Top Food and Healthcare stocks. And more…

Ethical & Sustainable Investing News to Profit By!

Top Food and Healthcare stocks. And more… Includes a 100-company ranking of companies producing the most favorable human life impacts.

By Ron Robins, MBA

Transcript & Links, Episode 136, August 23, 2024

Hello, Ron Robins here. It’s good to be back after my summer break! So, welcome to this podcast episode 136 titled “Top Food and Healthcare stocks. And more…” Presented by Investing for the Soul. Investingforthesoul.com is your site for vital global ethical and sustainable investing mentoring, news, commentary, information, and resources.

Now, remember that you can find a full transcript, and links to content – including stock symbols and bonus material – on this episode’s podcast page at investingforthesoul.com/podcasts.

Also, a reminder. I do not evaluate any of the stocks or funds mentioned in these podcasts, and I don’t receive any compensation from anyone covered in these podcasts. Furthermore, I will reveal to you any personal investments I have in the investments mentioned herein.

Additionally, quotes about individual companies are brief. Please go to this podcast's webpage for links to the articles for more company and stock information.

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3 Plant-Based Food Stocks That Could Be Multibaggers in the Making: July Edition

I’m starting with this article on food stocks as it’s a segment that many of you are interested in. It’s titled 3 Plant-Based Food Stocks That Could Be Multibaggers in the Making: July Edition. It’s by Philippa Main and found on investorplace.com. Now some quotes from the article.

“Investors have many reasons for investing in plant-based food stocks… But there are also a lot of ups and downs in the vegan-friendly and plant-based industries. Even one of the most recognizable names in the vegan meat industry, Beyond Meat (NASDAQ:BYND), has been down consistently over the last five years, with very few times of sustained value.

However, the overall sector’s potential for growth remains robust… The plant-based food market value is currently at $46.7 billion and could expand to $96.6 billion by 2033. That’s a compound annual growth rate (CAGR) of 8.4%...

1. Laird Superfood (NYSEAMERICAN:LSF)

Specializes in providing plant-based coffee creamers, hydration supplements and other foods. The stock topped out at $57 in 2020 but has since dropped dramatically. It is now trading at around $4 a share. However, recent quarterly results prove that the company is back on the upswing…

The company’s 22% net sales growth during the first quarter was among the top results for any company in the food industry. The company saw at least a 40% gross margin. While the company still operates at a net loss, its balance sheet remains strong with no debt. The company raised its outlook for net sales thanks to the positive Q1 results.

Laird Superfood stock is affordable for investors looking to enter the vegan-friendly and plant-based food stocks segment. Laird Superfood has many potential growth opportunities on the horizon… It recently received a $32 million influx of funding from WeWork. All this combined means investing now could see great returns in the long term.

2. SunOpta (NASDAQ:STKL)

has been producing plant-based food and beverages for over 50 years. In the past three years, the company has committed over $200 million to expanding production capacity and reaching its goal of doubling its plant-based business by 2025.

Across the several segments the company operates in, there is a $22 billion addressable market. The company’s nutritional beverages sector saw the largest year-over-year (YOY) growth at 20%. The company also partners with other major names in the food retail industry.

These include Costco (NASDAQ:COST), Walmart (NYSE:WMT) and Target (NYSE:TGT). Partnering with big retail brands helps increase the exposure of its products and, in turn, generates higher sales volume.

SunOpta stock has had its ups and downs over the past five years but currently has a 93% upside.

3. Tyson Foods (NYSE:TSN)

One of the most well-known chicken brands in the U.S. may not seem like a good pick for a list of plant-based food stocks. For investors who want to feel good about investing in companies working toward making more plant-based options but don’t want to gamble on a company solely focused on that sector, Tyson Foods is a good way to diversify.

Though down substantially over the last five years, Tyson Foods stock has seen a rally of 10% in the last 12 months and 6.5% year-to-date (YTD). In the previous five years, Tyson has been increasing its plant-based offerings through its brand, Raised and Rooted, and has 10 plant-based products. These include plant-based patties, ground meat substitutes, sausages and nuggets. As inflation dampens demand for meat as prices soar, Tyson’s presence in the plant-based industry will give it a head start compared to its competitors.

Though there have been some financial troubles for the company in the last year or so, things are starting to turn around.”

End quotes.

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The energy transition from fossil fuels will power these stocks - including Big Oil

Now, this next article acknowledges the energy transition, however, some of the comments and companies suggested will not appeal to many ethical and sustainable investors. I wondered long and hard as to include this article or not. However, since the European Commission is likely to include natural gas in its preferred funding energy financing initiative, I ‘dared’ to include it.

