In this article, we discuss 5 food stocks to buy amid the upcoming global crisis. If you want to see more stocks in this selection, click 10 Food Stocks to Buy Amid Upcoming Global Crisis.
5. CF Industries Holdings, Inc. (NYSE:CF)
Number of Hedge Fund Holders: 67
CF Industries Holdings, Inc. (NYSE:CF) is an Illinois-based company that manufactures and sells hydrogen and nitrogen products for the fertilizer, energy, and industrial markets worldwide. The company’s primary offerings include anhydrous ammonia, granular urea, urea ammonium nitrate, and ammonium nitrate products.
CF Industries Holdings, Inc. (NYSE:CF) posted on May 4 a Q1 revenue of $2.87 billion, up 173.66% year-over-year, exceeding estimates by $246 million. On May 31, Piper Sandler analyst Charles Neivert raised the price target on CF Industries Holdings, Inc. (NYSE:CF) to $132 from $120 and reiterated an Overweight rating on the shares. The analyst believes that rising grain prices will support high nutrient values, Neivert tells investors in a research note.
According to Insider Monkey’s database, 67 hedge funds were bullish on CF Industries Holdings, Inc. (NYSE:CF) at the end of March 2022, compared to 58 funds in the preceding quarter. Soroban Capital Partners held the largest stake in the company, with 2.6 million shares worth $269.4 million.
4. United Natural Foods, Inc. (NYSE:UNFI)
Number of Hedge Fund Holders: 20
United Natural Foods, Inc. (NYSE:UNFI) is an American company that distributes natural, organic, specialty, and traditional grocery and food products in the United States and Canada. The company focuses on the wholesale of healthy food options.
On April 8, CL King analyst Andrew Wolf remained highly constructive on United Natural Foods, Inc. (NYSE:UNFI)’s strategies to drive shareholder value by leveraging its superior competitive scale and its customer-centric focus. The analyst told investors that in the intermediate term, execution in sales, marketing, and logistics seems to be improving even amid a tightening supply environment. The analyst maintained his Buy rating and $52 price target on the stock.
Among the hedge funds tracked by Insider Monkey, 20 funds reported long positions in United Natural Foods, Inc. (NYSE:UNFI) at the end of Q1 2022, with collective stakes worth $115.40 million. Mark Coe’s Intrinsic Edge Capital is the leading stakeholder of the company, with 558,287 shares worth $23 million.
3. Archer-Daniels-Midland Company (NYSE:ADM)
Number of Hedge Fund Holders: 42
Archer-Daniels-Midland Company (NYSE:ADM) was founded in 1902 and is headquartered in Chicago, Illinois. The company manufactures and distributes agricultural commodities, products, and ingredients worldwide, operating through Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition segments. Archer-Daniels-Midland Company (NYSE:ADM) posted above consensus earnings and revenue in Q1 2022.
Baird analyst Ben Kallo raised the price target on Archer-Daniels-Midland Company (NYSE:ADM) on April 27 to $108 from $73 and maintained an Outperform rating on the shares. The analyst observed that Q1 results were very good and the robust performance supported its 2025 target earnings per share of $6.00 to $7.00. He said the company is benefiting from dislocation across the agriculture supply chain, while working through multiple operational obstacles.
According to the hedge funds tracked by Insider Monkey, 42 funds were bullish on Archer-Daniels-Midland Company (NYSE:ADM) at the end of Q1 2022, with combined stakes valued at $625.68 million. Ric Dillon’s Diamond Hill Capital is the leading shareholder of the company, with 4.75 million shares worth $429.15 million.
2. Performance Food Group Company (NYSE:PFGC)
Number of Hedge Fund Holders: 29
Performance Food Group Company (NYSE:PFGC) is a Virginia-based company that markets and distributes food and food-related products in the United States. The company offers frozen foods, groceries, beverages, beef, pork, poultry, and seafood. The company reported a revenue of $13.08 billion for the first quarter of 2022, up 81.59% year-over-year, outperforming consensus estimates by $3.42 million.
On May 13, Deutsche Bank analyst Brian Mullan maintained a Buy rating on Performance Food Group Company (NYSE:PFGC) but lowered the firm’s price target on the shares to $58 from $62 after the fiscal Q1 results.
According to Insider Monkey’s data, 29 hedge funds were bullish on Performance Food Group Company (NYSE:PFGC) at the end of Q1 2022, compared to 33 funds in the last quarter. The collective stakes held in Q1 amounted to $619 million.
Here is what ClearBridge Investments Select Strategy has to say about Performance Food Group Company (NYSE:PFGC) in its Q4 2021 investor letter:
“Performance Food Group is another example of a quality franchise bought during a depressing period for the foodservice industry that has flexed its balance sheet to make acquisitions of weaker players and continues to consolidate its leading market share.”
1. Nutrien Ltd. (NYSE:NTR)
Number of Hedge Fund Holders: 60
Nutrien Ltd. (NYSE:NTR) is a Canadian company that offers potash, nitrogen, phosphate, and sulfate products to growers directly in the United States, Canada, South America, and Australia. The company declared on May 18 a $0.48 per share quarterly dividend, in line with previous. The dividend is payable on July 15, to shareholders of record on June 30.
Piper Sandler analyst Charles Neivert raised the price target on Nutrien Ltd. (NYSE:NTR) on May 31 to $125 from $112 and reiterated an Overweight rating on the shares. The analyst believes that grain prices will remain elevated and drive high nutrient values.
According to Insider Monkey’s database, 60 hedge funds were bullish on Nutrien Ltd. (NYSE:NTR) at the end of March 2022, up from 36 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the largest shareholder of the company, with 8.3 million shares worth $870 million.
Here is what Miller/Howard Investments had to say about Nutrien Ltd. (NYSE:NTR) in its Q1 2021 investor letter:
“For the most part, performance of the stocks within the Income-Equity Strategies was skewed towards the high-performing market sectors with two exceptions – our consumer discretionary and technology stocks both did better than their broad market peers… We bought Nutrien (NTR), a producer of fertilizer, which we believe should benefit from increasing crop prices.”
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