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Yahoo
09-07-2025
- Business
- Yahoo
Top Ag Tech & Food Innovation Stocks to Strengthen Your Portfolio
An updated edition of the May 22, 2025 article. The agriculture industry is experiencing a major transformation, driven by advanced technologies and groundbreaking innovations. As the global population continues to grow and climate change puts increasing strain on food systems, the need for sustainable, efficient and resilient farming practices has become more urgent than ever. In this evolving landscape, agricultural technology (AgTech) and food innovation are playing a pivotal role. These emerging solutions are revolutionizing how food is produced, helping to boost productivity, reduce environmental impact, and build a more secure and sustainable future for global is revolutionizing the way food is produced, processed and distributed, thanks to advancements in artificial intelligence (AI), biotechnology, and automation. These innovations are making agriculture smarter, more sustainable and increasingly efficient. Technologies such as precision farming, lab-grown meat, and plant-based alternatives are at the forefront of reshaping the food industry. Farmers and producers are turning to AI-driven analytics, robotics and automation tools to boost crop yields, reduce resource waste and streamline operations. Smart farming techniques enable precise planting, optimized irrigation and efficient harvesting, resulting in higher productivity with lower environmental impact. Companies like Hydrofarm Holdings Group, Inc. HYFM are embracing AgTech to deliver advanced growing solutions, helping cultivators maximize output while reducing their ecological farming, the global protein market is undergoing a profound transformation. Plant-based proteins, cultivated (lab-grown) meat and fermentation-derived protein products are emerging as healthier, more sustainable alternatives to conventional animal protein. These innovative protein sources are gaining momentum among health-conscious consumers and those concerned about environmental impact. Leading this evolution are companies like Ingredion Incorporated INGR, which is actively investing in plant-based ingredients and sustainable protein solutions to meet rising global demand. AgTech is playing a vital role in transforming the entire food supply chain. Emerging technologies like blockchain and the Internet of Things (IoT) are enhancing food traceability, boosting safety standards, and minimizing waste by optimizing logistics and distribution processes. At the same time, automation in food processing and packaging is enabling companies to deliver fresher, higher-quality products more efficiently, while significantly reducing operational the food industry continues to evolve, businesses that adopt these advanced technologies are gaining a competitive edge and positioning themselves for sustainable, long-term growth. For investors aiming to tap into the accelerating shift toward sustainable food systems, several top-performing stocks from our Ag Tech & Food Innovation Screen offer compelling opportunities. Industry leaders such as Beyond Meat, Inc. BYND, Hormel Foods Corporation HRL and Tyson Foods, Inc. TSN are driving this transformation by harnessing the power of agricultural technology and food innovation to fuel growth and enhance long-term 30 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity. Beyond Meat is doubling down on agricultural technology and food innovation to redefine the future of protein. By combining cutting-edge food science with culinary expertise, the company continues to develop plant-based meats that closely replicate the taste, texture and nutritional value of traditional animal products. This innovation-driven strategy aligns with evolving consumer preferences while addressing critical global challenges such as climate change, resource conservation and public Meat remains focused on clean-label product development and process efficiency. Its newest launch, Beyond Chicken Pieces, is a prime example. Crafted with avocado oil and offering 21 grams of protein per serving, the product reflects the company's commitment to simple, wholesome ingredients without compromising taste or performance. In the AgTech space, Beyond Meat is deepening its partnerships with farmers to promote sustainable and regenerative agricultural practices. These efforts are key to building a transparent, carbon-conscious supply chain that supports long-term environmental and economic resilience. The company's Devault, PA, manufacturing facility is another major step forward, representing its move toward production insourcing. Beyond Meat is expanding its global footprint to meet rising demand for plant-based protein across international markets. This Zacks Rank #3 (Hold) company remains at the forefront of agricultural technology and food innovation. Its ongoing investments in sustainable product development, supply chain transformation and consumer health initiatives underscore its mission to drive the future of food through science, sustainability and bold innovation. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks hereHormel Foods is leveraging advanced digital technologies and AgTech solutions to streamline operations, boost efficiency and elevate food production standards across its value chain. By integrating real-time data analytics and automation, the company is optimizing everything from raw material sourcing to quality assurance and food safety. This digital-first strategy enhances transparency and traceability, empowering consumers with deeper insights into how and where their food is made. A key example is Hormel Foods' $1.7 million investment in regenerative agriculture across 50,000 acres in Minnesota. This initiative supports eco-friendly practices such as minimal tillage, crop rotation and cover cropping — efforts that promote soil health, conserve water, and sequester carbon, aligning closely with its environmental sustainability response to the rising demand for sustainable and plant-based proteins, Hormel Foods is expanding its innovation pipeline with a strong focus on alternative protein