Plant-Based Revolution: 3 Stocks to Buy Now

Stocks to buy

For those thinking about the future of sustainability, stocks for plant-based revolution should be high on your radar. And if you don’t give a rat’s you-know-what about sustainability? Honestly, it doesn’t matter. The green future will happen whether you like it or not.

First, social mores have changed dramatically, particularly with millennials and members of Generation Z. According to a report by The Food Institute, a shockingly large 81% of college students will choose a plant-based food offering when it’s the default option. Therefore, you ought to consider high potential plant-based stocks, irrespective of your personal perspective or bias.

Second, political forces will likely shape infrastructures to accommodate green thinking. Therefore, you can’t afford to ignore the top plant-based stocks, in much the same way that politicians can’t ignore young voters. Every vote counts, just like every dollar counts for capitalist enterprises. So yeah, make fun of the tree-huggers all you want. Just make sure to target these plant-based stocks to watch.

Kellogg (K)

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While an entity like Beyond Meat (NASDAQ:BYND) may seem a clear-cut idea for stocks for plant-based revolution, here’s the harsh reality: Beyond Meat sucks. To be fair, its products are just fine. However, the company suffers from myriad troubles. Instead, for conservative investors – or investors that don’t want to lose money – you’re better off with Kellogg (NYSE:K).

Obviously, Kellogg being a blue-chip icon in the food industry means that it’s a boring enterprise. Still, it’s a strong offering for top plant-based stocks because of its massive resources. Under its corporate umbrella, the company features the plant-based brands Kashi, MorningStar Farms and Incogmeato. In particular, the latter brand should compete quite well with Beyond Meat.

For full disclosure, K stock has been a slow mover among plant-based stocks to watch., losing over 8% of equity value in the trailing year. Still, it’s been printing a series of higher lows since March of this year. Also, despite mixed analyst assessments, experts still see a path of nearly 9% upside for Kellogg. Combined with its dividend yield of 3.48%, the company offers a solid starting point.

Kroger (KR)

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One of my favorite ideas for stocks for plant-based revolution has to be grocery giant Kroger (NYSE:KR). True, like Kellogg above, Kroger does not represent a pure-play idea in this segment. However, it remains a relevant player thanks to its Simple Truth in-store brand, which continues to expand its plant-based collection.

Given the challenges of the consumer economy, it’s reasonable to expect shoppers to gravitate toward cheaper alternatives of ethically sourced protein. Not only that, we could see more people shopping at grocery stores, trading down their food purchases from restaurants as households start to pinch pennies. Therefore, it’s possible that Kroger’s addressable market may expand.

Even better, I appreciate that KR ranks among the high potential plant-based stocks priced at a discount. Currently, shares trade at a forward multiple of 10.66. As a discount to projected earnings, Kroger ranks better than 88.89% of the competition. Such a bargain rate might be too good to pass up, considering that KR carries a moderate buy consensus view. Therefore, it’s one of the plant-based stocks to watch.

Mission Produce (AVO)

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A true, pure-play idea among plant-based sector stocks, Mission Produce (NASDAQ:AVO) is a global leader in the worldwide avocado business. Since 1983, Mission has invested in people, state-of-the-art technology and avocado-specific infrastructure, per its website. Further, it serves customers,  growers and partners in over 25 countries.

Technically speaking, it’s a risky idea. Since the Jan. opener, AVO stock only gained a hair over parity. And in the trailing one-year period, shares slipped nearly 20%. At the same time, for patient investors of stocks for plant-based revolution, Mission Produce may end up delivering the goods.

According to Harvard T.H. Chan School of Public Health, the botanical fruit offers myriad health benefits. “Avocados contain several nutrients including carotenoids, monounsaturated fats, potassium, and fiber that have been associated with a reduced risk of chronic diseases, especially when included as part of a balanced nutritious diet,” the academic institution explains.

Notably, Wall Street analysts peg AVO a consensus moderate buy. More importantly, their average price target stands at $15.33, implying nearly 31% upside potential. With such enthusiasm, AVO easily ranks among high potential plant-based stocks.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.