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Feast on These 4 Food Stocks as 2023 Approaches Its Finale
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As 2023 comes to a close, it is worth noting some delicacies from the food space, which have exhibited resilience in the face of economic challenges and look well-placed for the new year.
The year was marked by inflation, which not only spiked up input costs for manufacturers but also weighed on consumers’ purchasing power, thereby affecting companies’ sales volumes. That being said, the inflationary trend has been showing signs of moderation now.
Encouragingly, we have pinpointed some food stocks that offer appealing prospects for investors seeking potential for growth in 2024. An effective combination of a strong brand presence and strategic pricing approach has empowered these companies to navigate the volatile economic landscape.
What’s Making Food Stocks Flavorful?
Companies have been benefiting from robust pricing strategies implemented to weather the economic storm. Brand strength has been another major upside. Consumers’ loyalty to specific brands, combined with companies' unwavering focus on innovation, has been a driving force.
For instance, companies have been responding well to the growing consumer preference for healthy and nourishing food by introducing innovations in the organic product sector. The focus on expanding plant-based alternatives has particularly benefited companies offering meat products, which remain a significant component of consumers' shopping carts.
Apart from this, endeavors to enhance manufacturing capabilities and strengthen product portfolios have proven successful for numerous food companies, positioning them favorably for future growth. Their ability to adapt to evolving consumer preferences and market dynamics has emerged as a winning formula.
Considering these factors, we are introducing four compelling options from the food domain, each sporting a favorable Zacks Rank #1 (Strong Buy) or 2 (Buy). These stocks have observed rises in their share prices over the past three months, bucking the performance of their respective industries.
Savor These 4 Delights
Investors can indulge in Pilgrim's Pride Corporation (PPC - Free Report) , which currently sports a Zacks Rank #1. Specializing in the production, processing, marketing and distribution of fresh, frozen and value-added chicken and pork products, PPC has been consistently bolstering the marketing efforts of its brands while expanding into new regions. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company also regularly implements supply-chain enhancements to improve efficiency and cut costs. Pilgrim’s Pride’s focus on key customers is a pathway for refining its portfolio and creating competitive advantages.
The consensus mark for 2024 earnings per share (EPS) suggests growth of 62.4% from the year-ago period. The Zacks Consensus Estimate for Pilgrim's Pride’s 2024 EPS has increased from $2.12 to $2.48 in the past 60 days. Shares of PPC have risen 13% in the past three months, comfortably outpacing the industry’s decline of 8%.
Image Source: Zacks Investment Research
Another promising option is The Kraft Heinz Company (KHC - Free Report) , currently holding a Zacks Rank #2. This consumer-packaged food and beverage company has experienced positive momentum, particularly in its three crucial pillars — Foodservice, Emerging Markets and U.S. Retail Grow platforms.
Additionally, The Kraft Heinz Company has been actively pursuing its transformation plan, with the AGILE@SCALE strategy standing out. This strategic approach involves making partnerships with technology giants and innovative leaders, contributing significantly to enhancing the company's agile expertise and capabilities.
KHC has been undertaking strategic pricing initiatives to improve its performance. The consensus mark for The Kraft Heinz Company’s EPS for 2024 suggests growth of 1.7% from the year-ago period figures. The Zacks Consensus Estimate for KHC’s 2024 EPS has risen by 1.7% to $3.01 over the past 60 days. Shares of the company have rallied 7% in the past three months compared with the industry’s rise of 1.4%.
Image Source: Zacks Investment Research
Ingredion Incorporated (INGR - Free Report) is also worth relishing. This Zacks Rank #2 company looks well-positioned due to its market and product diversity and robust business model. An efficient approach to product pricing, a favorable customer mix and a focus on driving operational excellence and productivity have been aiding the company in battling cost inflation. Ingredion Incorporated’s focus on Driving Growth Roadmap also bodes well.
The company, which produces and sells sweeteners, starches, nutrition ingredients and biomaterial solutions, has rallied 8.1% in the past three months. The Zacks Consensus Estimate for INGR’s 2024 EPS has increased by a penny in the past 60 days to $9.74. This suggests growth of 4.9% from the figure reported in the year-ago period.
Vital Farms, Inc. (VITL - Free Report) looks tempting, with its shares up 26.9% in the past three months. This provider of pasture-raised products currently carries a Zacks Rank #2. The Zacks Consensus Estimate for Vital Farms’ 2024 EPS has increased 12.3% in the past 60 days to 64 cents, indicating growth of 21.4.% from the figure reported in the year-ago period.
Vital Farms looks well-placed due to its focus on fueling demand through new retail collaborations and the expansion of the product range with existing partners. The company’s impressive marketing strategies are likely to help it witness a rise in household penetration. VITL recently highlighted its long-term goals. Vital Farms expects net revenues of $1 billion by 2027, with the gross margin expected to be 35%.
