1. Dole (NYSE:DOLE)
Number of Hedge Fund Holders: 23
Market Capitalization as of August 9: $1.38 Billion
Dole (NYSE:DOLE) is one of the leading fresh fruits and vegetables companies that employs 38,500 people across 30 countries including North America, Europe, Latin America, and Asia. Dole (NYSE:DOLE) benefits from strong brand recognition, vertical integration, and a comprehensive distribution network that ensures the timely delivery of its products. The company operates a fleet of seven refrigerated container carriers and four pallet-friendly conventional refrigerated ships. Additionally, it owns and leases over 18,000 refrigerated containers and over 1,000 dry containers. Dole (NYSE:DOLE) operates 5 salad manufacturing plants, 12 cold storage facilities, 75 packing houses, and 162 distribution and manufacturing facilities. Dole (NYSE:DOLE) operates on more than 114,000 acres of land and produces over 300 products.
On Jan 10, Dole (NYSE:DOLE) announced to launch of a new shipping service to enhance transportation options for tropical fruits like mangoes and pineapples from Central America to the U.S. Starting December 31, the service utilizes two 40-foot container vessels in a 14-day rotation, with stops at ports in Colombia, Honduras, Guatemala, and El Salvador, delivering produce to Delaware’s Port of Wilmington. The new shipping service will strengthen Dole’s (NYSE:DOLE) supply chain for tropical fruits, ensure faster and more reliable deliveries to the U.S. This strategic move enhances Dole’s market leadership and positions the company for increased profitability and makes Dole (NYSE:DOLE) one of the best small-cap agriculture stocks to buy.
Dole’s (NYSE:DOLE) is considered one of the best small-cap agriculture stocks to buy due to its strong market presence in fresh produce. Unlike many companies that focus on packaged or processed foods, Dole (NYSE:DOLE) specializes in fresh fruits and produce. Trends, such as the increasing consumer demand for healthier food options should value Dole (NYSE:DOLE) at a premium, compared to other companies in the same sector. The company’s ongoing efforts to reduce its debt and position itself to achieve stronger profitability and growth in the future and will make the company achieve a higher stock price.
Dole’s (NYSE:DOLE) stock is trading at a forward PE of 12.02, a 29.63% discount to its sector. Industry analysts have a consensus on the stock’s Buy rating, setting an average share price target at $15.68, which represents an 8% upside potential from its current level. As of the first quarter, the stock is held by 23 hedge funds, and the stakes amount to to $165.47 million. Rubric Capital Management is the largest shareholder in the company and has a stake worth $61.33 million as of March 31.
While we acknowledge the potential of Dole (NYSE:DOLE) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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