3 Vegan Stocks to Buy Now: May 2024

Core Viewpoint - The article discusses the potential profitability of vegan stocks, highlighting that sustainable practices may not necessarily lead to profitability sacrifices, especially as consumer preferences shift towards sustainability driven by Generation Z [1][2]. Group 1: Environmental Impact of Vegan Diets - Research indicates that vegan diets result in 75% less climate-heating emissions, 66% less destruction of wildlife, 54% less water use, and reduced water pollution compared to diets with over 100g of meat daily [1]. Group 2: Consumer Trends - Generation Z is increasingly embracing sustainability, influencing broader consumer behavior towards green-friendly initiatives, which could positively impact the sustainability ecosystem [1][2]. Group 3: Company Analysis - Kroger (KR) - Kroger is a major player in the grocery industry, offering an in-store brand called Simple Truth that focuses on organic and natural products, including plant-based meat [3]. - Kroger's projected sales for fiscal 2026 are $151.36 billion, showing modest growth compared to its trailing-12-month revenue of$150.04 billion [4]. - The company offers a forward dividend yield of 2.16%, making it a stable investment option [4]. Group 4: Company Analysis - Mission Produce (AVO) - Mission Produce specializes in the sourcing, farming, packaging, marketing, and distribution of avocados, mangoes, and blueberries, serving various markets [6]. - The company reported a positive earnings surprise of 250% for the three months ended January 31, 2024, with earnings per share of 9 cents against an anticipated loss [6][7]. - For fiscal 2024, analysts project earnings per share of 29 cents on sales of $969.17 million, up from 19 cents EPS and$953.9 million in sales the previous year [7]. Group 5: Company Analysis - Calavo Growers (CVGW) - Calavo Growers markets and distributes avocados and other perishable foods, positioning itself well amid trends towards healthier food options [8]. - Analysts rate Calavo shares as a moderate buy with an average price target of $35.50, indicating nearly 33$10.21 million on revenue of $966.79 million during the trailing-12-month period, projections for fiscal 2025 suggest a potential earnings per share of$1.55, indicating a significant improvement [9].