In this article we discuss the 5 healthy and sustainable food stocks to buy. If you want to read our detailed analysis of the food industry, go directly to the 12 Healthy and Sustainable Food Stocks to Buy.
5. Herbalife Nutrition Ltd. (NYSE: HLF)
Market Capitalization: $5.611 billion
Number of Hedge Fund Holders: 40
Ranking fifth in the list is Herbalife Nutrition Ltd. (NYSE: HLF), a California-based company that provides dietary supplements and meal replacement protein shakes and targets weight management and nutritious food markets across the world. This global nutrition corporation was ranked as the number 1 brand in weight management by Euromonitor International. The company has experienced a surge in demand with net sales rising to over $1.5 billion in Q1 of 2021, showing a year-over-year increase of 18.9%. This is a record for the company with an earnings surprise of 33.96%. Herbalife Nutrition Ltd. (NYSE: HLF) also reported a diluted earnings per share of $1.33 for the quarter ended March 31st, 2021, compared to $0.32 in the same quarter of the previous year. The adjusted EPS grew by 61.4% over the year. The company raised its full year guidance for 2021 and projects a 9 to 15% growth in net sales while diluted EPS is projected to be in the $4.65 – $5.05 range at the end of the fiscal year.
40 hedge funds held stakes in Herbalife Nutrition Ltd. (NYSE: HLF) worth over $1.9 billion at the end of Q1 of 2021 compared to 41 hedge funds in the preceding quarter holding stakes worth $2.7 billion.
4. Beyond Meat, Inc. (NASDAQ: BYND)
Market Capitalization: $9.16 billion
Number of Hedge Fund Holders: 26
Beyond Meat, Inc. (NASDAQ: BYND) is a popular food company that is known for selling plant-based meat alternatives globally. Founded in 2009, the company has established itself as a leader in the healthy and sustainable food industry as more people are making the shift towards veganism due mainly due to ethical and environmental reasons. Beyond Meat, Inc. (NASDAQ: BYND) has gained significant momentum during the year with its recent partnerships with well-known fast-food chains like KFC. The company’s revenue grew by 11% to $108.2 million in the first quarter of 2021. In its North American segment, Beyond Meat experienced a surge of almost 28% in sales and similar trends were seen internationally. The company has forecasted its Q2 sales to lie within the range of $135 to $150 million. With a market cap of $9.16 billion, Beyond Meat, Inc. (NASDAQ: BYND) ranks fourth in our list of 12 healthy and sustainable food stocks to buy.
3. The Kroger Co. (NYSE: KR)
Market Capitalization: $28.55 billion
Number of Hedge Fund Holders: 35
The Kroger Co. (NYSE: KR) has landed a spot in the list of 10 health and sustainable food stocks to buy due to its organic food segment. It consists of organic produce, dairy products, meat and seafood, as well as a healthy grocery section. The grocery giant has shown exemplary performance and beat market estimates in Q1 of 2021. Shares of the company gained 4.3% over the past month.
The Kroger Co. (NYSE: KR) declared adjusted earnings of $1.19 per share while total revenue was reported to be $41.3 billion beating the consensus estimate of $39.78 billion. The company also raised its full-year guidance for 2021 and expects adjusted earnings to lie within the $2.95-$3.10 range. Kroger has also recently partnered up with Drone Express to expand its delivery capabilities with the use of autonomous drones.
35 hedge funds in the database of Insider Monkey held stakes worth over $3.1 billion in NYSE:KR in Q1 of 2021 compared to 36 hedge funds holding stakes worth $2.4 billion in the preceding quarter. Kroger has landed the number 3 spot in the list of 12 healthy and sustainable food stocks to buy.
2. General Mills, Inc. (NYSE: GIS)
Market Capitalization: $37.9 billion
Number of Hedge Fund Holders: 31
General Mills, Inc. (NYSE: GIS) is a food company with a diverse portfolio of products including a dedicated natural and organic food section. According to the company, 1 out of 10 food products in their product mix is made with healthy and organic ingredients, earning it the number 2 spot in the list of 12 healthy and sustainable food stocks to buy. General Mills, Inc. (NYSE: GIS) also signed an agreement with Tyson Foods for the acquisition of its pet treat’s segment. Headquartered in Minneapolis, the company reported an adjusted EPS of $0.82 per share showing a 6% year-over-year increase. Total revenue was reported to be $4.5 billion for Q1 of 2021 which is a year-over-year growth of 8%. Sales in the company’s organic food section experienced a surge of 7% during the quarter due to the increase in demand for home food products during the COVID-19 pandemic.
Nelson Capital Management featured General Mills, Inc. (NYSE: GIS) in its fourth quarter investor letter for 2020. This is what the investment management firm had to say about the stock:
“We purchased a position in General Mills (tkr: GIS). General Mills is a manufacturer and marketer of branded consumer foods and pet food products sold mainly through retail stores. It has greatly benefited from the “people eating at home” theme during the pandemic. Although this growth driver is likely to persist through 2021, that is not the main reason to own General Mills. The management team has done an excellent job diversifying product lines, and has successfully identified new trends and brought products forth accordingly. Some notable brands and products include Annie’s, Cheerios, Betty Crocker, Blue Buffalo, EPIC, Pillsbury and Yoplait. General Mills has maintained a healthy balance sheet, consistent with industry practice. It is relatively inexpensive with a P/E ratio of 15x (about half that of Hormel) and pays a 3.4% dividend, making it a great core holding within the consumer staples sector.”
1. Amazon.com, Inc. (NASDAQ: AMZN)
Market Capitalization: $1.722 trillion
Number of Hedge Fund Holders: 243
Amazon.com, Inc. (NASDAQ: AMZN) has also emerged as a leading grocery provider in the US and is projected to beat Walmart soon. The company is investing heavily to create an omnichannel ecosystem and increase its grocery delivery capabilities by over 60%. Customers with a Prime membership can also access Amazon Fresh, the company’s grocery delivery subsidiary, for free. The e-commerce platform has a dedicated healthy foods store that offers a variety of products ranging from snack foods to produce. The company’s stock currently has a buy rating from the Bank of America. The company’s acquisition of Whole Foods in 2017 was a significant driver of growth in the organic food market.
For the first quarter of 2021, AMZN earnings beat consensus estimates by a huge margin. The company declared a total revenue of $108.5 billion for the quarter which beat expectations by 3.8%. The EPS was reported to be $15.79 and an operating profit margin of 30.8%. Amazon’s stock has provided a return of approximately 46.3% compared to the S&P 500’s total return of 43.3%. Amazon.com, Inc. (NASDAQ: AMZN) has earned the top spot in our list of 12 healthy and sustainable food stocks to buy.
You can also take a peek at the 20 Most Unhealthiest Countries In the World and 20 Best Paying Summer Jobs for College Students.
