Industry Overview - Declining agriculture commodity prices and elevated input and labor costs have created a challenging environment for agriculture stocks in 2024, although demand for healthier, natural food products provides some support [1][4] - The USDA projects a net farm income of $140.7 billion for 2024, a decline of 4.1% from 2023, with net cash farm income expected to decrease 1.1% year over year to $158.8 billion [3] - Total crop receipts are projected to decline by 9.2% due to lower prices for corn and soybeans, which will negate gains from higher sales volumes [3] Demand and Innovation - The agriculture industry is benefiting from growing consumer demand for healthier food, with the global population expected to rise to 8.5 billion by 2030 and 9.7 billion by 2050, leading to a 50% increase in global food demand [5] - Companies are expanding product lines to offer new, nutritious ingredients and focusing on organic production techniques while reducing the use of chemicals and pesticides [6] - Advanced technologies such as precision agriculture, hydroponics, and vertical farming are gaining traction, enabling farmers to increase yield with reduced input costs [7][8] Company Performances - Calavo Growers, Inc. (CVGW) is experiencing growth from its avocado business and innovative guacamole products, with a Zacks Consensus Estimate for fiscal 2024 earnings suggesting substantial growth from a loss in the prior year [11][12] - Cadiz Inc. (CDZI) is positioned for long-term growth due to its stake in the Northern Pipeline project and a lease for a hydrogen production facility, with a Zacks Consensus Estimate indicating improvement in earnings [15][16] - Mission Produce, Inc. (AVO) is benefiting from its marketing and distribution strengths, with a Zacks Consensus Estimate for 2024 earnings indicating a surge from the previous year [17][19] - Cal-Maine Foods, Inc. (CALM), the largest producer of fresh shell eggs in the U.S., is gaining from high egg prices and expanding its product offerings, with a Zacks Consensus Estimate for fiscal 2025 earnings indicating significant growth [20][21]

Core Viewpoint - Mission Produce, Inc. (AVO) has demonstrated significant stock performance in 2024, with a 30.8% increase, contrasting with the agriculture operations industry's decline of 7.9% [1][2]. Stock Performance - AVO stock has outperformed both the Consumer Staples sector and the S&P 500, which rose by 4.3% and 27.7% respectively year to date [1]. - The stock price currently stands at $13.21, close to its 52-week high of $14.17, reflecting a 6.8% discount from that peak and a 46.3% premium over its 52-week low of $9.03 [5]. - AVO is trading above its 50 and 200-day moving averages, indicating strong upward momentum and price stability [6]. Company Strengths - Mission Produce's strengths include a robust global sourcing network and operational alignment, allowing it to meet customer demand while optimizing per-unit margins [8]. - The company has shown efficiency in managing supply chains and capitalizing on market opportunities, which enhances its competitive advantage [9]. - AVO's commitment to operational excellence and strategic growth initiatives supports its long-term growth potential [9][10]. Financial Performance - For the fourth quarter of fiscal 2024, Mission Produce expects revenues to exceed $320 million, up from $257.9 million in the prior-year quarter, and adjusted EBITDA to surpass $28 million, rising from $17.3 million [11]. - The Zacks Consensus Estimate indicates a 15% year-over-year growth in sales and a 136.8% increase in EPS for fiscal 2024 [12]. Valuation and Market Position - AVO's stock is currently trading at a forward P/E multiple of 45.55X, significantly higher than the industry average of 13.49X and the S&P 500's average of 22.66X, suggesting a premium valuation [18]. - This premium indicates high investor expectations for AVO's performance and growth potential, although it may lead to skepticism regarding stock purchases at these levels [19]. Investment Considerations - The company is well-positioned to leverage its global sourcing network and optimize margins, but faces operational challenges related to pricing environments and supply chain management [21]. - The investment case for AVO is mixed, with strong market positioning and rising avocado prices countered by financial inefficiencies and valuation concerns [22].

