10 Best Organic Food and Farming Stocks To Invest In

5. The Hain Celestial Group Inc. (NASDAQ:HAIN)

Number of Hedge Fund Holders: 25

The Hain Celestial Group Inc. (NASDAQ:HAIN) is a prominent US-based company specializing in natural and organic foods, as well as personal-care products. It operates in over 75 countries, offering a wide range of items across snacks, baby products, beverages, meal components, and personal care. The Hain Celestial Group Inc. (NASDAQ:HAIN) is one of the best organic food stocks to buy.

In its fiscal Q1 2024 earnings call, the company’s management highlighted the significant growth in the organic formula category. The company is focused on regaining its leadership position by promoting its USDA-certified organic infant formula, which is non-GMO and designed to support brain and eye health. The Hain Celestial Group Inc. (NASDAQ:HAIN) offers a variety of organic options, including dairy and toddler formulations, catering to the needs of parents and babies. On December 23, 2024, Earth’s Best, the company’s organic baby brand in America, announced that its complete line of organic infant formula and toddler milk drinks is fully back in stock.

The company’s performance in the first quarter reflects a solid foundation for growth as The Hain Celestial Group Inc. (NASDAQ:HAIN) continues to streamline its portfolio and improve its operational efficiency, leading to gross margin expansion. The management expects growth to accelerate in the latter half of FY25 due to several factors, including better timing for snack promotions, the recovery of infant formula supplies, and strategic brand building.

Choice Equities Capital Management stated the following regarding The Hain Celestial Group Inc. (NASDAQ:HAIN) in its third-quarter 2024 investor letter:

“The Hain Celestial Group Inc. (NASDAQ:HAIN) – Hain Celestial Group is a recent addition to the portfolio. Since taking the helm in January 2023, CEO Wendy Davidson has been instrumental in driving the company’s transformation. Davidson has simplified the business by divesting non-core brands, focusing on higher-margin, core products, and implementing effective cost-saving measures. These initiatives have already led to noticeable improvements in operational efficiency, lower working capital needs, margin expansion, and a more consistent and desirable brand portfolio, positioning the company for attractive sustainable growth. As a result of these efforts, which have positioned the company well for several dollars of free cash flow per share in coming years, Hain Celestial Group now has lower leverage than most of its peers and stronger top and bottom-line growth prospects, yet the company trades at a highly discounted multiple on a forward-looking view.”