7 Cheap Food Stocks to Buy According to Analysts

2. Nomad Foods Limited (NYSE:NOMD)

Price Target Upside: 38.00% 

Number of Hedge Fund Holders: 30 

Nomad Foods Limited (NYSE:NOMD) is a leading frozen food company that specializes in producing and distributing a wide range of frozen products across Europe. The company’s portfolio includes popular brands such as Birds Eye, Findus, and Iglo, offering everything from frozen vegetables and fish to ready meals and plant-based alternatives.

In Q2 2024, Nomad Foods Limited (NYSE:NOMD) achieved a 1.1% growth in net sales, reaching $830.7 million, driven by a 1.6% increase in sales volume. Gross margin improved to 30.9%, up 270 basis points, due to a favorable product mix and enhanced supply chain productivity. Additionally, advertising and promotion expenditures rose by 30% year-over-year to strengthen brand presence and product visibility.

Nomad Foods Limited plans to expand its product portfolio, particularly in the chicken segment, through new launches under the Birds Eye and Findus brands in Germany and Italy. The company reaffirmed its full-year guidance, expecting net revenue growth of 3%-4% and adjusted EBITDA growth of 4%-6%. Nomad Foods anticipates that economic easing in Europe will boost its business in these emerging markets.

The 30 hedge funds are bullish on Nomad Foods as of Q2 2024. The stock holds a Strong Buy rating based on 4 Wall Street analysts. According to analysts, the average 12-month price target for Nomad Foods is $23.25, with a high of $25.00 and a low of $21.00. This represents a 31.88% increase from the current price of $17.63.