In this article, we will take a look at the 10 best vegan stocks to buy now. You can skip our comprehensive analysis of the global vegan market and industry trends and go directly to the 5 Best Vegan Stocks to Buy Now.
The vegan industry has seen tremendous growth in recent years, both in revenue and consumer numbers. Aside from the innovation of meatless animal protein alternatives, rising consumer understanding of the health hazards of consuming too much animal products and the ethical and environmental consequences of animal agriculture is fueling the demand for vegan foods worldwide. In a research published in January 2021, the global vegan food market is projected to rise at a compound annual growth rate (CAGR) of 9.2%, from $14.44 billion in 2020 to $15.77 billion in 2021.
The Rise of Plant-Based Food
One of the widely popular vegan companies in the global market is California-based vegan food startup Impossible Foods. Founded in 2011, Impossible Foods creates plant-based meat, dairy, and fish alternatives. Throughout 13 rounds of funding, Impossible Foods has raised a total of $1.4 billion. Their most recent round of funding was a Series G round led by Philippe Laffont's Coatue Management on August 13, 2020. According to the data tracker PrimeUnicorn Index, the latest round values Impossible Food at a $4 billion valuation. In April 2019, Impossible Foods collaborated with Burger King to introduce the Impossible Whopper.
Plant-based meat alternative producer Beyond Meat, Inc. (NASDAQ: BYND) started selling "Chicken-Free Strips" in 2012, and in 2019, the California-based company went public. Beyond Meat's IPO was one of the biggest-popping IPOs for a U.S. company. It was valued at $1.5 billion when it went public, three months later, it was worth more than $13 billion. The stock has gained 51% over the past twelve months.
Even the world's biggest meat producers, including Tyson Foods, Inc. (NYSE: TSN) and Hormel Foods Corporation (NYSE: HRL), actively invest in acquiring and developing new goods and brands that will cater to the growing demand for plant-based products among consumers. Major food companies know that plant-based food popularity will only grow in the coming years as the vegan trend becomes a norm worldwide.
In 2017, dairy giant Danone S.A. (OTC: DANOY) purchased The WhiteWave Foods Co., including the company's soy brand Alpro for $12.5 billion. Danone S.A.'s portfolio was diversified by the acquisition of WhiteWave, which includes Silk's nut and soy milk line and Vega's plant-based protein shakes. Shares of Danone S.A. (OTC: DANOY) jumped 5.8% over the past twelve months.
In 2018, Unilever PLC (NYSE: UL) acquired Dutch plant-based food producer The Vegetarian Butcher. Over the next five to seven years, Unilever intends to make $1.2 billion in revenue from its plant-based meat and dairy alternatives. Shares of UL increased 9% over the past twelve months.
Should You Invest in Vegan Stocks?
Despite the growing availability of vegan food products, the industry is still in its early growth stage, with plenty of space for development. According to UBS, the demand for "plant-based meat" is expected to grow rapidly. In a note last week, the investment bank said that sales of meatless protein products would increase at a 30% compound annual growth rate through 2025, reaching $51 billion. Investing in vegan stocks allows investors to diversify their portfolio while still participating in a rapidly expanding industry.
Just like the food industry, the hedge fund industry is also facing some new trends that are shattering the age-old conventions and causing even the most famous investors struggle to sustain their profits. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn't keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey's research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26, 2021, our monthly newsletter's stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017, and they lost 13% through November 16. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context in mind, here is our list of the 10 best vegan stocks to buy now.
Best Vegan Stocks to Buy Now
10. Tattooed Chef, Inc. (NASDAQ: TTCF)
Number of Hedge Fund Holders: 11
We start our list of the 10 best vegan stocks to buy now with plant-based processor Tattooed Chef, Inc. (NASDAQ: TTCF). Headquartered in Paramount, California, Tattooed Chef, Inc. offers ready-to-cook vegan and vegetarian bowls such as Plant-based Burrito bowls and Veggie Hemp bowls. Among the plant-based food products that the company sells are smoothie bowls and cauliflower pizza crusts which are available in 4,300 retail outlets in the U.S. and Tattooed Chef's online shop.
The company has a market cap of $1.3 billion and posted its revenue of $148.5 million in 2020, up 75% from $84.9 million in 2019. According to the company's forecast, Tattooed Chef's revenue is projected to increase by 49% year over year to $224 million in 2021. The stock has gained 58% in the last twelve months.
There were 11 hedge funds that reported owning stakes in Tattooed Chef, Inc. (NASDAQ: TTCF) at the end of the fourth quarter. The total value of these stakes at the end of Q4 is $106.2 million.
