preference for healthier and sustainably produced food continues to influence demand trends. Investments in automation, grain handling, storage and logistics are also helping operators improve efficiency, reduce costs and strengthen productivity.
At the same time, rising demand from emerging markets and the expanding adoption of alternative proteins are broadening growth opportunities across the value chain. Companies are further enhancing their competitive positions through acquisitions, strategic partnerships and capacity expansions.
Industry leaders such as Corteva Inc. (CTVA - Free Report) , Archer Daniels Midland Company (ADM - Free Report) , The Scotts Miracle-Gro Company (SMG - Free Report) , Mission Produce Inc. (AVO - Free Report) and Dole Plc (DOLE - Free Report) are well-positioned to benefit from the evolving global food and agriculture trends.
However, industry participants continue to contend with persistent structural headwinds, including volatile commodity prices, elevated input and labor costs, trade-related uncertainties and rising operating expenses. These pressures are weighing on margins, complicating production planning and increasing the need for disciplined cost management. Companies must continue investing in technology, capacity and supply-chain resilience to support long-term competitiveness. Balancing near-term profitability with strategic investment therefore remains a key challenge for operators across the industry.
About the Industry
The Zacks Agriculture – Operations industry comprises companies that produce or procure, transport, store, process and distribute agricultural commodities to consumers. It also distributes ingredients to other parts of the agriculture industry (including clothing, animal feed, energy and industrial products). Some industry players engage in dairy operations, land transformation activities and the development of food ingredients using gene-editing technology. The industry encompasses production activities related to the traditional farming of crops (like corn, soybean, wheat and cotton), and livestock and poultry products (including meat, dairy and eggs). The products are mainly sold at grocery stores or exported overseas. These are also used as feedstock for other industries. For example, cotton is used in the clothing industry and corn is used in the ethanol industry.
Factors Shaping the Future of Agriculture - Operations Industry
Organic Products & Innovation in Focus: The industry has gained from rising consumer demand for healthier food, accelerating a shift toward organic farming and lower chemical and pesticide use. Innovations in food processing, enhanced grain-handling techniques, increased storage capacity and strong demand from emerging markets are driving growth. As healthy eating trends expand, alternative protein consumption is expected to rise. To align with trends in food security, health and well-being, industry players are prioritizing productivity and innovation. Technology adoption is poised to play an increasingly important role in improving farm productivity and offsetting labor and input constraints. Companies are also investing in acquisitions and joint ventures to create high-quality ingredients and solutions that meet the growing demand for healthy products.
Agricultural Export/Import Projections: The August 2026 outlook of the U.S. Department of Agriculture (“USDA”) projects agricultural exports of $179.5 billion for fiscal 2026 (ending Sept. 30, 2026), up $3 billion from the May forecast of $176.5 billion. At the same time, expected agricultural imports have been lowered to $204.5 billion, narrowing the projected trade deficit to $25 billion from $42.9 billion in fiscal 2025. Corn is expected to be a major contributor, with exports forecast at $19.1 billion, while dairy products and tree nuts are projected at $10.4 billion and $12.2 billion, respectively. The stronger export outlook should provide some demand support to U.S. producers grappling with softer commodity prices and elevated production costs, although agricultural imports are still expected to exceed exports materially. The trade picture is projected to improve further in fiscal 2027, with USDA forecasting agricultural exports to rise to $186.5 billion and the trade deficit to narrow modestly to $24.5 billion.
Elevated Costs: Agricultural companies face rising costs due to fluctuating commodity prices, inflation-driven input increases and trade uncertainties, all of which are squeezing profitability. Inflation-driven surges in input costs are significant challenges, raising production expenses and narrowing margins. To combat these pressures, companies have adopted pricing strategies and improved supply-chain resilience through partnerships and distribution initiatives. However, commodity cost inflation is expected to persist, maintaining pressure on margins in the near term.
Additionally, companies are managing higher SG&A expenses, driven by performance-related compensation, project costs and technology investments to stay competitive. These elevated operating expenses and ongoing SG&A deleverage may continue to weigh on profitability.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Agriculture – Operations industry is within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #107, which places it in the top 43% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries resulted from a positive aggregate earnings outlook for the constituent companies. Looking at the aggregate earnings estimate revisions, analysts are gradually gaining confidence in this group’s earnings growth potential.
Before we present a few stocks that you may want to consider for your portfolio, let us look at the industry’s recent stock-market performance and valuation picture.
Industry vs. Broader Market
In a year, the Zacks Agriculture – Operations industry has outperformed the Zacks Consumer Staples sector but has underperformed the S&P 500.
The stocks in the industry have collectively rallied 11.9% in a year compared with a 4.6% return for the sector and 15.3% growth for the Zacks S&P 500 composite.
1-Year Price Performance
Agriculture - Operations Industry's Valuation
On the basis of the forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing Consumer Staples stocks, the Agriculture – Operations industry is currently trading at 15.13X compared with the S&P 500’s 19.65X and the sector’s 16.95X.
Over the last five years, the industry traded as high as 17.34X, as low as 11.33X and at the median of 14.32X, as the chart below shows.
