Natural foods companies produce and market healthier, organic and sustainable products, including natural fruits, vegetables, dairy products, whole grains, legumes, spices, meat and seafood. Demand for natural foods has been growing steadily, with consumers becoming more health-conscious and environmentally aware. This space features companies involved in the production and distribution of natural foods.

Here we recommend five natural foods stocks to invest in for a stable portfolio in 2025. These are Beyond Meat Inc. BYND, Sprouts Farmers Market Inc. SFM, United Natural Foods Inc. UNFI, Pilgrim's Pride Corp. PPC and Cal-Maine Foods Inc. CALM. 

Pros and Cons of Natural Food Stocks

These days, consumers are more informed about the benefits of natural foods, driving sales and profitability of companies in this sector. Moreover, companies in this space often benefit from strong brand loyalty and the ability to command premium prices. Additionally, sustainable farming practices associated with natural foods can lead to long-term environmental benefits, potentially reducing regulatory risks. 

However, natural foods companies are challenged by higher production costs due to the need for organic farming methods, which can reduce profit margins. Also, the space is subject to stringent regulations and certification processes, which can lead to increased compliance costs. Economic slowdown can also impact consumer spending on premium-priced natural products. As such, careful consideration and due diligence are essential before committing to this space. 

Buy 5 Natural Food Stocks

These stocks have seen positive earnings estimate revisions over the last 60 days. Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our five picks year to date.

Image Source: Zacks Investment Research

Beyond Meat Inc.

Zacks Rank #2 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.

Beyond Meat has an expected revenue and earnings growth rate of 0.7% and 31.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.8% over the last 30 days. 

Sprouts Farmers Market Inc.

Zacks Rank #2 Sprouts Farmers’ focus on product innovation, emphasis on e-commerce, expansion of private label offerings and targeted marketing with everyday great pricing bodes well. SFM has been lowering operational complexity, optimizing production, improving in-stock position and updating to smaller-format stores. These efforts helped SFM post better-than-expected fourth-quarter 2024 results, wherein both the top and the bottom lines grew year over year. 

Buoyed by the performance, Sprouts Farmers provided a decent 2025 view. SFM expects net sales to rise between 10.5% and 12.5% with comps anticipated to increase in the range of 4.5-6.5%. SFM’s strong sales growth, margin expansion and disciplined financial management position it as a compelling investment opportunity.

Sprouts Farmers has an expected revenue and earnings growth rate of 11.9% and 24.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 8.6% over the last 30 days.

United Natural Foods Inc.

Zacks Rank #2 United Natural Foods has showcased significant growth and operational resilience, driven by strong demand in its wholesale segment and a focus on consumer trends favoring natural and organic products. UNFI’s strategic initiatives, such as expanding its customer base, optimizing its distribution network, and investing in automation, have enhanced efficiency and market penetration. 

Lean management practices have played a key role in improving operational effectiveness, aligning supply with customer needs, and driving cost savings. UNFI’s commitment to enhancing cash flow and reducing debt highlights a disciplined approach. UNFI raised its sales guidance for fiscal 2025 following better-than-expected first-quarter fiscal 2025 results.

United Natural Foods has an expected revenue and earnings growth rate of 1.9% and more than 100%, respectively, for the current year (ending July 2025). The Zacks Consensus Estimate for current-year earnings has improved 7.9% over the last 30 days.

Pilgrim's Pride Corp.

Zacks Rank #1 Pilgrim's Pride continues to drive growth through portfolio diversification, branded offerings and key customer partnerships, strengthening its competitive edge. In the fourth quarter of 2024, PPC focused on quality, service and innovation while enhancing operational efficiencies and cost management. Strong demand across key segments, particularly in food service, highlights PPC’s market positioning. 

Investments in automation and process improvements have driven margin expansion and resilience. With the United States Department of Agriculture projecting 1.4% growth in U.S. chicken production, PPC plans to leverage cost management, automation, product innovation and efficiencies to enhance stability, competitiveness and profitability. Continued investments in capacity expansion and technology will help PPC meet evolving consumer demands and support growth.

Pilgrim's Pride has an expected earnings growth rate of -2.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.9% over the last 30 days.

Cal-Maine Foods Inc.

Zacks Rank #1 Cal-Maine Foods is engaged in the production, grading, packaging, marketing, and distribution of shell eggs and egg products. CALM offers specialty eggs, such as nutritionally enhanced, cage free, organic, free-range, pasture-raised, and brown eggs, as well as conventional eggs under the Egg-Land's Best, Land O' Lakes, Farmhouse Eggs, Sunups, Sunny Meadow, and 4-Grain brand names. 

CALM sells its products to various customers, including national and regional grocery store chains, club stores, independent supermarkets, foodservice distributors, and egg product consumers primarily in the southwestern, southeastern, mid-western, northeastern, and mid-Atlantic regions of the United States.

Cal-Maine Foods has an expected earnings growth rate of more than 100% for the current year (ending May 2025). The Zacks Consensus Estimate for current-year earnings has improved 82.6% over the last 60 days.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Cal-Maine Foods, Inc. (CALM) : Free Stock Analysis Report

Pilgrim's Pride Corporation (PPC) : Free Stock Analysis Report

United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report

Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report

Beyond Meat, Inc. (BYND) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research