9. B&G Foods, Inc. (NYSE: BGS)
Number of Hedge Fund Holders: 15
B&G Foods, Inc. (NYSE: BGS) ranks 9th on the list of the 10 best vegan stocks to buy now. The shelf-stable and frozen food manufacturer based in New Jersey operates Farmwise LLC, which it acquired in early 2020. Farmwise LLC produces vegan frozen foods, including Veggie Fries, Veggie Rings, and Veggie Tots. The company's vegan, non-GMO project-certified products are free of gluten, wheat, soy, dairy, tree nuts, and peanuts.
The company has a market cap of $1.9 billion. B&G Foods, Inc.'s revenue came in at $1.97 billion in 2020, up from $1.6 billion in 2019. The company offers a dividend yield of 6.23%. Shares of BGS surged 61% over the past twelve months.
There were 15 hedge funds that reported owning stakes in B&G Foods, Inc. (NYSE: BGS) at the end of the fourth quarter. The total value of these stakes at the end of Q4 is $57.2 million.
"Processed and packaged foods manufacturer B&G Foods, Inc. outperformed, most likely due to strong weekly scanner data that showed improving trends in its business as consumers stocked up their pantries and refrigerators during quarantine.”
8. The Hain Celestial Group, Inc. (NASDAQ: HAIN)
Number of Hedge Fund Holders: 23
The Hain Celestial Group, Inc. (HAIN) is one of the leading organic food and natural products manufacturers globally and ranks 8th in our list of the 10 best vegan stocks to buy now. The New York-based organic product company offers vegan and vegetarian meals through its Yves Veggie Cuisine brand and non-dairy beverages and dessert through its Natumi brand.
The company has a market cap of $4.2 billion and net sales of $528.4 million in the second quarter of 2021. Hain Celestial posted its fourth consecutive quarter of sales growth following a 4% increase in net sales compared to 506.8 million in the same quarter in 2019. Piper Sandler analysts upgraded Hain Celestial from Neutral to Overweight in February 2021, with a $50 price target. Shares of HAIN jumped 55.4% over the past twelve months.
There were 23 hedge funds that reported owning stakes in The Hain Celestial Group, Inc. (HAIN) at the end of the fourth quarter, up from 21 funds a quarter earlier. The total value of these stakes at the end of Q4 is $964 million.
7. Beyond Meat, Inc. (NASDAQ: BYND)
Number of Hedge Fund Holders: 27
Beyond Meat, Inc. (NASDAQ: BYND) is the plant-based meat producer behind Carl Jr.'s charbroiled plant-based burger. The California-based alternative meat producer distributes to approximately 28,000 retail stores in the U.S. alone, including Walmart Inc. (NYSE: WMT), Target Corporation (NYSE: TGT), and Costco Wholesale Corporation (NASDAQ: COST). As of December 2020, Beyond Meat, Inc. is offered in approximately 52,000 international retail and foodservice outlets, including Starbucks Corporation (NASDAQ: SBUX). McDonald's Corporation (NYSE: MCD) launched a three-year partnership with Beyond Meat, Inc., as the fast-food chain adds McPlant to its menu that will be released this year in select sites in Sweden and Denmark. Beyond Meat, Inc. is placed 7th on our list of 10 best vegan stocks to buy now.
The company has a market cap of $8.4 billion. In March 2021, Stephens and Co. initiated an Overweight rating for Beyond Meat, with a price target of $190. The company's revenue in the fourth quarter of 2020 came in at $101.9 million, an increase of 3.5% from $98.5 million in 2019. Shares of BYND jumped 34.5% over the past twelve months.
There were 27 hedge funds that reported owning stakes in Beyond Meat, Inc. (NASDAQ: BYND) at the end of the fourth quarter, up from 24 funds a quarter earlier. The total value of these stakes at the end of Q4 is $211.7 million.
6. Conagra Brands, Inc. (NYSE: CAG)
Number of Hedge Fund Holders: 28
Chicago-based consumer and commercial food manufacturer Conagra Brands, Inc. (NYSE: CAG) ranks 6th in our list of 10 best vegan stocks to buy now. The company produces shelf staples, frozen food, and restaurant food products such as sauces and meals. Among the company's vegan and plant-based brands are Gardein, Birds Eye, Log Cabin, and Duncan Hines, acquired from the $10.9 acquisition deal of Pinnacle Foods in October 2018.
The company has a market cap of $18.5 billion. The company's revenue in 2020 came in at $11 billion, up from $9.5 billion in 2019. The company offers a dividend yield of 2.85%. Citigroup Corp analysts gave Conagra Foods a Neutral rating on April 21. The target price was set at $42. The social media savvy company saw a 160% rise in Twitter followers and massive engagement within only 25 days after engaging in Dogecoin content last quarter. Shares of CAG jumped 13.45% over the past twelve months.
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Disclosure: None. 10 Best Vegan Stocks to Buy Now is originally published on Insider Monkey.