The agriculture sector holds a promising long-term outlook, driven by technological advancements and economies of scale that are boosting global yield growth. A growing emphasis on sustainable use of land, water, and energy resources further strengthens this momentum.

In this context, leading agriculture stocks that are feeding the future, such as Mission Produce, Inc. (AVO - Get Rating), Dole plc (DOLE - Get Rating), and ICL Group Ltd (ICL - Get Rating), are poised for substantial growth.

The agricultural industry is expanding. With a rising population and rapid urbanization, the demand for diverse, high-quality food is surging. Additionally, increasing meat consumption is driving the need for more feed crops, further accelerating growth across the agriculture sector. Notably, the global agriculture market is projected to reach $19.29 trillion by 2028, growing at a 7.7% CAGR.

The rising demand for organic, locally sourced, and eco-friendly foods is transforming agricultural practices and supply chains. A strong focus on soil health, water conservation, biodiversity, and minimizing chemical use supports ecological balance and ensures sustainable productivity. With the sustainable agriculture sector expected to grow at a robust 6.1% CAGR from 2024 to 2029, the future looks promising.

Furthermore, government incentives, consumer education, and technological integration foster widespread adoption and continued sector growth. Given these positive trends, let’s examine the fundamentals of the three featured Agriculture stocks, beginning with the third choice.

Stock #3: Mission Produce, Inc. (AVO - Get Rating)

AVO engages in the sourcing, farming, packaging, marketing, and distribution of avocados, mangoes, and blueberries to food retailers, distributors, and food service customers internationally.

In terms of the trailing-12-month asset turnover ratio, AVO’s 1.31x is 51.1% higher than the 0.87x industry average.

In the fiscal fourth quarter ended October 31, 2024, AVO’s net sales increased 37.4% year-over-year to $354.50 million. Similarly, its operating income reached $28.60 million, up 297.2% compared to the prior-year quarter. Moreover, the company’s attributable net income and net income per share rose 332.5% and 300% year-over-year to $17.30 million and $0.24 per share, respectively.

Analysts expect AVO’s revenue for the quarter ending January 31, 2025, to increase 10.4% year-over-year to $285.60 million. AVO’s stock has gained 35.3% over the past six months to close the last trading session at $13.20.

AVO’s positive outlook is reflected in its POWR Ratings. It has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR ratings assess stocks by 118 different factors, each with its own weighting.

It has an A grade for Growth and a B for Sentiment. It is ranked #3 out of 24 stocks in the Agriculture industry. To access other ratings of AVO for Value, Momentum, Stability, and Quality, click here.

Stock #2: Dole plc (DOLE - Get Rating)

Headquartered in Dublin, Ireland, DOLE engages in sourcing, processing, marketing, and distributing fresh fruit and vegetables worldwide. The company operates through three segments: Fresh Fruit; Diversified Fresh Produce – EMEA; and Diversified Fresh Produce – Americas and ROW. It offers bananas, pineapples, grapes, berries, avocados, organic produce, cherries, apples, potatoes, and onions.

In terms of the trailing-12-month Return on Common Equity, DOLE’s 11.35% is 7% higher than the 10.62% industry average. Similarly, its 1.85x trailing-12-month asset turnover ratio is 113.6% higher than the 0.87x industry average. Its 4.14% trailing-12-month Return on Total Assets is 7.9% higher than the 3.84% industry average.

DOLE’s net revenue increased 2.2% year-over-year, amounting to $6.31 billion for the nine months ended September 30, 2024. Similarly, its adjusted net income was $105.62 million, up 2.3% year-over-year, while its adjusted EPS rose marginally from the year-ago value of $1.11. Also, the company’s adjusted EBITDA increased 3% from the prior year’s period to $317.59 million.

For the quarter ending March 31, 2025, DOLE’s EPS is expected to increase 4.9% year-over-year to $0.45. Its revenue for the quarter ending June 30, 2025, is expected to rise marginally year-over-year to $2.14 billion. It surpassed the consensus EPS estimates in three of the trailing four quarters. The stock has gained 9.7% over the past nine months to close the last trading session at $12.83.

DOLE’s bright outlook is reflected in its POWR Ratings. It has an overall rating of B, translating to a Buy in our proprietary rating system.

It has a B grade for Value and Stability. It is ranked #2 in the same industry. To see DOLE’s Growth, Momentum, Sentiment, and Quality ratings, click here.

Stock #1: ICL Group Ltd (ICL - Get Rating)

Headquartered in Tel Aviv, Israel, ICL and its subsidiaries operate as a specialty minerals and chemicals company worldwide. It operates in four segments: Industrial Products, Potash, Phosphate Solutions, and Growing Solutions.

On December 13, 2024, ICL introduced VeriQuel R100, a new phosphorus-based flame retardant for rigid polyurethane insulation. It improves sustainability and fire safety, meets stricter environmental rules, and works seamlessly with current manufacturing methods.

In terms of the trailing-12-month EBIT margin, ICL’s 11.01% is 2.7% higher than the 10.72% industry average. Its 5.83% trailing-12-month net income margin is 18.1% higher than the 4.94% industry average. Also, its 3.50% trailing-12-month Return on Total Assets is 47.5% higher than the 2.37% industry average.

During the third quarter ended September 30, 2024, ICL’s sales came in at $1.75 billion, and its adjusted operating income stood at $243 million, up 7% year-over-year. The company’s adjusted net income attributable to shareholders and adjusted earnings per share came in at $113 million and $0.11, respectively. Also, its adjusted EBITDA rose 10.7% year-over-year to $383 million.

Street expects ICL’s EPS for the quarter ending March 31, 2025, to increase 19.6% year-over-year to $0.11. Its revenue for fiscal 2025 is expected to grow 5.3% year-over-year to $7.31 billion. ICL surpassed the Street EPS estimates in each of the trailing four quarters. Over the past three months, the stock has gained 25.7% to close the last trading session at $5.23.

ICL’s POWR Ratings reflect strong prospects. It has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.

ICL is ranked first in the Agriculture industry. It has a B grade for Value, Stability, Sentiment, and Quality. In addition to the POWR Ratings grades I’ve just highlighted, you can see ICL’s ratings for Growth and Momentum, here.

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ICL shares were trading at $5.24 per share on Tuesday afternoon, up $0.01 (+0.19%). Year-to-date, ICL has gained 6.07%, versus a 0.84% rise in the benchmark S&P 500 index during the same period.

About the Author: Abhishek Bhuyan

Abhishek embarked on his professional journey as a financial journalist due to his keen interest in discerning the fundamental factors that influence the future performance of financial instruments. More...

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