Published on 23 Nov 2021 on Insider Monkey via Yahoo Finance
11 Best Food Stocks To Buy Now
In this article, we discuss the 11 best food stocks to buy now. You can skip our detailed analysis of the food stocks and the overall industry, and go directly to read the 5 Best Food Stocks To Buy Now.
According to a report published by The Food and Agriculture Organization (FAO), the rise in food prices reached a 10-year high this October, as the food price index averaged 133.2 points, up from 129.2 points in September. This hike in prices was seen as manufacturers faced higher costs of labor and transportation. The producer-price index gained 0.6% in October, and rose 8.6% in the past year, as reported by CNN. Moreover, the low food production due to the weather uncertainties, which is fueled by climate change, has also increased demand, resulting in higher prices. Due to this, leading food companies also increased their prices to cover the input costs, providing lucrative opportunities to investors.
According to investors and analysts, food stocks can offer good investment opportunities as they diversify the portfolio. Food processing stocks are especially gaining ground among investors as they are not much influenced by the changing seasons. In Q3, the U.S. Food Processing Industry returned 5.97%, up from 5.48% in the previous quarter. Some of the notable food stocks popular among hedge funds include PepsiCo, Inc. (NASDAQ:PEP), Mondelez International, Inc. (NASDAQ:MDLZ), General Mills, Inc. (NYSE:GIS), and The Kraft Heinz Company (NASDAQ:KHC).