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There have been many lifestyle changes in the post-covid world. An important part is a focus on physical and mental health. Eating the right food is an important part of physical health, and with health issues like obesity and diabetes, among others, there is an increasing demand for organic food. From an investment perspective, it’s a good idea to remain invested in some of the best organic food stocks for the long term.
Returning to demand, the organic food market in the United States will reach $76. 4 billion in 2022. The market is expected to grow at a CAGR of 8. 3% to reach $123. 3 billion by 2028. I expect a healthy expansion to continue even beyond this period. . . The recipients will be organic farming companies or organic retailers.
This column discusses three of the most productive biostocks to buy as the world shifts toward white, healthy foods.
In the third quarter of 2023, Sprouts reported a 7. 6% year-over-year profit expansion to $1. 7 billion. During the same period, same-store sales expansion was physically powerful at 3. 9%. A vital point to note is that since the start of the year, the Company has opened 24 new stores. Aggressive store openings coupled with comparable store sales expansion will help drive sustained expansion.
It’s also worth noting that the company has an annualized operating investment potential of $550 million. This provides the ability to invest in new retail stores and make percentage buybacks. As the organic market grows, Sprouts Farmers can create value.
Mission Produce (NASDAQ:AVO) is a benchmark for quality on the list of the most productive organic food reserves. When it comes to health benefits, avocado is unrivaled. As a vertically constituted law firm, Mission Produce emerges as a long-term price firm. creator.
Overall, the company has four packaging facilities in key expansion spaces globally, in addition to California, Mexico and Peru. The company also has sourcing functions in several countries ensuring a year-round source of high-quality fruit. The company sells new mangoes to consumers in 25 countries.
Natural Grocers via Vitamin Cottage (NYSE:NGVC) stock has seen a surge with a 45% rally over the past month. This comes as a surprise, as NGVC stock is still trading at an excellent Forward P/E ratio of 16. 6. Additionally, the stock offers a dividend yield of 2. 36%.
Natural Grocers is an organic grocery and nutritional supplement store in the United States. Recently, the company reported its fourth-quarter 2023 results, and sales increased by 7. 6% to $295. 1 million. It should be noted that the company has now recorded positive results in the same stores. Sales expansion for the twentieth consecutive year.
Natural Grocers has already forecast positive same-store sales expansion of 2% to 4% for next year. With the positive momentum sustained, I expect NGVC inventory to continue to grow.
Another growth catalyst is the expansion of Natural Grocers brand products. The Company has introduced 101 new products in its brand portfolio in the last two years. As of Q4 2023, these products represented 7.8% of total sales. As the in-house brand portfolio expands and sales increase, it’s likely to impact EBITDA margin positively.
Faisal Humayun is a senior research analyst with 12 years of experience in credit research, equity research, and money modeling. Faisal has authored more than 1500 stock-specific articles, focusing on the technology, energy, and commodities sectors.
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