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Mission Produce Stock Jumps 15% in a Month: Buy, Hold or Sell?
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Key Takeaways
Mission Produce shares climbed 15% in a month, beating the broader market, its industry and key competitors.
Mission Produce posted 7% volume growth in FY25, accelerating to 13% in Q4 on Mexico and Peru supply.
AVO expanded the Q4 gross margin by 180 bps, lifted EBITDA 12% and generated nearly $90M cash flow.
Mission Produce Inc. (AVO - Free Report) stock has witnessed momentum in the past month, with shares rising as much as 14.7%. With this growth, the AVO stock has outperformed the Zacks Agriculture – Operations industry’s and the Consumer Staples sector’s growth of 1.2% and 1.1%, respectively. The AVO stock has also outpaced the S&P 500’s growth of 1.5% in the same period.
AVO’s performance is also notably stronger than that of its close competitors, Corteva Inc. (CTVA - Free Report) and Dole Plc (DOLE - Free Report) , which posted growth of 1% and 8.9%, respectively, in the past month. Moreover, the AVO stock has outpaced Adecoagro (AGRO - Free Report) , which has declined 6.4% in the same period.
Mission Produce’s Price Performance
Image Source: Zacks Investment Research
Currently at $13.20, the AVO stock trades 38.1% above its 52-week low of $9.56. The Mission Produce stock’s price also stands 13.3% below its 52-week high of $15.25, reflecting upside potential.
The stock trades above its 50 and 200-day simple moving averages (SMAs), indicating a bullish sentiment. SMA is an essential tool in technical analysis that helps investors evaluate price trends by smoothing out short-term fluctuations. This approach provides a clearer perspective on a stock's long-term direction.
AVO Stock Trades Above 50 & 200-Day SMAs
Image Source: Zacks Investment Research
What’s Driving the AVO Stock’s Momentum
Mission Produce’s recent stock momentum reflects growing investor confidence in the company’s execution, cash generation and long-term growth runway, as highlighted in its fourth-quarter fiscal 2025 results. Despite a year-over-year decline in revenues, driven by lower avocado pricing, the underlying fundamentals of the business strengthened meaningfully. The company demonstrated that its earnings power is increasingly driven by volume, cost efficiency and vertical integration rather than commodity pricing alone.
A key driver has been robust volume growth. Mission Produce delivered a 7% increase in avocado volumes for fiscal 2025, accelerating to 13% growth in the fiscal fourth quarter, supported by higher Mexican supply and a sharp recovery in Peruvian production. Greater fruit availability allowed the company to expand retailer programs globally, particularly in Europe and Asia, where volume growth materially outpaced North America. This geographic diversification strengthens revenue durability across pricing cycles.
Margin resilience has also supported the stock. The gross margin expanded 180 basis points in the fiscal fourth quarter as higher volumes and improved yields in International Farming more than offset lower per-unit pricing. Notably, adjusted EBITDA rose 12% year over year, underscoring the benefits of Mission Produce’s vertically integrated, volume-centric model.
Free cash flow visibility has also improved. With the bulk of its multi-year capital investment cycle completed, Mission Produce generated nearly $90 million in operating cash flow in fiscal 2025 and reduced long-term debt by approximately $18 million. Management expects capital expenditure to decline in fiscal 2026, enhancing cash conversion and balance-sheet flexibility.
AVO’s momentum reflects a business that is scaling volumes, lowering unit costs and transitioning into a stronger cash-generative phase.
Mission Produce’s Estimate Revision Trend
The Zacks Consensus Estimate for AVO’s fiscal 2025 EPS was unchanged in the last 30 days. For fiscal 2025, the Zacks Consensus Estimate for AVO’s sales and EPS implies year-over-year declines of 10.2% and 9.5%, respectively.
Image Source: Zacks Investment Research
AVO’s Premium Valuation
Mission Produce is currently trading at a forward 12-month P/E multiple of 33X, exceeding the industry average of 12.3X.
Image Source: Zacks Investment Research
At 33X P/E, Mission Produce trades at a significant premium to its industry peers. The company’s peers, such as Adecoagro, Corteva and Dole, are delivering growth and trade at more reasonable multiples. Adecoagro, Corteva and Dole have forward 12-month P/E ratios of 9.59X, 18.26X and 10.76X — all significantly lower than that of AVO.
Although the current valuation may seem expensive, it suggests that investors have high expectations for AVO's future performance and growth potential. The company’s capability to execute its strategy and capitalize on a favorable pricing environment is essential for ensuring profitability and consistent performance in its Marketing and Distribution segment. While success in these areas can strengthen its market leadership, its failure can pose serious challenges for AVO.
Should Investors Consider Buying AVO Now?
Mission Produce’s recent share price strength reflects improving investor confidence in the company’s underlying fundamentals. The stock’s momentum and supportive technical signals suggest a positive near-term sentiment, reinforced by progress in volume growth, cost efficiency and cash generation as the business transitions into a more stable, cash-generative phase.
