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Agricultural technology (AgriTech) and food innovation companies develop technologies to enhance farming efficiency, sustainability and food production. These companies offer a compelling investment opportunity driven by the need for sustainable food production and improved food security.
AgriTech encompasses innovations such as precision farming, smart irrigation, drone technology and agricultural biotechnology, which boost crop yields, minimize resource usage, and lower food production costs and environmental impact. Food innovation, including plant-based proteins and lab-grown meat, aims to meet the growing demand for sustainable and ethical food alternatives.
At this stage, it will be prudent to invest in AgriTech and Food innovation stocks to stabilize your portfolio in 2025. Two such stocks with a favorable Zacks Rank are: Beyond Meat Inc. BYND and Tyson Foods Inc. TSN.
Pros and Cons of AgriTech & Food Innovation Space
AgTech and food innovation address critical global challenges such as climate change, population growth and resource scarcity. Increasing demand for sustainable food sources to feed a growing global population bolsters the market potential for these technologies. Companies operating in these industries are often at the forefront of technological advancements, offering substantial growth opportunities and the potential for high returns.
However, these are still emerging fields, with many companies in the early development stages posing higher risk and volatility. Regulatory hurdles, lengthy product development cycles, high research and development costs and slow market adoption are the other challenges. This space features companies involved in developing advanced technologies and solutions in the agriculture and food industries.
Buy 2 AgriTech & Food Innovation Stocks
These two stocks have strong revenue and earnings growth potential for 2025. Moreover, these two stocks have seen positive earnings estimate revisions in the last 30 days. Each of our picks sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our two picks year to date.
Image Source: Zacks Investment Research
Beyond Meat Inc.
Beyond Meat is a plant-based meat company, engaged in the development, manufacture, marketing, and sale of plant-based meat products under the Beyond brand name in the United States and internationally.
BYND sells a range of plant-based meat products that replicates beef, pork, and poultry meats. BYND sells its products through grocery, mass merchandiser, club stores, and natural retailer channels, as well as various food-away-from-home channels, including restaurants, foodservice outlets, and schools.