While the idea of plant-based food may not seem appetizing, its potential profits could be.
In fact, by 2027, according to Research and Markets, the global plant-based food market could grow to about $75 billion by 2028 from $41.06 billion in 2022. All thanks to growing interest in veganism, healthy living, and environmental issues, which could be a big catalyst for the three plant-based stocks for 2024.
For example, according to Research and Markets, “Plant-based foods are gaining popularity due to their advantages for human health and the environment. These products are considered eco-friendly and are associated with lower carbon footprints compared to animal-based diets, appealing to environmentally conscious consumers.”
That being said, investors may want to buy these three plant-based stocks for 2024.
Oatly (OTLY)
One of the top plant-based stocks for 2024 is Oatly (NASDAQ:OTLY).
After plummeting from about $3 to less than 50 cents, Oatly is showing big signs of life again. In fact, after finding support around 50 cents, it popped to about $1.25. From here, I’d like to see it refill its bearish gap around $2 a share initially.
The largest oat drink company is quickly expanding. Just recently, it announced a new distribution arrangement with The Coffee Bean & Tea Leaf Brand, a retailer of specialty coffee and tea. It also announced nationwide product availability at Insomnia Cookies.
Plus, earnings haven’t been too shabby. The company posted an EPS loss of seven cents that beat expectations by five cents. Revenue reached $187.6 million which represents a 2.5% year-over-year increase. The company’s adjusted EBITDA loss of $36 million is a $46.7 million improvement compared to the same time last year.
US Vegan Climate ETF (VEGN)
Or, if you want to diversify at a low cost, there’s always an exchange-traded fund (ETF) like the US Vegan Climate ETF (CBOE:VEGN).
With an expense ratio of 0.60%, the ETF “tracks the Beyond Investing US Vegan Climate Index. VEGAN screens large-cap US companies for a variety of ESG (Environmental, Social, Governance) considerations, primarily animal harm and exploitation, as well as fossil fuels, environmental damage, and human rights,” as noted by VeganETF.com.
While the ETF is a bit overbought at the moment, consider buying on dips. With strong interest from investors, the ETF ran from a 2023 low of $31 to a high of $43.
Some of its top holdings include Nvidia (NASDAQ:NVDA), Tesla (NASDAQ:TSLA), Broadcom (NASDAQ:AVGO), Visa (NYSE:V), MasterCard (NYSE:MA), and Cisco (NASDAQ:CSCO) to name a few of the top ones.
Ingredion Inc. (INGR)
There’s also Ingredion (NYSE:INGR), a major player in the plant-based food market.
As noted by Investorplace contributor Muslim Farooque, “Its pea protein isolate, with a high 85% protein content, is ideal for enhancing various plant-based foods and beverages. Similarly, the company’s pea starch finds versatile applications, including in the production of plant-based cheeses, aligning with evolving consumer trends toward health-conscious eating.”
Earnings haven’t been too shabby here either. In its most recent quarter, the company’s adjusted EPS of $2.33 beat by 38 cents. And while revenue grew 0.5% year over year to $2.03 billion, it still missed by $90 million. At the same time, INGR did raise its full-year adjusted EPS outlook to a range of $9.05 to $9.45 from a prior range of $8.80 to $9.40.
The bullish thesis gained momentum as INGR just declared a quarterly dividend of $0.78 per share. The dividend is payable on Jan. 23 to shareholders of record at the close of business on Jan. 2. If you missed out on this one, more should be on the way.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
