As the global population continues to expand, the demand for food is rising exponentially, putting pressure on traditional agricultural practices and creating new opportunities for innovation in food production. This is fueling the agricultural industry, and it is emerging as a critical investment in today’s time.
Amid this backdrop, it could be wise for investors to consider buying the top three agriculture stocks, Mission Produce, Inc. (AVO), Dole plc (DOLE), and ICL Group Ltd (ICL), for long-term growth.
The agriculture sector is increasingly adopting advanced technologies such as precision farming, biotechnology, and automation to boost crop yields and improve sustainability. These innovations enable farmers to optimize resource usage, reduce waste, and increase efficiency, which is essential for meeting the nutritional demands of a growing global population.
Robotic technologies enable more reliable monitoring and management of natural resources, such as air and water quality, giving producers greater control over plant and animal production, processing, distribution, and storage.
Furthermore, global supply chains adapt to new challenges and opportunities. Companies are benefiting from improved logistics and market access. They are also expanding their footprints into emerging markets, with export value in the global agriculture market set to be worth $865.20 billion in 2025.
Also, according to Statista, the global agricultural industry is anticipated to reach $5.52 trillion in 2029, exhibiting a CAGR of 3.8%.
Considering these favorable trends, let’s take a closer look at the fundamentals of the three featured Agriculture stocks, beginning with the third choice.
Stock #3: Mission Produce, Inc. (AVO)
AVO is engaged in the sourcing, farming, packaging, marketing, and distribution of avocados, mangoes, and blueberries to food retailers, wholesalers, and food service customers internationally. The company operates through three segments: Marketing and Distribution; International Farming; and Blueberries.
During the fiscal fourth quarter that ended October 31, 2024, AVO’s net sales increased 37.4% year-over-year to $354.4 million. Its gross profit grew 100.7% from the year-ago value to $55.8 million, while its operating income of $28.6 million rose 297.2% from the prior year’s quarter.
The company’s net income and earnings per share came in at $19.6 million and $0.28, up 161.3% and 154.5% year-over-year from the prior year’s quarter, respectively. Also, its total adjusted EBITDA increased 113.3% year-over-year to $36.9 million.
Analysts expect AVO’s revenue for the first quarter (ended January 2025) to increase 10.4% year-over-year to $285.60 million, while its EPS for the same quarter is expected to be $0.03. Moreover, the company has surpassed Street revenue estimates in each of the trailing four quarters.
Moreover, AVO’s revenue has grown at CAGRs of 11.5% and 6.9% over the past three and five years, respectively. In addition, its total assets increased at 10.9% CAGR over the past three years.
AVO shares have gained 16.2% over the past six months to close the last trading session at $12.25.
AVO’s POWR Ratings reflect this robust outlook. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
AVO has an A grade for Growth and a B for Sentiment. It is ranked #3 out of 24 stocks in the Agriculture industry. Click here to see the additional ratings for AVO (Value, Momentum, Stability, and Quality).
Stock #2: Dole plc (DOLE)
Based in Dublin, Ireland, DOLE engages in sourcing, processing, marketing, and distribution of fresh fruit and vegetables globally. The company operates through three segments: Fresh Fruit; Diversified Fresh Produce - EMEA; and Diversified Fresh Produce - Americas and ROW.
For the nine-month period that ended on September 30, 2024, DOLE’s net revenue increased 2.2% year-over-year, amounting to $6.31 billion. Its operating income amounted to $245.76 million, increasing 6.4% year-over-year.
In addition, the DOLE’s adjusted net income came in at $105.62 million, up 2.3% year-over-year, while its adjusted EPS valued at $1.11 indicates marginal growth from the year-ago value. Also, the company’s adjusted EBITDA rose 3% from the prior year’s period to $317.59 million.
Street expects DOLE’s revenue for the fiscal year 2024 (ended December 2024) to increase marginally year-over-year to $8.35 billion and its EPS to be $1.22. For the fiscal year 2025, its EPS is expected to grow by 15.4% from the prior year to $1.41 and its revenue to be $8.35 billion, respectively.
Over the past three and five years, DOLE’s net income grew at CAGRs of 84.9% and 26%, respectively, while its EPS grew at 66.9% CAGR over the past five years.
The stock has gained 24.9% over the past year and 6.6% over the past nine months to close the last trading session at $13.80.
It’s no surprise that DOLE has an overall rating of B, equating to a Buy in our POWR Ratings system. It has a B grade for Value and Stability. Out of 24 stocks in the Agriculture industry, DOLE is ranked #2.
Beyond what is stated above, we’ve also rated DOLE for Growth, Momentum, Sentiment, and Quality. Get all DOLE ratings here.
Stock #1: ICL Group Ltd (ICL)
Headquartered in Tel Aviv, Israel, ICL operates as a specialty minerals and chemicals company worldwide. It operates through four segments: Industrial Products; Potash; Phosphate Solutions; and Growing Solutions.
On January 16, ICL signed a strategic joint venture (JV) agreement with Shenzhen Dynanonic Co., Ltd. to establish Lithium Iron Phosphate (LFP) Cathode Active Material (CAM) production in Europe, with an initial investment of approximately €285 million. This project demonstrates the company’s commitment to developing high-quality solutions for a sustainable supply chain and expanding its European portfolio.
On December 13, ICL launched VeriQuel R100, an innovative, reactive phosphorus flame retardant (FR) designed for rigid polyurethane insulation products, such as those used for sheathing, in-wall, and PIR roofing. This next-generation technology is an easy transition for manufacturers looking to improve their product’s sustainability and compliance.
ICL’s sales for the third quarter (ended September 30, 2024) were valued at $1.75 billion. It reported gross profit of $596 million, up marginally year-over-year. The company’s attributable net income came in at $113 million, and its earnings per share stood at $0.09. Also, its total adjusted EBITDA increased 10.7% year-over-year, amounting to $383 million.
For the fiscal year 2024 (ended December 2024), its revenue and EPS are expected to be $6.93 billion and $0.37, respectively. The consensus revenue estimate of $7.23 billion for the fiscal year 2025 (ending December 2025) represents a 4.3% increase year-over-year. The consensus EPS estimate of $0.42 for the same period indicates an 11.4% improvement year-over-year.
ICL’s revenue has grown at CAGRs of 3.6% and 4.5% over the past three and five years, respectively. Likewise, the company’s levered FCF has increased at a CAGR of 48.2% over the past three years.
Over the past six months, the stock has surged 38.9%, closing the last trading session at $6.10. It soared 25.3% over the past nine months.
ICL’s bright prospects are reflected in its POWR Ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
It also has a B grade for Value, Stability, and Quality. Within the same industry, it is ranked first. Click here to see ICL’s ratings for Growth, Momentum, and Sentiment.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:
3 Stocks to DOUBLE This Year >
ICL shares were trading at $6.39 per share on Tuesday afternoon, up $0.29 (+4.75%). Year-to-date, ICL has gained 29.35%, versus a 1.43% rise in the benchmark S&P 500 index during the same period.
About the Author: ShreyaRathi
