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Forget Farmmi, Buy These 3 Packaged Food Stocks Instead -Breaking

by Mike Robinson

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© Reuters. Farmmi? Try these three packaged food stock instead

A surge in ready-to-cook and easy-to eat foods has boosted the industry’s competitiveness. And we don’t think Farmmi (FAMI) looks fundamentally fit enough to survive the competition and attract investors. It could, however, be worth betting upon. Flowers Foods (NYSE:), Sanderson(SAFM), and Herbalife Nutrition (NYSE :), who are better placed to take advantage of the sector’s opportunities. So, let’s pore over these names.Advancements in food processing techniques, improvement in delivery services, remote lifestyles due to the pandemic, and a growing inclination by consumers toward ready-to-cook, easy-to-eat food are driving the growth of the packaged food industry. With a 5.2% compound annual growth rate (CAGR), the global packaged food market will reach $3.41 trillion by 2030. The industry’s solid growth prospects have encouraged several new players to enter the market over the past year, making it highly competitive.

Although the agricultural e-commerce and technology enterprise Farmmi, Inc.’s (FAMI) revenues increased 31% year-over-year to $17.79 million in its last reported quarter, the stock has lost 74.1% in price over the past nine months and 70.7% over year-to-date. FAMI’s stock price has fluctuated over the last 90 days. FAMI is not the best option to cash in on industry tailwinds.

Instead, Flowers Foods, Inc. (FLO), Sanderson Farms , Inc. (NASDAQ:), and Herbalife Nutrition Ltd. (HLF), which have performed better than FAMI over the past months and possess strong fundamentals, could be ideal bets to capitalize on the industry’s solid growth prospects.

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