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2 AgriTech and Food Innovation Stocks to Buy for a Stable Portfolio
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Key Takeaways
ADM has been benefiting from improving execution, strategic initiatives and growth opportunities.
ADM is unlocking capacity at four U.S. crush plants, with first-phase investment at around $100 million.
DE is expanding digital capabilities through its Tenna acquisition to drive jobsite productivity.
Agricultural technology (AgriTech) and food innovation companies develop technologies to enhance farming efficiency, sustainability and food production. These companies offer a compelling investment opportunity driven by the need for sustainable food production and improved food security.
AgriTech encompasses innovations such as precision farming, smart irrigation, drone technology and agricultural biotechnology, which boost crop yields, minimize resource usage, and lower food production costs and environmental impact. Food innovation, including plant-based proteins and lab-grown meat, aims to meet the growing demand for sustainable and ethical food alternatives.
The chart below shows the price performance of our two picks in the past three months.
Image Source: Zacks Investment Research
Archer-Daniels-Midland Co.
Archer-Daniels-Midland has been benefiting from improving execution and strategic initiatives. ADM continues to advance its Optimize, Drive and Grow pillars, focusing on reliability, cost savings, throughput and organic growth.
The Nutrition segment is benefiting from Flavors growth, progress at Decatur East, Animal Nutrition improvements and demand for natural ingredients. ADM is also expanding opportunities through biosolutions, precision fermentation and decarbonization while improving asset utilization through debottlenecking.
ADM continues to focus on manufacturing reliability, throughput, transaction-cost reduction and targeted organic growth. Management has identified 10 U.S. crush plants with potential capacity unlocks and is moving forward with four sites in the first phase. ADM estimates the capital intensity of these debottlenecking projects at about one-fourth of a greenfield build, with the first phase potentially requiring around $100 million.
Archer-Daniels-Midland has an expected revenue and earnings growth rate of 6.6% and 62.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.8% over the last 30 days. ADM has a beta of 0.63 and a current dividend yield of 2.94%.
Deere & Co.
Deere continues to view fiscal 2026 as the bottom of the agricultural equipment cycle, with early orders for planters and sprayers running above prior-year levels. DE is also keeping production aligned with retail demand, maintaining tight new inventories and reducing late-model used equipment. As farm economics gradually improve, these trends should support a measured, multi-year replacement cycle rather than a sharp near-term rebound.
Deere is extending its Construction & Forestry strategy beyond machines into jobsite productivity, which can broaden software and service opportunities. The company acquired Tenna in February 2026 for $439 million, adding mixed-fleet operations and asset tracking capabilities that can integrate with Deere’s broader digital ecosystem.
DE also highlighted an integrated jobsite vision that combines Tenna with other digital tools to support safer and more efficient jobsites. DE expects technology, Tenna and broader equipment offerings to expand Construction & Forestry’s role in the company’s long-term growth strategy.
Deere has an expected revenue and earnings growth rate of 10.4% and 29.2%, respectively, for the current year (ending October 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 0.7% over the last 30 days. DE has a beta of 0.89 and a current dividend yield of 1%.
View the Zacks #1 Rank List
Image: Bigstock
2 AgriTech and Food Innovation Stocks to Buy for a Stable Portfolio
Key Takeaways
Agricultural technology (AgriTech) and food innovation companies develop technologies to enhance farming efficiency, sustainability and food production. These companies offer a compelling investment opportunity driven by the need for sustainable food production and improved food security.
AgriTech encompasses innovations such as precision farming, smart irrigation, drone technology and agricultural biotechnology, which boost crop yields, minimize resource usage, and lower food production costs and environmental impact. Food innovation, including plant-based proteins and lab-grown meat, aims to meet the growing demand for sustainable and ethical food alternatives.
At this stage, it will be prudent to invest in AgriTech and Food Innovation stocks for a stable portfolio in the second half of 2026. Two such stocks are: Archer-Daniels-Midland Co. (ADM - Free Report) and Deere & Co. (DE - Free Report) . Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our two picks in the past three months.
Image Source: Zacks Investment Research
Archer-Daniels-Midland Co.
Archer-Daniels-Midland has been benefiting from improving execution and strategic initiatives. ADM continues to advance its Optimize, Drive and Grow pillars, focusing on reliability, cost savings, throughput and organic growth.
The Nutrition segment is benefiting from Flavors growth, progress at Decatur East, Animal Nutrition improvements and demand for natural ingredients. ADM is also expanding opportunities through biosolutions, precision fermentation and decarbonization while improving asset utilization through debottlenecking.
ADM continues to focus on manufacturing reliability, throughput, transaction-cost reduction and targeted organic growth. Management has identified 10 U.S. crush plants with potential capacity unlocks and is moving forward with four sites in the first phase. ADM estimates the capital intensity of these debottlenecking projects at about one-fourth of a greenfield build, with the first phase potentially requiring around $100 million.
Archer-Daniels-Midland has an expected revenue and earnings growth rate of 6.6% and 62.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.8% over the last 30 days. ADM has a beta of 0.63 and a current dividend yield of 2.94%.
Deere & Co.
Deere continues to view fiscal 2026 as the bottom of the agricultural equipment cycle, with early orders for planters and sprayers running above prior-year levels. DE is also keeping production aligned with retail demand, maintaining tight new inventories and reducing late-model used equipment. As farm economics gradually improve, these trends should support a measured, multi-year replacement cycle rather than a sharp near-term rebound.
Deere is extending its Construction & Forestry strategy beyond machines into jobsite productivity, which can broaden software and service opportunities. The company acquired Tenna in February 2026 for $439 million, adding mixed-fleet operations and asset tracking capabilities that can integrate with Deere’s broader digital ecosystem.
DE also highlighted an integrated jobsite vision that combines Tenna with other digital tools to support safer and more efficient jobsites. DE expects technology, Tenna and broader equipment offerings to expand Construction & Forestry’s role in the company’s long-term growth strategy.
Deere has an expected revenue and earnings growth rate of 10.4% and 29.2%, respectively, for the current year (ending October 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 0.7% over the last 30 days. DE has a beta of 0.89 and a current dividend yield of 1%.