Core Viewpoint - Mission Produce, Inc. has announced a new policy to combat illegal deforestation linked to avocado farming in Michoacán, Mexico, demonstrating its commitment to environmental stewardship and industry leadership [1][2]. Company Policy - The company will prohibit sourcing avocados from 279 orchards identified by the Ministry of Environment for illegal deforestation [2]. - Mission Produce will conduct quarterly reviews to assess additional ranches associated with illegal deforestation and explore further actions to address the issue [2]. Company Overview - Mission Produce is a global leader in the avocado industry, also dealing in mangos and blueberries, and has been operational since 1983 [4]. - The company services retail, wholesale, and foodservice customers in over 27 countries and operates four packing facilities in key growing regions including California, Mexico, and Peru [4]. - Mission Produce has a global distribution network with strategically positioned centers across North America, China, Europe, and the UK, providing value-added services [4].

Core Viewpoint - The article discusses the strategy of selecting breakout stocks, emphasizing the importance of identifying support and resistance levels to make informed investment decisions [1][2][3]. Group 1: Breakout Stock Selection - Breakout stocks are identified by calculating their support (lower bound) and resistance (upper bound) levels, with a recommendation to sell if prices dip below the support level and hold if they surpass the resistance level [1][2]. - The demand for a stock is lowest at its support level, while traders are more inclined to buy at the resistance level, indicating potential breakout opportunities [3]. Group 2: Genuine Breakout Criteria - A genuine breakout occurs when the previous resistance level becomes the new support level, which can be confirmed through long-term price trend analysis [4][5]. - The strength of support and resistance levels is crucial for determining the validity of a breakout, and misidentification can lead to investment risks [5]. Group 3: Screening Criteria for Breakout Stocks - The screening criteria for identifying breakout stocks include a percentage price change over four weeks between 10% and 20%, a current price at least 90% of the 52-week high, a Zacks Rank of 1, a beta of 2 or less, and a current price of $20 or less [6][7]. - These criteria narrow down the stock universe to a select few, highlighting three top stocks: Mission Produce, BGC Group, and Nu Holdings, each with significant expected earnings growth rates of 136.8%, 20.7%, and 70.8% respectively for the current year [7][8][9].

Company Overview - Mission Produce, Inc. (AVO) is part of the Consumer Staples sector, which includes 184 companies and is currently ranked 13 in the Zacks Sector Rank [2] - The company belongs to the Agriculture - Operations industry, which consists of 14 stocks and is ranked 93 in the Zacks Industry Rank [6] Performance Metrics - Year-to-date, Mission Produce, Inc. has returned 35%, significantly outperforming the average gain of 3.4% for Consumer Staples stocks [4] - Over the past 90 days, the Zacks Consensus Estimate for AVO's full-year earnings has increased by 4.2%, indicating improved analyst sentiment [4] Comparative Analysis - Clorox (CLX), another Consumer Staples stock, has also outperformed the sector with a year-to-date increase of 14.2% and a Zacks Rank of 2 (Buy) [5] - The Agriculture - Operations industry has seen an average loss of 8.4% this year, highlighting Mission Produce's strong performance relative to its peers [6]

Core Viewpoint - Mission Produce, Inc. has shown strong stock performance, with a 7.7% increase over the past month and a 32.3% gain since the beginning of the year, outperforming both the Zacks Consumer Staples sector and the Zacks Agriculture - Operations industry [1][2]. Performance Metrics - The company has consistently exceeded earnings expectations, reporting an EPS of $0.23 against a consensus estimate of $-0.01 in its latest earnings report on September 9, 2024, and beating revenue estimates by 40.93% [2]. - For the current fiscal year, Mission Produce is projected to achieve earnings of $0.29 per share on revenues of $1.1 billion [2]. Valuation Metrics - Mission Produce currently trades at a valuation of 46 times the current fiscal year EPS estimates, which is significantly higher than the peer industry average of 19 times [5]. - On a trailing cash flow basis, the stock trades at 22.1 times compared to its peer group's average of 7.6 times, indicating a premium valuation [5]. Style Scores - The company has a Value Score of B, a Growth Score of A, and a Momentum Score of D, resulting in a combined VGM Score of A [4][5]. - The Zacks Rank for Mission Produce is 1 (Strong Buy), driven by rising earnings estimates, suggesting potential for further stock appreciation [6].

