In this article, we will look at the 10 Best Vegan Stocks to Buy According to Analysts.
Overview of the Global Vegan Food Market
According to Grand View Research, the global vegan food market was valued at $16.55 billion in 2022. It is anticipated to grow at a compound annual growth rate of 10.7% between 2023 and 2030, reaching a projected revenue of around $37.45 billion by 2030. North America was the largest revenue-generating market in 2021. Country-wise, South Africa is anticipated to register the market’s highest compound annual growth rate between 2022 and 2030.
The primary reason behind this growth is the continually growing awareness regarding the benefits of a vegan diet. Concerns about animal cruelty and animal health are supporting the growth of this industry, causing people to shift from an animal-based to a plant-based and vegan diet. Grand View Research reported that Grubhub, a major online food delivery application, accounted for the upsurge of 17% in overall vegan food deliveries in 2021.
Concerns Surrounding the American Economy and the Food Industry
Despite the positive outlook of the vegan food market, the overall food industry in the US is a subject of concern due to the possible effects of Trump’s tariffs and slowing economic growth in the country. Consumers are reflecting these trends, as The Expectations Index dropped to a 72.9 reading, reflecting a decrease of 9.3 points. The measure has tumbled below the level consistent with recession for the first time since June 2024, according to CNBC.
In addition, The Conference Board’s Consumer Confidence Index dropped to 98.3 for February, reflecting a slip of nearly 7% and below the Dow Jones forecast of 102.3. We discussed what tariffs and potentially rising inflation could mean for the food industry in a recently published article on the 10 Cheap Food Stocks to Buy According to Hedge Funds. Here is an excerpt from the article:
Economists and experts opine that the situation is unpredictable and worrisome. Trump’s tariffs may ignite another bubbling of inflation in a scenario where the Federal Reserve is weighing the odds of whether to slash interest rates further or hold steady as experts and policymakers chalk out the effects of the President’s aggressive trade and fiscal policies, as reported by CNBC.
Consumers are reflecting the worries of economists and experts, as the 12-month inflation expectations rose to 6%, up from 5.2% in the last month and considerably higher than the Fed’s steady goal of 2%. CNBC reported that Guichard opined:
“This increase likely reflected a mix of factors, including sticky inflation but also the recent jump in prices of key household staples like eggs and the expected impact of tariffs. There was a sharp increase in the mentions of trade and tariffs, back to a level unseen since 2019. Most notably, comments on the current administration and its policies dominated the responses.”
Treasury Secretary Scott Bessent rang caution bells regarding “sticky” inflation and the potential for slow growth. He attributed the cause to former President Biden’s administration, saying that he fostered an economy too dependent on government spending. He said the government’s plan now is to develop a more diverse economy through deregulation, tax cuts, and tariffs. However, such a scenario is likely to have adverse effects on the food industry. Economists believe that such aggressive policies may drive the cost of food, apparel, toys, and appliances.
With these trends in mind, let’s examine the 10 best vegan stocks to buy according to analysts.
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Our Methodology
We sifted through stock screeners, online rankings, and ETFs to compile a list of vegan stocks. We then selected the top 10 with the highest analyst upside potential. We also added the number of hedge fund holders for these stocks as of fiscal Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of analysts’ average upside potential, as of March 4.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Vegan Stocks to Buy According to Analysts
10. Ingredion Incorporated (NYSE:INGR)
Analyst Upside: 20.64%
Number of Hedge Fund Holders: 36
Ingredion Incorporated (NYSE:INGR) is a global ingredients solutions provider that transforms fruits, vegetables, grains, and other plant-based materials into value-added ingredient solutions for several markets, including food, beverage, animal nutrition, brewing, and industrial markets. The company’s products are primarily derived from the processing of corn and other starch-based materials, including rice, potato, and tapioca. It operates through four segments: North America, South America, Asia-Pacific, and Europe, Middle East and Africa (EMEA).
In 2024, Ingredion Incorporated (NYSE:INGR) reiterated its commitment to robust shareholder returns through $210 million in dividends and $216 million of share repurchases. It is determined to continue returning value to shareholders in the future. Ingredion Incorporated (NYSE:INGR) reported a 6% and 9% dip in its net sales in fiscal Q4 2024 and full year 2024, respectively. This drop was attributed to factors such as price mix challenges, foreign exchange impacts, and a decrease in revenue due to the sale of its South Korean business.
However, the company’s EPS for fiscal Q4 2024 came to $2.63, surpassing analyst estimates and reflecting a 34% growth compared to last year. Adjusted EPS for the full year 2024 stood at $10.65, compared to $9.42 in 2023. This growth was attributed to continued sales volume momentum in the Texture & Healthful Solutions and Food & Industrial Ingredients segments.
Polaris Global Equity Strategy stated the following regarding Ingredion Incorporated (NYSE:INGR) in its Q3 2024 investor letter:
“Five of six consumer staples holdings had double-digit gains, led by Ingredion Incorporated (NYSE:INGR) and Koninklijke Ahold Delhaize. U.S. food/beverage ingredient supplier, Ingredion, announced strong second quarter results, citing growth in its texture & healthful solutions, while its food and industrial segments responded to robust customer demand. In conjunction with sales growth, Ingredion’s Cost2Compete program has proven a boon for the company, already realizing more than $18 million in run-rate savings in just one quarter.”
9. Mission Produce, Inc. (NASDAQ:AVO)
Analyst Upside: 37.65%
Number of Hedge Fund Holders: 22
Mission Produce, Inc. (NASDAQ:AVO) specializes in farming, marketing, packing, and distributing avocados to distributors, food retailers, and produce wholesalers. Its operations are divided into three segments: Marketing and Distribution, International Farming, and Blueberries. Its Blueberries segment manages a farming operation that cultivates blueberry plants in Peru. The Company also provides merchandising and promotional support, hands-on training, and insights into market trends.
Mission Produce, Inc. (NASDAQ:AVO) has a strong integrated business and can seamlessly transition between regions to maintain a consistent customer supply. This gives it a competitive market edge, allowing it to deliver robust per-unit margins. Mission Produce, Inc. (NASDAQ:AVO) also boasts a comprehensive sourcing network, allowing it to maintain a reliable supply even during disruption.
It reported a strong fiscal 2024, delivering $1.2 billion in revenue. The company’s cash flow generation painted an optimistic picture, as it delivered a $64.2 million increase in operating cash flow in fiscal 2024 versus fiscal 2023. It also generated $107.8 million in adjusted EBITDA, reflecting the strength of its business model and industry-leading position. Mission Produce, Inc. (NASDAQ:AVO) takes the ninth spot on our list of the best vegan stocks to buy according to analysts.
