We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Rising Beef Prices a Boon for Plant-Based Meat Stocks?
Read MoreHide Full Article
The effects of rising food prices are biting into consumers’ income, making the cost of putting food on the table the highest its been in several years. In particular, the biggest food price hikes are in meats like beef, presenting more opportunities for plant-based meat companies. Reports suggest that beef prices are likely to remain elevated through 2025.
This summer’s extensive drought compelled ranchers to sell their herds early, reducing cattle numbers and causing a spike in beef prices. Undoubtedly, rising meat prices result from constrained supplies stemming from labor shortages, escalated costs for inputs like grain and fuel and rising demand for protein-packed food. A high tide of challenges associated with ethical, geopolitical and environmental challenges are also hurdles for meat-providing companies. Beyond this, the pandemic-induced consumer focus on ethical consumption continues to haunt the meat industry.
Thus, the falling output and higher meat prices are spurring demand for plant-based meat proteins. Plant-based meat alternatives began to see a lift with consumers’ growing inclination toward seeking healthier food choices, especially due to COVID-19. Plant-based meats are touted to contain no antibiotics at all, thus making them a healthier option. This meat alternative is also considered a good source of protein for people practicing vegetarian or vegan-eating habits.
Food experts believe that plant-based protein may become a major disruptor in the traditional meat market. The growing demand for plant-based meat alternatives has led many companies to invest in this arena. On that note, we have shortlisted three such stocks that you may want to consider for your portfolio.
Conagra Brands, Inc. (CAG - Free Report) is one of the leading branded food companiesin North America, which offers premium edible products. The Zacks Rank #2 (Buy) company’s prudent innovations have been helping in modernizing its portfolio to meet consumers’ changing needs aptly. In fact, some of CAG’s new products have been top-performing in several categories, such as plant-based protein. Notably, Conagra Brands has been boosting some of the Pinnacle Foods business banners, especially the Gardein brand, which holds a solid position in the plant-based meat-alternatives food space.
Beyond Meat, Inc. (BYND - Free Report) is a well-known plant-based meat company offering a portfolio of revolutionary plant-based meats without GMOs, hormones or antibiotics. The Zacks Rank #3 (Hold) company is benefiting from a solid focus on innovation and expanding its distribution network. BYND’s effective launches and tests across Foodservice business globally are an important step for future growth. Beyond Meat’s intentions to accelerate positive cash flow and implement a sustainable growth model hold promise.
Shares of BYND have declined 40.5% in the past six months. Beyond Meat has an expected EPS growth rate of 10% for three-five years.
Kellogg Company (K - Free Report) , which carries a Zacks Rank #3, boasts a legacy of over 100 years built on a solid product portfolio and brand identity in cereals and snacks. K is dedicated to augmenting its portfolio by adding more products under existing brands, innovation and marketing initiatives. The company has been focused on investing in brand-building efforts. Kellogg’s world-class brands continue to deliver robust performance across markets worldwide. In this regard, brands like Morningstar Farms, Incogmeato, Veggitizers and Gardenburger offer certain meat alternatives.
Shares of K have gained 5.5% in the past six months. Kellogg has an expected EPS growth rate of 3.8% for three-five years.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Rising Beef Prices a Boon for Plant-Based Meat Stocks?
The effects of rising food prices are biting into consumers’ income, making the cost of putting food on the table the highest its been in several years. In particular, the biggest food price hikes are in meats like beef, presenting more opportunities for plant-based meat companies. Reports suggest that beef prices are likely to remain elevated through 2025.
This summer’s extensive drought compelled ranchers to sell their herds early, reducing cattle numbers and causing a spike in beef prices. Undoubtedly, rising meat prices result from constrained supplies stemming from labor shortages, escalated costs for inputs like grain and fuel and rising demand for protein-packed food. A high tide of challenges associated with ethical, geopolitical and environmental challenges are also hurdles for meat-providing companies. Beyond this, the pandemic-induced consumer focus on ethical consumption continues to haunt the meat industry.
Thus, the falling output and higher meat prices are spurring demand for plant-based meat proteins. Plant-based meat alternatives began to see a lift with consumers’ growing inclination toward seeking healthier food choices, especially due to COVID-19. Plant-based meats are touted to contain no antibiotics at all, thus making them a healthier option. This meat alternative is also considered a good source of protein for people practicing vegetarian or vegan-eating habits.
Food experts believe that plant-based protein may become a major disruptor in the traditional meat market. The growing demand for plant-based meat alternatives has led many companies to invest in this arena. On that note, we have shortlisted three such stocks that you may want to consider for your portfolio.
Conagra Brands, Inc. (CAG - Free Report) is one of the leading branded food companiesin North America, which offers premium edible products. The Zacks Rank #2 (Buy) company’s prudent innovations have been helping in modernizing its portfolio to meet consumers’ changing needs aptly. In fact, some of CAG’s new products have been top-performing in several categories, such as plant-based protein. Notably, Conagra Brands has been boosting some of the Pinnacle Foods business banners, especially the Gardein brand, which holds a solid position in the plant-based meat-alternatives food space.
Shares of CAG have increased 21.1% in the past six months. Conagra Brands has an expected EPS growth rate of 7% for three-five years. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Beyond Meat, Inc. (BYND - Free Report) is a well-known plant-based meat company offering a portfolio of revolutionary plant-based meats without GMOs, hormones or antibiotics. The Zacks Rank #3 (Hold) company is benefiting from a solid focus on innovation and expanding its distribution network. BYND’s effective launches and tests across Foodservice business globally are an important step for future growth. Beyond Meat’s intentions to accelerate positive cash flow and implement a sustainable growth model hold promise.
Shares of BYND have declined 40.5% in the past six months. Beyond Meat has an expected EPS growth rate of 10% for three-five years.
Kellogg Company (K - Free Report) , which carries a Zacks Rank #3, boasts a legacy of over 100 years built on a solid product portfolio and brand identity in cereals and snacks. K is dedicated to augmenting its portfolio by adding more products under existing brands, innovation and marketing initiatives. The company has been focused on investing in brand-building efforts. Kellogg’s world-class brands continue to deliver robust performance across markets worldwide. In this regard, brands like Morningstar Farms, Incogmeato, Veggitizers and Gardenburger offer certain meat alternatives.
Shares of K have gained 5.5% in the past six months. Kellogg has an expected EPS growth rate of 3.8% for three-five years.