At-Home Dining Trends to Keep These 3 Food Stocks Winning in 2021
Dining practices have undergone many changes this year, thanks to the COVID-19 pandemic. With health and safety on the line, the focus has shifted away from trendy dine-out practices to simple and accessible routines. At-home cooking was widely adopted either due to restricted travelling, social distancing and stay-at-home norms or tighter pockets.
With chimneys burning in most households, food products companies are having a gala time. Many players in the food industry are witnessing soaring demand, as consumers continue to load their pantries with essentials needed to cook at home. In fact, stock-piling food products and groceries were common during the initial phase of the outbreak, as consumers wanted to limit their shopping trips. Food companies have also been coming up with innovative ways to make dining at home an enjoyable experience. Some of the players have been providing online recipes and instructions for making meal preparations simpler and convenient.
Industry experts opine that at-home dining trends are likely to stay with us in 2021 as well. They believe that even after the pandemic subsides, owing to mass-vaccinations, it’s still going to take some time for consumers to be confident enough to flock back to restaurants and cafes. Also, the continuation of work-from-home and remote schooling are likely to keep at-home cooking practices relevant. Moreover, many have had to go through job losses or pay cuts this year. Financial strains are therefore likely to make many adhere to at-home dining, instead of indulging in restaurants.
To keep pace with the soaring demand for food items across retail stores and supermarkets as well as e-tail platforms, food companies have been ramping up supply-chain operations. Companies in this space are emphasizing on boosting production of snacks and packaged food products, which are witnessing rising demand lately. Additionally, a number of food companies are enriching their portfolio by adding more natural and organic brands to meet consumers’ growing inclination toward healthy offerings.
Clearly, the continuation of at-home dining practices is likely to brighten prospects for most players in the food space. Investors may, therefore, consider keeping a close watch on some of the stocks from this space that are poised to grow on their solid brand recognition and sturdy offerings.
Price Performance
3 Stocks in Focus
First on our list is The Hain Celestial Group, Inc. HAIN. This New-York based company is engaged in the production of various natural and organic foods as well as personal care products. Markedly, the company is witnessing strong sales trends across the North American and International segments. Moreover, well-chalked innovations, marketing and assortment optimization efforts are supporting the company’s top line. It is also on track with boosting automation capabilities in plants for lowering costs and optimizing operating infrastructure. Markedly, shares of this Zacks Rank #2 (Buy) company have surged 49.9% in the year-to-date period. Also, the Zacks Consensus Estimate for fiscal 2021 sales and earnings indicates a rise of 1.5% and 51.2%, respectively, from the year-ago period’s levels. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
B&G Foods, Inc. BGS is another potential pick. The company is engaged in manufacturing high-quality, shelf stable food products. Some of the popular brands of the company are Green Giant, Back to Nature, McCann’s, Ortega, Victoria and Mama Mary among many others. The company’s top line is gaining from consumers’ rising demand amid the pandemic-led increased at-home consumption and pantry loading trends. The company is strengthening its production capacity to meet the heightened market needs. Additionally, B&G Foods is benefiting from higher online sales, backed by efficient delivery services of its retail customers. Impressively, this Zacks Rank #2 company’s shares have surged 72.9% in the year-to-date period. Moreover, the Zacks Consensus Estimate for 2021 sales and earnings indicates a rise of 4.2% and 2.6%, respectively, from the year-ago period’s levels.
United Natural Foods, Inc. UNFI is a leading distributor of specialty food products in the United States and Canada. The company is gaining from rising demand stemming from coronavirus-induced higher at-home consumption. Additionally, integration synergies related to Supervalu is an upside. Apart from these factors, this Zacks Rank #3 (Hold) company is focused on strategic targets that include efforts such as enhancing customer base, expanding broad-line distribution channel and augmenting its e-commerce business. Speaking of e-commerce, the company is gaining from higher sales at Cub Foods. Markedly, shares of the company have surged 80.9% in the year-to-date period. The Zacks Consensus Estimate for fiscal 2021 sales and earnings indicates a rise of 6.4% and 18.8%, respectively, from the year-ago period’s levels.
Zacks Top 10 Stocks for 2021
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The Hain Celestial Group, Inc. (HAIN) : Free Stock Analysis Report
United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report
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