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Feast on These 4 Food Stocks as 2023 Approaches Its Finale
As 2023 comes to a close, it is worth noting some delicacies from the food space, which have exhibited resilience in the face of economic challenges and look well-placed for the new year.
The year was marked by inflation, which not only spiked up input costs for manufacturers but also weighed on consumers’ purchasing power, thereby affecting companies’ sales volumes. That being said, the inflationary trend has been showing signs of moderation now.
Encouragingly, we have pinpointed some food stocks that offer appealing prospects for investors seeking potential for growth in 2024. An effective combination of a strong brand presence and strategic pricing approach has empowered these companies to navigate the volatile economic landscape.
What’s Making Food Stocks Flavorful?
Companies have been benefiting from robust pricing strategies implemented to weather the economic storm. Brand strength has been another major upside. Consumers’ loyalty to specific brands, combined with companies' unwavering focus on innovation, has been a driving force.
For instance, companies have been responding well to the growing consumer preference for healthy and nourishing food by introducing innovations in the organic product sector. The focus on expanding plant-based alternatives has particularly benefited companies offering meat products, which remain a significant component of consumers' shopping carts.
Apart from this, endeavors to enhance manufacturing capabilities and strengthen product portfolios have proven successful for numerous food companies, positioning them favorably for future growth. Their ability to adapt to evolving consumer preferences and market dynamics has emerged as a winning formula.
Considering these factors, we are introducing four compelling options from the food domain, each sporting a favorable Zacks Rank #1 (Strong Buy) or 2 (Buy). These stocks have observed rises in their share prices over the past three months, bucking the performance of their respective industries.
Savor These 4 Delights
Investors can indulge in Pilgrim's Pride Corporation (PPC - Free Report) , which currently sports a Zacks Rank #1. Specializing in the production, processing, marketing and distribution of fresh, frozen and value-added chicken and pork products, PPC has been consistently bolstering the marketing efforts of its brands while expanding into new regions. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company also regularly implements supply-chain enhancements to improve efficiency and cut costs. Pilgrim’s Pride’s focus on key customers is a pathway for refining its portfolio and creating competitive advantages.
The consensus mark for 2024 earnings per share (EPS) suggests growth of 62.4% from the year-ago period. The Zacks Consensus Estimate for Pilgrim's Pride’s 2024 EPS has increased from $2.12 to $2.48 in the past 60 days. Shares of PPC have risen 13% in the past three months, comfortably outpacing the industry’s decline of 8%.
Image Source: Zacks Investment Research
Another promising option is The Kraft Heinz Company (KHC - Free Report) , currently holding a Zacks Rank #2. This consumer-packaged food and beverage company has experienced positive momentum, particularly in its three crucial pillars — Foodservice, Emerging Markets and U.S. Retail Grow platforms.
Additionally, The Kraft Heinz Company has been actively pursuing its transformation plan, with the AGILE@SCALE strategy standing out. This strategic approach involves making partnerships with technology giants and innovative leaders, contributing significantly to enhancing the company's agile expertise and capabilities.
KHC has been undertaking strategic pricing initiatives to improve its performance. The consensus mark for The Kraft Heinz Company’s EPS for 2024 suggests growth of 1.7% from the year-ago period figures. The Zacks Consensus Estimate for KHC’s 2024 EPS has risen by 1.7% to $3.01 over the past 60 days. Shares of the company have rallied 7% in the past three months compared with the industry’s rise of 1.4%.
Image Source: Zacks Investment Research
Ingredion Incorporated (INGR - Free Report) is also worth relishing. This Zacks Rank #2 company looks well-positioned due to its market and product diversity and robust business model. An efficient approach to product pricing, a favorable customer mix and a focus on driving operational excellence and productivity have been aiding the company in battling cost inflation. Ingredion Incorporated’s focus on Driving Growth Roadmap also bodes well.
The company, which produces and sells sweeteners, starches, nutrition ingredients and biomaterial solutions, has rallied 8.1% in the past three months. The Zacks Consensus Estimate for INGR’s 2024 EPS has increased by a penny in the past 60 days to $9.74. This suggests growth of 4.9% from the figure reported in the year-ago period.
Vital Farms, Inc. (VITL - Free Report) looks tempting, with its shares up 26.9% in the past three months. This provider of pasture-raised products currently carries a Zacks Rank #2. The Zacks Consensus Estimate for Vital Farms’ 2024 EPS has increased 12.3% in the past 60 days to 64 cents, indicating growth of 21.4.% from the figure reported in the year-ago period.
Vital Farms looks well-placed due to its focus on fueling demand through new retail collaborations and the expansion of the product range with existing partners. The company’s impressive marketing strategies are likely to help it witness a rise in household penetration. VITL recently highlighted its long-term goals. Vital Farms expects net revenues of $1 billion by 2027, with the gross margin expected to be 35%.