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for profitable short-term investing, highlighting that a solid price increase and strong fundamentals are crucial for maintaining momentum in stock prices [1][2]. Group 1: Stock Performance - Mission Produce, Inc. (AVO) has shown a solid price increase of 33.8% over the past 12 weeks, indicating strong investor interest [4]. - AVO has also experienced a price increase of 7.7% over the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, AVO is trading at 92.5% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - AVO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The article suggests using the "Recent Price Strength" screen to identify stocks like AVO that are on an uptrend supported by strong fundamentals [3]. - It also mentions that there are over 45 Zacks Premium Screens available for investors to find winning stock picks based on their personal investing styles [8].

Core Viewpoint - Mission Produce, Inc. anticipates strong financial performance for the fiscal fourth quarter of 2024, driven by its Marketing & Distribution segment and a favorable pricing environment [2][3]. Financial Performance Update - Total revenue for the fiscal fourth quarter is expected to exceed $320 million, up from $257.9 million in the same period last year, primarily due to strong performance in the Marketing & Distribution segment [3]. - Adjusted EBITDA is projected to exceed $28 million, compared to $17.3 million in the same period last year, reflecting improved per-unit margins in the Marketing & Distribution segment [3]. Company Overview - Mission Produce is a global leader in sourcing, producing, and distributing fresh Hass avocados, with additional offerings in mangos and blueberries, servicing customers in over 25 countries [6]. - The company operates four state-of-the-art packing facilities in key growing locations, including California, Mexico, and Peru, and has sourcing capabilities in various countries to ensure a year-round supply of premium fruit [6].

Group 1 - Mission Produce, Inc. (AVO) is currently ranked 11 in the Zacks Sector Rank for Consumer Staples, which includes 183 companies [1] - AVO has a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperforming the market in the next one to three months [1] - Over the past three months, the Zacks Consensus Estimate for AVO's full-year earnings has increased by 143.8%, reflecting improved analyst sentiment [2] Group 2 - Year-to-date, AVO has returned 19.3%, significantly outperforming the average gain of 6.9% for the Consumer Staples group [2] - Clorox (CLX), another outperforming stock in the Consumer Staples sector, has returned 11.6% year-to-date and has a Zacks Rank of 2 (Buy) [2] - AVO is part of the Agriculture - Operations industry, which is currently ranked 88 in the Zacks Industry Rank, while the industry has seen an average loss of 10.4% this year [3] Group 3 - Clorox belongs to the Soap and Cleaning Materials industry, which is ranked 10 and has gained 19.1% so far this year [3] - Both Mission Produce, Inc. and Clorox are stocks to watch for continued solid performance in the Consumer Staples sector [3]

Core Viewpoint - The article emphasizes the importance of identifying and maintaining trends in short-term investing, highlighting the utility of a "Recent Price Strength" screen to find stocks with strong fundamentals that can sustain upward momentum [1]. Group 1: Stock Performance - Mission Produce, Inc. (AVO) has shown a solid price increase of 26.4% over the past 12 weeks, indicating investor confidence in its potential upside [2]. - AVO has also maintained a price increase of 16.7% over the last four weeks, suggesting that the upward trend is still intact [2]. - Currently, AVO is trading at 80.1% of its 52-week high-low range, indicating a potential breakout opportunity [2]. Group 2: Fundamental Strength - AVO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [3]. - The stock's Average Broker Recommendation is also 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [3]. Group 3: Investment Strategy - The article suggests that AVO may not experience a trend reversal soon, making it a candidate for trend investors [4]. - In addition to AVO, there are other stocks that meet the criteria of the "Recent Price Strength" screen, which can help investors identify potential winning stocks [4]. - The Zacks Research Wizard is mentioned as a tool for backtesting stock-picking strategies, enhancing the likelihood of selecting profitable investments [4].