Price-to-Earnings Ratio (Past 5 Years)
5 Agriculture Operations Stocks to Watch
One stock in the Zacks Agriculture – Operations universe currently sports a Zacks Rank #1 (Strong Buy), while two stocks have a Zacks Rank #2 (Buy). We have highlighted two other stocks currently carrying a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Archer Daniels: This Chicago, IL-based agricultural product company’s leadership in critical global trends, such as flexitarian diets, nutrition and sustainable materials, has contributed to its momentum. Its focus on investing in assets and technological capabilities to serve customers efficiently is likely to be a significant growth driver. Solid demand, improved productivity and product innovations have been aiding the company. Its Readiness program, positive cash flow and solid performance at the Nutrition unit have been supporting the results. The Zacks Rank #1 company has been progressing well on its three strategic pillars — optimize, drive and growth.
Archer Daniels is poised to benefit from strong performance in its Nutrition segment, driven by significant gains in the Human and Animal Nutrition units. The Zacks Consensus Estimate for ADM’s 2026 earnings has been unchanged in the past 30 days. The Zacks Consensus Estimate for Archer Daniels’ 2026 sales and earnings suggests growth of 6.6% and 52.2%, respectively, from the year-ago period’s reported figures. It delivered an earnings surprise of 11.3%, on average, in the trailing four quarters. The company has rallied 39.8% in the past year.
Price & Consensus: ADM
Mission Produce: This Oxnard, CA-based company is engaged in sourcing, farming, packaging, marketing and distributing avocados, mangoes and blueberries to food retailers, distributors and foodservice customers in the United States and internationally. By effectively integrating its sales operations with sourcing teams, the company has demonstrated an exceptional ability to meet customer demand while optimizing per-unit margins. This alignment allows Mission Produce to leverage a sustained higher pricing environment, ensuring profitability and consistent performance in its Marketing and Distribution segment.
The Zacks Consensus Estimate for Mission Produce’s fiscal 2026 earnings has moved up 5.2% in the past seven days. The Zacks Consensus Estimate for its fiscal 2026 sales suggests growth of 2.8% from the year-ago period’s reported figure, while the same for earnings indicates a decline of 22.8%. The Zacks Rank #2 company has delivered an earnings surprise of 17.6%, on average, in the trailing four quarters. The AVO stock has lost 2.1% in the past year.
Price & Consensus: AVO
Dole: This Dublin, Ireland-based global leader in fresh produce is poised to benefit from improved logistical efficiencies in several areas, which brought increased stability to its core fruit business. The company’s diverse sourcing network and advanced farming practices are likely to help overcome the weather challenges in various regions. DOLE benefited from a healthier supply and demand balance, which allowed for a better pricing environment in Europe and much-improved selling conditions in the non-core markets.
The Zacks Consensus Estimate for Dole’s 2026 earnings has been unchanged in the past 30 days. The Zacks Consensus Estimate for its 2026 sales and earnings suggests growth of 5.6% and 11.7%, respectively, from the year-ago period’s reported figure. The Zacks Rank #2 company delivered a negative earnings surprise of 1.4%, on average, in the trailing four quarters. The DOLE stock has declined 3.7% in the past year.
Price & Consensus: DOLE
Corteva: This Wilmington, DE-based pure-play agriculture company is poised to drive above-market growth through its industry-leading product pipeline and rigorous approach to innovation and operating discipline. It is poised to accelerate its pace of innovation and existing leadership position in the high-value sector to meet the increasing market demand for naturally derived products through three collaboration agreements. Strong price execution in seed, supply-chain flexibility and solid market demand for its balanced and differentiated new product portfolios drive CTVA’s performance.
The Zacks Consensus Estimate for Corteva’s 2026 earnings has been unchanged in the past 30 days. The Zacks Consensus Estimate for its 2026 sales and earnings suggests growth of 4.1% and 11.4%, respectively, from the year-ago period’s reported figures. The Zacks Rank #3 company has delivered an earnings surprise of 21.9%, on average, in the trailing four quarters. The CTVA stock has risen 2.7% in the past year.
Price & Consensus: CTVA
Scotts Miracle-Gro: This Marysville, OH-based company sells a broad range of lawn and garden care products, as well as solutions for indoor and hydroponic gardening, serving customers across the United States and international markets. The company is emerging from a multi-year reset as a higher-quality, cash-generative consumer staples business. Management is refocusing on core lawn and garden brands, driving consistent volume growth, expanding margins and strengthening the balance sheet. A strategic mix shift toward higher-margin branded products, accelerating e-commerce penetration and disciplined cost savings underpin earnings growth.
With a resilient category, powerful brands and shareholder-friendly capital returns, SMG offers an improving risk-reward profile. The Zacks Consensus Estimate for SMG’s fiscal 2026 earnings moved up 0.5% in the past 30 days. The Zacks Consensus Estimate for Scotts Miracle-Gro’s fiscal 2026 sales suggests a decline of 3.6%, while the earnings estimate indicates 17.9% growth from the year-ago period’s reported figure. SMG delivered an earnings surprise of 11.8%, on average, in the trailing four quarters. The Zacks Rank #3 company has declined 8.3% in the past year.
Price & Consensus: SMG