It's time to work up an appetite for these top food stocks right now
These food stocks could see a big boost from this upcoming
holiday season.
You can live without an iPhone. You can live without a new
house. Even the latest Hollywood thriller isn’t something that’s absolutely
necessary. However, you can’t live without food – and that’s what makes food
stocks a key investing priority of long-term conservative types.
Food companies are the ultimate value stocks, given that
they’re consistently profitable. When times are good, food stocks consolidate
and create value with brand extensions. In times of inflation, these companies
keep margins high by making smaller packages for the same price. Indeed, even
in times of recession, investors clamor to hold food stocks, given the
essential products they provide to a clientele that’s still buying, even when
they’re cutting back everywhere else.
Not all food stocks are great investments. This year,
various protein players in the market like animal protein company Tyson Foods
(NYSE:TSN) and plant-based protein company Beyond Meat (NASDAQ:BYND), have been
losing investments.
That said, food stocks that operate in grain-based segments
of the market appear to be handling inflation the best. Despite the price of
wheat surging from around $8/bushel in 2022 to much higher levels flowing the
the Russian invasion of Ukraine, the willingness to pay of consumers among
grain-based foods appears to remain high.
Thus, whether we’re talking about cookings, chips, or bread,
consumers want it, and are willing to pay up. Indeed, I think 2023 could be set
up as a year for staples. Accordingly, here are three companies worth
considering right now.
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