However, this optimism is tempered by valuation concerns. The stock trades at a clear premium to peers, implying that much of the operational improvement and future growth is already priced in. As a result, while fundamentals and sentiment appear constructive, sustained upside will depend on Mission Produce’s ability to consistently deliver earnings growth that justifies its elevated valuation. The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Mission Produce Stock Jumps 15% in a Month: Buy, Hold or Sell?
Key Takeaways
Mission Produce Inc. (AVO - Free Report) stock has witnessed momentum in the past month, with shares rising as much as 14.7%. With this growth, the AVO stock has outperformed the Zacks Agriculture – Operations industry’s and the Consumer Staples sector’s growth of 1.2% and 1.1%, respectively. The AVO stock has also outpaced the S&P 500’s growth of 1.5% in the same period.
AVO’s performance is also notably stronger than that of its close competitors, Corteva Inc. (CTVA - Free Report) and Dole Plc (DOLE - Free Report) , which posted growth of 1% and 8.9%, respectively, in the past month. Moreover, the AVO stock has outpaced Adecoagro (AGRO - Free Report) , which has declined 6.4% in the same period.
Mission Produce’s Price Performance
Image Source: Zacks Investment Research
Currently at $13.20, the AVO stock trades 38.1% above its 52-week low of $9.56. The Mission Produce stock’s price also stands 13.3% below its 52-week high of $15.25, reflecting upside potential.
The stock trades above its 50 and 200-day simple moving averages (SMAs), indicating a bullish sentiment. SMA is an essential tool in technical analysis that helps investors evaluate price trends by smoothing out short-term fluctuations. This approach provides a clearer perspective on a stock's long-term direction.
AVO Stock Trades Above 50 & 200-Day SMAs
Image Source: Zacks Investment Research
What’s Driving the AVO Stock’s Momentum
Mission Produce’s recent stock momentum reflects growing investor confidence in the company’s execution, cash generation and long-term growth runway, as highlighted in its fourth-quarter fiscal 2025 results. Despite a year-over-year decline in revenues, driven by lower avocado pricing, the underlying fundamentals of the business strengthened meaningfully. The company demonstrated that its earnings power is increasingly driven by volume, cost efficiency and vertical integration rather than commodity pricing alone.
A key driver has been robust volume growth. Mission Produce delivered a 7% increase in avocado volumes for fiscal 2025, accelerating to 13% growth in the fiscal fourth quarter, supported by higher Mexican supply and a sharp recovery in Peruvian production. Greater fruit availability allowed the company to expand retailer programs globally, particularly in Europe and Asia, where volume growth materially outpaced North America. This geographic diversification strengthens revenue durability across pricing cycles.
Margin resilience has also supported the stock. The gross margin expanded 180 basis points in the fiscal fourth quarter as higher volumes and improved yields in International Farming more than offset lower per-unit pricing. Notably, adjusted EBITDA rose 12% year over year, underscoring the benefits of Mission Produce’s vertically integrated, volume-centric model.
Free cash flow visibility has also improved. With the bulk of its multi-year capital investment cycle completed, Mission Produce generated nearly $90 million in operating cash flow in fiscal 2025 and reduced long-term debt by approximately $18 million. Management expects capital expenditure to decline in fiscal 2026, enhancing cash conversion and balance-sheet flexibility.
AVO’s momentum reflects a business that is scaling volumes, lowering unit costs and transitioning into a stronger cash-generative phase.
Mission Produce’s Estimate Revision Trend
The Zacks Consensus Estimate for AVO’s fiscal 2025 EPS was unchanged in the last 30 days. For fiscal 2025, the Zacks Consensus Estimate for AVO’s sales and EPS implies year-over-year declines of 10.2% and 9.5%, respectively.
Image Source: Zacks Investment Research
AVO’s Premium Valuation
Mission Produce is currently trading at a forward 12-month P/E multiple of 33X, exceeding the industry average of 12.3X.
Image Source: Zacks Investment Research
At 33X P/E, Mission Produce trades at a significant premium to its industry peers. The company’s peers, such as Adecoagro, Corteva and Dole, are delivering growth and trade at more reasonable multiples. Adecoagro, Corteva and Dole have forward 12-month P/E ratios of 9.59X, 18.26X and 10.76X — all significantly lower than that of AVO.
Although the current valuation may seem expensive, it suggests that investors have high expectations for AVO's future performance and growth potential. The company’s capability to execute its strategy and capitalize on a favorable pricing environment is essential for ensuring profitability and consistent performance in its Marketing and Distribution segment. While success in these areas can strengthen its market leadership, its failure can pose serious challenges for AVO.
Should Investors Consider Buying AVO Now?
Mission Produce’s recent share price strength reflects improving investor confidence in the company’s underlying fundamentals. The stock’s momentum and supportive technical signals suggest a positive near-term sentiment, reinforced by progress in volume growth, cost efficiency and cash generation as the business transitions into a more stable, cash-generative phase.
However, this optimism is tempered by valuation concerns. The stock trades at a clear premium to peers, implying that much of the operational improvement and future growth is already priced in. As a result, while fundamentals and sentiment appear constructive, sustained upside will depend on Mission Produce’s ability to consistently deliver earnings growth that justifies its elevated valuation. The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.