The agriculture industry is experiencing a paradigm shift driven by the integration of advanced technologies and the evolving preferences of modern consumers. Amid this backdrop, investors could scoop up shares of fundamentally stable agriculture stocks, Mission Produce, Inc. (AVO), Dole plc (DOLE), and ICL Group Ltd (ICL).
The broad landscape of agriculture has changed quite much in the past few years. This fundamental change can be traced back to the advent of sustainable farming practices. To meet the goal of supplying society's food and textile demands without compromising the prospects of future generations, various practices have been implemented that have changed the landscape for the better.
With the release of new and upcoming technologies that are actively helping other industries to prosper, the agriculture sector is quick to welcome them. to optimize and improve sustainability in agricultural production, as well as artificial intelligence and robotic automation, have promoted resilience in the agricultural sector by adapting to various uncertainties.
On a separate note, consumers' preferences have changed drastically over the past decade. Young adults now prefer organic, vegan, and sustainable products owing to an overall rise in wealth of the millennial generation in recent times. These consumers are actively supporting the farming industry through their increased demands for higher-priced products, directly supporting the sector at its core.
That being said, according to a report published by The Business Research Company, the agriculture market is expected to reach $20.63 trillion by 2029, growing at a CAGR of 7.4%.
Now, let us dive deep into the fundamentals of three Agriculture stocks, starting with #3.
Stock #3: Mission Produce, Inc. (AVO)
AVO sources, farms, packages, markets, and distributes avocados, mangoes, and blueberries to food retailers, wholesalers, and food service customers. The company has three segments: Marketing and Distribution; International Farming; and Blueberries.
On November 8, 2024, AVO announced the implementation of a policy to address illegal deforestation associated with avocado farming in Michoacán, Mexico. The company will prohibit its direct sourcing operations from select orchards in accordance with the policies of the Ministry of Environment for the State of Michoacán. The policy highlights the company's commitment to sustainability.
For the fiscal 2024 fourth quarter that ended October 31, 2024, AVO’s net sales increased 37.4% year-over-year to $354.50 million. Its operating income rose 297.2% from the year-ago value to $28.60 million.
Additionally, adjusted net income and adjusted net income per share grew 161.3% and 154.5% from the prior year’s quarter to $19.60 million and $0.28, respectively.
Analysts expect AVO's revenue for the fiscal 2025 first quarter, which ended in January, to increase 10.4% year-over-year to $285.60 million. Moreover, its revenue for the fiscal 2025 second quarter (ending in April) is expected to come in at $269.50 million. The company has surpassed the consensus revenue and EPS estimates in each of the four trailing quarters, which is impressive.
AVO’s stock has surged 20.4% over the past six months, closing the last trading session at $12.04.
AVO’s POWR Ratings reflect its sound fundamentals. The stock has an overall rating of B, translating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
AVO has an A grade for Growth and a B for Sentiment. Within the Agriculture industry, AVO is ranked #3 out of 24 stocks.
In addition to the POWR Rating highlighted above, you can check AVO’s ratings for Value, Stability, Quality, and Momentum here.
Stock #2: Dole plc (DOLE)
Headquartered in Dublin, Ireland, DOLE engages in sourcing, processing, marketing, and distribution of fresh fruit and vegetables. The company offerings include bananas, grapes, avocados, apples, and potatoes under the DOLE brand. Its segments are: Fresh Fruit; Diversified Fresh Produce - EMEA; and Diversified Fresh Produce - Americas and ROW.
Last year DOLE announced the completion of the sale of its 65% equity stake in Progressive Produce LLC to PTF Holdings, LLC, the parent company of Pacific Trellis Fruit, LLC, a portfolio company of Arable Capital Partners, LLC. The company reported receiving $120.25 million of gross cash proceeds from the sale.
For the fiscal 2024 third quarter that ended September 30, 2024, DOLE’s net revenues increased marginally year-over-year to $2.06 billion. Its operating income came in at $47.73 million. Moreover, the company’s adjusted net income and adjusted net income per share amounted to $18.03 million and $0.19, respectively.
The consensus revenue estimate of $8.37 billion for the fiscal year ending in December 2025 reflects a marginal year-over-year increase. Its EPS for the same period is expected to rise 15.9% year-over-year to $1.42. Moreover, the company has surpassed the consensus revenue and EPS estimates in three of the four trailing quarters.
DOLE’s stock has surged 10.2% over the past nine months and 23.7% over the past year to close the last trading session at $13.51.
The stock’s stable fundamentals are mirrored in its POWR Ratings. It has an overall rating of B, which translates to a Buy in our proprietary rating system.
DOLE has a B grade for Value and Stability. Within the Agriculture industry, it is ranked #2 out of 24 stocks.
Click here to access DOLE’s Sentiment, Quality, and Growth ratings.
Stock #1: ICL Group Ltd (ICL)
Headquartered in Tel Aviv, Israel, ICL is a specialty minerals and chemicals company. The company has four segments: Industrial Products; Potash; Phosphate Solutions; and Growing Solutions.
On January 30, 2025, GROWERS, an ICL-owned company, announced impressive results of its customizable loyalty program technology. Powered by Axiom, an advanced AI technology engine, agricultural retailers in the United States using the GROWERS Loyalty Program noted a significant increase in sales among members compared to non-members in 2024.
With the AI boom already in place, the AI-powered agriculture loyalty program could aid the company in attaining a leading position in the market.
On January 16, 2025, ICL announced a joint venture agreement with Shenzhen Dynanonic Co., Ltd., to establish lithium iron phosphate cathode active material production in Europe.
With an initial investment of €285 million ($298.99 million), the project highlights the company's commitment to developing high-quality solutions for a sustainable supply chain and its expansion into the European markets.
For the fiscal 2024 third quarter that ended September 30, ICL’s sales came in at $1.75 billion. Its adjusted operating income increased 7% year-over-year to $243 million. Moreover, adjusted net income attributable to shareholders and adjusted EPS amounted to $136 million and $0.11, respectively.
Street expects ICL’s revenue and EPS for the fiscal year ending in December 2025 to increase 4.3% and 11.4% year-over-year to $7.23 billion and $0.42, respectively. Furthermore, the company has surpassed the consensus EPS estimates in each of the four trailing quarters, which is notable.
ICL’s stock has surged 33.3% over the past three months and 39.7% over the past six months, ending the last trading session at $5.88.
ICL’s strong fundamentals are mirrored in its POWR Ratings. The stock has an overall rating of A, translating to a Strong Buy in our proprietary rating system.
ICL has a B grade for Value, Quality, and Stability. The stock has topped the 24-stock Agriculture industry.
To access ICL’s Growth, Sentiment, and Momentum ratings, click here.
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ICL shares were unchanged in premarket trading Monday. Year-to-date, ICL has gained 19.03%, versus a 4.03% rise in the benchmark S&P 500 index during the same period.
About the Author: Aritra_Gangopadhyay
Aritra is a financial journalist dedicated to breaking down complex financial topics into simple, actionable insights. Holding a Master’s degree in Economics, he uses his analytical expertise to help investors uncover unique opportunities for long-term success.
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