Mission(AVO) ZACKS·2024-12-18 17:10Industry 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 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]