You can skip our investment thesis for the food industry and click here to read 5 Best Food Stocks to Buy Now. For this article we decided use a broader definition of the food sector and also expanded our scope to the beverage sector. We first listed down all holdings of the First Trust Nasdaq Food & Beverage ETF (FTXG). We then gauged hedge fund sentiment for all holdings of the ETF and then selected 13 stocks with the highest number of hedge fund investors. The average analyst estimate calls for full-year earnings per share of $4.30, putting the price-to-earnings ratio at about 14.

And since food is considered an evergreen business segment, it’s an easy pick. However, you need to understand the food sector as a whole and its relative strengths and weaknesses. And if you can buy it right after a correction phase, it can be held for the long-term for its capital appreciation potential. Still, it offers decent cyclical growth (if you buy the dip) and a modestly high yield.

Empire Company (A) (EMP.A-T)

Stocks are arranged in the order of market capitalization at the time of writing this. Enbridge’s unwavering commitment to maintaining and increasing its dividend makes it a top passive-income stock. This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. Medline added that the quarterly results demonstrate the team’s ability to consistently execute, regardless of the economic environment. From breaking news about what is happening in the stock market today, to retirement planning for tomorrow, we look forward to joining you on your journey to financial independence.

  • At a growth rate of 9.7%, the size of the global food and beverage industry is predicted to increase from $5.8 trillion in 2021 to $6.4 trillion in 2022.
  • Best known for its chicken, Tyson Foods is in actuality a diversified provider of meat products.
  • However, the landscape for food stocks shifted notably this year, as many experienced a significant downturn.
  • With that in mind, let’s take a look at the best food stocks to invest in now according to a collection of some of the savviest investors on the planet.
  • Heavily affected by Covid-19, which minimized foodservice demand, Performance Food has been making a comeback.

Loblaw produces and sells a wide range of consumer products, such as pharmaceuticals, baby goods, clothing, automotive goods, cell phones, and more. As a supermarket chain, Loblaw (or “Loblaw Great Food”) has over 2,400 grocery stores across Canada, including discount banners No Frills® and Maxi®. When it comes to the holidays and investing, retail stocks may be what first comes to mind.

Which Canadian food companies offer the best dividends?

The profit includes proceeds from selling 56 fuel retail sites to a wholly-owned subsidiary of Shell Canada. Investors can add the best Canadian food stocks to their portfolios for capital protection and stability. On the flip side, this stability prevents most food stocks from appreciating rapidly during bull markets. However, I wouldn’t give up on Sprouts as a possible long-term buy-and-hold.

Typically, investors can rely upon food stocks, even during times of economic hardship. Fundamentally, everyone has to eat, facilitating a perpetual demand channel. Ultimately, the bottom line is that people are still stressed over this unprecedented crisis.

Molson Coors Beverage Company (NYSE:TAP)

Tyson profitability will suffer as industry trends normalize in the post-pandemic period, but the company remains a leader in the meat industry. Shares of this Canadian food stock are trading in very favourable value territory compared to its industry peers. Market trends in the Canadian grocery industry include increased online shopping, growth in private-label products, and a focus on sustainability. These trends present both opportunities and challenges for grocery companies and can impact the performance of their stocks.

Tyson Foods (NYSE: TSN)

This could lead consumers to buy groceries at value stores, cut restaurant spending, and choose non-branded items over premium brands, all of which can affect a food company’s revenues. Because Goodfood Market has its feet in both the food industry and the technology sector, investors should expect some volatility in the short term. Still, it can be a solid long-term pick, especially for growth stock investors looking for a low-cost opportunity.

Best Food Stocks In Canada

But he also cautioned investors to be mindful that not only are commodity-linked investments volatile, the market has already rallied in many industries. “The annual percent growth in total grain demand has doubled because places like China have become wealthier,” added Rozencwajg. “They demand more animal protein as they become wealthier, and it’s up to five to seven times as grain intensive.” He referenced the United States Department of Agriculture’s (USDA) projections of a 2022 wheat supply that would be 17% below last year’s supply. Earlier this week, the BBC reported that Edible Oils, an oil packager responsible for 75% of the UK retail market, had only a few weeks’ worth of sunflower oil left in its reserves.

These stocks represent ownership in the companies that run grocery stores, supermarkets, and other food retail businesses across the country. Investing in Canadian grocery stocks allows individuals to participate in the growth and profitability of the food industry in Canada. The food industry remains in the spotlight as investors flock to stocks that remain resilient in the current inflation storm. Essential food companies are in a situation to relay rising prices to consumers.

The Best Canadian Food Stocks in December 2023

Despite the challenges of the current economy, they were able to keep their prices stable, which drove revenue growth. While earnings per share numbers missed the mark, their revenue remained stable. The food industry was relatively stable during the pandemic, even as other industries have struggled. In Canada, food prices have experienced the fourth-highest level of inflation among product groupings tracked by Statistics Canada, rising by 9.8% year-over-year through August.