8 Best Vertical Farming and Hydroponic Stocks to Invest In

4) Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM)

Number of Hedge Fund Holders: 5

Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) is a leading supplier of controlled environment agriculture (CEA) equipment and solutions. These include hydroponic systems, vertical farming equipment, and other tools used for growing plants without soil. Wall Street analysts believe that Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM)’s focus on growing its proprietary brand sales should continue to support its long-term growth outlook.

The company continues to invest in innovation and the development of new proprietary products in a bid to address the growing demand for hydroponic and vertical farming solutions. This consists of creating advanced grow lights, hydroponic systems, and climate control solutions. By rolling out unique and high-quality products, Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) can differentiate its proprietary brands in the marketplace.

Furthermore, Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) has been focusing on strategic acquisitions to expand its portfolio of proprietary brands. These acquisitions help in enhancing product offerings by adding complementary brands that are renowned in specific areas of the CEA industry. For example, Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) acquired brands like Sunlight Supply, which is renowned for its high-quality hydroponic products, strengthening its proprietary brand portfolio. These strategies continue to pay off, with its proprietary brands sales representing 56% of total net sales as compared to 54% in the prior-year period. The company remains focused on strategically investing in its key proprietary brands as it looks to meet growers’ evolving needs.