5 Best Organic Food and Farming Stocks To Buy

In this article, we discuss the 5 best organic food and farming stocks to buy. To read the detailed analysis of the agriculture industry and organic food and farming segment, go directly to the 11 Best Organic Food and Farming Stocks To Buy.

5. Bunge Limited (NYSE:BG)

Number of Hedge Fund Holders: 36

Bunge Limited (NYSE:BG) is an agribusiness headquartered in Missouri. The company is involved in the buying, storing, processing, and selling of different food items, including but not limited to, grains and oilseeds, sugar, ethanol, and animal feed. Its subsidiary, Bunge Loders Croklaan B.V., produces and sells various organic oils, fats, and lecithins.

On October 26, Bunge Limited (NYSE:BG) released its Q3 earnings result in which it reported a non-GAAP EPS of $2.99, topping the expected EPS estimates by $0.49. The company generated a revenue of $14.23 billion.

On October 5, Bunge Limited (NYSE:BG) announced that it would acquire Viterra Limited, a subsidiary of Danelo Limited, including the issuance of over 65.6 million common shares at a nominal value of $0.01 per share. The deal is expected to reach its completion by mid-2024 and is likely to position Bunge Limited (NYSE:BG) as the biggest oilseed processor in the world.

4. The Kraft Heinz Company (NASDAQ:KHC)

Number of Hedge Fund Holders: 39

The Kraft Heinz Company (NASDAQ:KHC) is one of the largest food and beverages companies in the U.S. and came into existence after Kraft Foods and H.J. Heinz Company merged. The Kraft Heinz Company (NASDAQ:KHC) is one of the best organic food and farming stocks as it focuses on bringing organic food brands into focus through its business called Springboard Brands.

Out of the 910 elite hedge funds tracked by Insider Monkey, 39 hedge funds owned a stake in The Kraft Heinz Company (NASDAQ:KHC) stock in Q2, compared to 34 in the previous quarter. Warren Buffett’s Berkshire Hathaway was the biggest stakeholder of the company with 325.635 million shares worth $11.56 billion.

3. The Kroger Co. (NYSE:KR)

Number of Hedge Fund Holders: 43

The Kroger Co. (NYSE:KR) is an Ohio-based grocery retailer that operates online and in supermarkets, drug stores, department stores, and more. The company sells food items and non-food products. It is one of the best organic food and farming stocks as it not only sells organic food items but also has an organic brand known as Simple Truth which sells products that are USDA organic certified.

On September 14, The Kroger Co. (NYSE:KR) declared a $0.29 quarterly dividend that is payable by December 1 to the shareholders of record on November 15. As of October 28, the company’s dividend yield is 2.61%.

In Q2, out of the 910 elite hedge funds tracked by Insider Monkey, 43 held a stake in The Kroger Co. (NYSE:KR) with a combined stake value of $3.14 billion.

Oakmark Funds mentioned The Kroger Co. (NYSE:KR) in its third quarter 2023 investor letter. Here is what it said:

“The Kroger Co. (NYSE:KR) is the second-largest grocery retailer in America behind only Walmart. Although the grocery industry is highly competitive, Kroger’s scale advantages allow it to offer a more compelling value proposition than smaller peers and earn higher returns on capital. In recent years, the market has assigned Kroger a lower multiple due to concerns that e-commerce would disrupt traditional brick-and-mortar grocery. However, we believe the company’s performance through the pandemic highlighted that its store footprint, distribution infrastructure, technology investments and strong brand all position the company well for a world with higher online grocery adoption. The stock trades for just 10x our estimate of next year’s EPS, which we believe is attractive given Kroger’s competitive positioning and earnings growth outlook. The pending merger with Albertsons has the potential to drive accelerated earnings growth and further scale advantages. If the merger is not approved, the company will have the capacity to return approximately 25% of its market cap to shareholders.”

2. Corteva, Inc. (NYSE:CTVA)

Number of Hedge Fund Holders: 46

Corteva, Inc. (NYSE:CTVA) is an Indiana-based company that engages in distributing seed, crop protection, and digital solutions in North America, Latin America, Europe, Africa, Asia-Pacific, and the Middle East. The company’s products and solutions, like Utrisha N nutrient efficiency biostimulant, enable farmers to do organic farming.

On October 20, Oppenheimer analyst Kristen Owen upgraded Corteva, Inc. (NYSE:CTVA)’s stock to an Outperform rating with a $67 price target.

On September 13, Corteva, Inc. (NYSE:CTVA) introduced Reklemel active, a nematicide to help farmers battle against plant-parasitic nematodes that are estimated to cause damage worth $80 billion per year.

Oakmark Funds talked about Corteva, Inc. (NYSE:CTVA) in its third quarter 2023 investor letter. Here is what it said:

“Corteva, Inc. (NYSE:CTVA) is a leading provider of seed and crop protection chemicals. We believe the seed and crop protection markets have sizeable barriers to entry due to the duration and magnitude of investment required to compete. Both industries require constant innovation: Farmers expect seed yield improvement each year while nature develops immunity to crop protection chemicals over time. As a result, advantages accrue to the largest players with the most R&D resources. Within this context, we believe Corteva is very well positioned. The company has scale, well-recognized brands, a loyal customer base, and a promising R&D pipeline. In addition, we see idiosyncratic opportunities for Corteva to improve its profitability over time, and we believe the current management team is executing well against this opportunity. More recently, the stock has been pressured by near-term headwinds related to inventory destocking and declining crop prices. We see this weakness as an opportunity to invest in a high-quality and defensible business at a discount to both its own historical trading multiple and private market transactions.”

1. General Mills, Inc. (NYSE:GIS)

Number of Hedge Fund Holders: 48

General Mills, Inc. (NYSE:GIS) is one of the most famous U.S. food processing companies that also markets processed consumer food that is items available in around 100 countries. The multinational corporation has 100 brands under its belt, including but not limited to, Betty Crocker, Bisquick, Cheerios, and Häagen-Dazs.

General Mills, Inc. (NYSE:GIS) is one of the best organic food and farming stocks as it uses organic ingredients in many of its products under its various brands like Cascadian Farm, Annie’s, and others.

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