development. A significant milestone is its strategic partnership with The Better Meat Co., which is pioneering mycoprotein-based meat alternatives. This collaboration is centered on creating meat substitutes that replicate the taste and texture of traditional protein while reducing the environmental impact. By diversifying its protein portfolio with clean-label, plant-forward solutions, Hormel Foods is reinforcing its position as a progressive, health-conscious food Foods is also accelerating AgTech-driven efficiencies as part of its broader Transform and Modernize (T&M) initiative. The recently launched, strategically located Memphis distribution center is designed to improve inventory flow and reduce logistics costs. Simultaneously, the company is deploying smart automation and real-time analytics across its production network to boost operational performance, manage input costs and minimize disruptions. These combined efforts underscore Hormel's strategic focus on innovation, sustainability, and digital transformation — critical growth pillars that keep this Zacks Rank #3 stock well-positioned in today's rapidly evolving food Foods is actively transforming the food industry through strategic investments in agricultural technology and food innovation. With a strong commitment to sustainability and evolving consumer needs, the company is focused on initiatives that support sustainable protein production, digital transformation, and next-generation food solutions. These efforts position Tyson to remain competitive in a dynamic market while tackling global challenges such as climate change, food security and responsible resource use.A cornerstone of Tyson's innovation strategy is its investment in alternative protein development. The company has partnered with industry pioneers like Future Meat Technologies and Memphis Meats to expand into the cultured and lab-grown meat segment, supporting its goal to reduce the environmental footprint of conventional meat production. In addition, its Raised & Rooted plant-based line offers popular products such as meatless nuggets and burgers, designed to meet growing consumer demand for sustainable, high-protein, plant-forward foods. This dual-track approach—covering both plant-based and cellular agriculture — strengthens Tyson's ability to serve a broader, more health-conscious protein diversification, Tyson Foods is enhancing operational efficiency through digital innovation and automation. The company is overhauling its logistics infrastructure by shifting to fully automated cold storage facilities, expected to yield $200 million in annual savings by 2030 while lowering emissions and streamlining supply chain operations. At the plant level, Tyson has deployed advanced performance-tracking tools, resulting in significant improvements in line and labor efficiency. These integrated tech-driven strategies reflect this Zacks Rank #3 company's commitment to future-ready food production and reinforce its position as a leader in sustainable, innovation-led protein solutions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hormel Foods Corporation (HRL) : Free Stock Analysis Report Tyson Foods, Inc. (TSN) : Free Stock Analysis Report Ingredion Incorporated (INGR) : Free Stock Analysis Report Beyond Meat, Inc. (BYND) : Free Stock Analysis Report Hydrofarm Holdings Group, Inc. (HYFM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
09-04-2025
- Business
- Yahoo
Is Hydrofarm Holdings Group, Inc. (HYFM) the Worst Vertical Farming and Hydroponic Stock to Buy?
We recently published a list of . In this article, we are going to take a look at where Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) stands against other worst vertical farming and hydroponic stocks to buy. Vertical farming and hydroponics have proven to be revolutionary solutions in the agriculture sector, addressing food security, sustainability, and urbanization challenges. The global hydroponics market is expected to grow to $25.1 billion by 2027 from $12.1 billion in 2022, as per MarketsandMarkets. On the other hand, the vertical farming industry is forecasted to grow to $50.1 billion by 2032 from $6.92 billion in 2024, according to Fortune Business Insights. Hence, the sector has strong growth potential. However, despite such positive forecasts, not all companies in the sector are poised for success. Several players are facing a downfall due to rising operational costs, scalability-related issues, and financial instability. These factors make some of the stocks in the sector riskier than others. One of the main factors affecting the industry is the high cost of setting up and maintaining vertical farms. High capital investment is required to support innovations like LED lighting, AI-driven automation, and climate-controlled systems. Although innovations like the CoolGrow VF LED light have enhanced energy efficiency by up to 38%, overall operational costs remain high. Moreover, farm input costs have climbed 44% since 2019, according to AHDB, with fertilizer, electricity, and machinery costs surging between 38% and 50%, decreasing profit margins. Such rising costs put pressure on companies to maintain profitability, especially where the industry struggles with tight margins. Similarly, dependence on artificial lighting and climate control results in high energy consumption, increasing costs, and reducing profitability. Although technological advancements are being made to decrease costs, energy-intensive operations hit profit margins. Additionally, supply chain disruptions, especially after the COVID-19 pandemic, have added further complications. Labor-related shortages and transportation issues have put pressure on companies, making it difficult to scale operations efficiently. Many vertical farms rely on highly specialized components, and delays in sourcing critical equipment halt expansion efforts. Furthermore, the hydroponics sector has also been facing regulatory uncertainty. Although cannabis legalization in several markets initially increased demand for hydroponic systems, inconsistent regulations and oversupply in the cannabis market have stunted growth. Many companies in the sector that heavily rely on cannabis cultivation have faced difficulties in pivoting to other revenue streams. On the other hand, although demand for vertical farming produce is increasing, it faces challenges due to higher price points compared to traditional agriculture. While sustainability is an attractive selling point, budget-sensitive consumers tend to go for cheaper options, resulting in a decrease in the market reach of vertically farmed produce. Investor sentiment is shifting, with increasing doubts regarding capital-intensive agritech ventures. According to McKinsey & Company, annual investments worldwide in food and agribusiness have surpassed the $100 billion mark. However, hydroponic and vertical farming companies are still finding it difficult to secure funding. This has resulted in increased short interest in several underperforming stocks, with hedge funds betting against companies that do not demonstrate sustainable long-term business models. Companies that previously ensured high-margin growth have faced a decrease in revenue, adding to concerns regarding long-term viability. Ultimately, the structural challenges of the industry, as well as economic pressures, have led to significant stock underperformance for multiple vertical farming and hydroponic companies. To come up with our list of the 7 Worst Vertical Farming and Hydroponic Stocks to Buy, we started by making use of Finviz screener to identify stocks from the agricultural inputs and farm products industries. We also looked into our previous articles on the sector to make sure relevant companies with substantial market capitalization are included. Next, we looked into hedge fund interest in these companies, as we believe that stocks with significant institutional backing point toward financial stability. However, we focused on short interest, measured by the short percentage of float, reflecting investor skepticism and potential risks. A higher short interest points toward a company's frail financial position, operational inefficiencies, or larger industry challenges. The companies were then ranked in ascending order based on their short percentage of float, with the most shorted stocks situated at the top of our list. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A large field of sunflowers under bright agricultural lighting. Short % of Float: 2.13% Number of Hedge Fund Holders: 5 Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) is one of the top suppliers of controlled environmental agriculture (CEA) equipment. It provides solutions for hydroponics and vertical farming, including agricultural lighting, climate control systems, and nutrients. However, due to industry-wide oversupply and lower demand, sales have been impacted. The company is now focusing on expanding its proprietary product mix and diversifying its revenue stream beyond the cannabis sector to try to overcome such challenges. Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) reported net sales of $37.3 million for Q4 2024, a 20.9% decrease year-over-year. The company's margins also squeezed as adjusted gross profit dropped to $3.6 million, accounting for only 9.6% of net sales compared to 24.3% in the previous year. Management associated the negative performance with a lower mix of higher-margin proprietary products and broader industry-related issues. Looking forward, the company forecasts a double-digit decrease in sales in early 2025, with gradual stability expected later in the year. In order to reestablish profitability, Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) has put in force aggressive cost-cutting measures. These include optimization of its distribution network and reduction of SG&A expenses. However, the potential increase in tariffs on imports from Canada and China poses an additional risk to margins. The management has also shown interest in strategic alternatives, which include possible asset sales or mergers, highlighting continued financial and operational pressures. Regardless of efforts to stabilize operations, the company continues to battle decreasing sales and declining profitability. Although its e-commerce business has shown growth, industry conditions are uncertain, making a near-term turnaround uncertain. The company's shares are down by nearly 75% year-to-date, reflecting its financial position and putting it among the worst agriculture stocks. Overall, HYFM ranks 6th on our list of worst vertical farming and hydroponic stocks to buy. While we acknowledge the potential of HYFM, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HYFM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
20-02-2025
- Business
- Yahoo
Hydrofarm Holdings Group, Inc. to Announce Fourth Quarter and Full Year 2024 Results on March 5, 2025
SHOEMAKERSVILLE, Pa., Feb. 20, 2025 (GLOBE NEWSWIRE) -- Hydrofarm Holdings Group, Inc. ('Hydrofarm' or the 'Company') (Nasdaq: HYFM), a leading independent manufacturer and distributor of branded hydroponics equipment and supplies for controlled environment agriculture ('CEA'), today announced that it will host a conference call to review fourth quarter and full year 2024 results on Wednesday, March 5, 2025 at 8:30 AM ET. A press release containing fourth quarter and full year 2024 results will be issued before market open that same day. The conference call can be accessed live over the phone by dialing 1-800-343-5172 and entering the conference ID: HYFMQ4. The conference call will also be webcast live and archived on the corporate website at under the 'Investors' section. About Hydrofarm Holdings Group, is a leading independent manufacturer and distributor of branded hydroponics equipment and supplies for controlled environment agriculture, including grow lights, climate control solutions, growing media and nutrients, as well as a broad portfolio of innovative and proprietary branded products. For over 40 years, Hydrofarm has helped growers make growing easier and more productive. The Company's mission is to empower growers, farmers and cultivators with products that enable greater quality, efficiency, consistency and speed in their grow projects. Contacts:Investor ContactAnna Kate Heller / ICRir@ in to access your portfolio