The article is titled The energy transition from fossil fuels will power these stocks - including Big Oil. It’s by Jakob Wilhelmus, provided by Dow Jones, and found on morningstar.com. Here are some quotes.

“Modernizing the grid

The International Energy Agency estimates that to power itself primarily with renewable energy, the world would need to add or replace nearly 50 million miles of transmission lines by 2040…

For investors, that creates opportunity around the complementary infrastructure that is needed to build out the grid.

Companies such as Eaton (ETN) that provide essential components - including inverters or substations for transmission lines - are well-positioned to take advantage of these ambitious goals. Their central role in the energy transition over coming years may not be fully appreciated today, but markets might soon catch up.

Shifting to the greener end of fossil fuels

Fossil fuels will certainly continue to be a component of the energy system of the future… Indeed, global demand for liquified natural gas (LNG) is expected to grow by more than 50% by 2040 as the coal-to-gas transition expands in China and South Asia…

For investors, it is critical to seek energy-sector companies that are forward-looking and are finding ways to remain energy providers regardless of what the primary energy sources might be.

Two such companies are TotalEnergies (TTE) and Shell (SHEL), which are expanding natural-gas production and transport capabilities.

Pipelines are another way to take advantage of the global shift to natural gas. Often these firms have long-term purchase agreements in place, providing investors with an attractive ‘toll collection’ that provides a differentiated risk-return proposition in the natural-gas space: exposure to booming demand with less exposure to short-term price volatility. These characteristics and accompanying cash flows make major pipeline players including Enbridge (ENB) and Kinder Morgan (KMI) particularly interesting for debt investors.

Getting smart on energy use

Investors should also pay close attention to innovation around managing demand and using energy supplies more efficiently…

This has created a two-way system, where customers actively manage their energy consumption through smart appliances or storage, while system operators have increased capabilities to manage electricity distribution and generation.

This development might benefit companies, such as Schneider Electric (SBGSY), that provide smart sensors and devices all the way to the software that allows grid operators to optimize supply and demand…

Global renewable capacity grew by 50% in 2023 and these sources offer some of the lowest cost of producing electricity today. But even this pace of growth in renewables may not be enough to account for the steep rise in energy demand.”

End quotes.

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The 3 Best Healthcare Stocks to Buy in August 2024

Now, here’s an article on another favorite sector, healthcare, and it’s titled The 3 Best Healthcare Stocks to Buy in August 2024. It’s by investorplace.com and was seen on markets.businessinsider.com. Here are some interesting quotes.

“The healthcare industry has been a critical part of the economy for a long time. According to a McKinsey & Company report, the healthcare industry is expected to grow at 7% from 2022 to 2027.

1. Bristol-Myers Squibb (NYSE:BMY).

The pharmaceutical powerhouse consistently ranks as one of the top companies on the market, and has several drugs that generate billions of dollars in revenue. Furthermore, Bristol-Myers Squibb has a number of drugs currently in clinical trials that could bring in huge success over the next decade. Among these is schizophrenia treatment Eliquis KarXT. The drug is expected to receive a recommendation from the FDA as early as next month. If it gets approved, it will be the first newly developed treatment for schizophrenia. That is a market that is estimated to grow to more than $7 billion in just four years. Right now, the stock is down over 10% this year alone and 20% year-over-year. Investors should buy while the stock is down.

2. AMN Healthcare Services (NYSE:AMN)

is a medical care facilities company. It supplies healthcare workers, including nurses and industry professionals, on a temporary basis. It experienced huge success from high healthcare worker demand when there was a worker shortage. For those investors who are looking for high-risk, high-reward healthcare stocks, AMN should be on their radar.

The company’s recent earnings reports look very promising. In Q2 2024, AMN reported earnings per share (EPS) of 98 cents, beating analyst’s estimates by almost 20 cents. This was the fourth consecutive quarter that AMN Healthcare Services beat the earnings estimate. Furthermore, AMN trades at 13.64 times forward price to earnings ratio, which is lower than the majority of its competitors in the market. Before it bounces back to its peak price from 2022, investors should buy the stock.

3. Rapport Therapeutics (NASDAQ:RAPP),

a biotech company that is backed by Johnson & Johnson (NYSE:JNJ). The company went public on June 7th of this year, and it raised $154 million in initial public offering. The stock price ended up to over $20 on the first day it went public, and as of writing, it goes for $19.05. While there is still lots to learn about the company as it is new to the market, there are certainly things that will attract many investors.

Rapport Therapists is currently developing a focal epilepsy drug. The phase two trials should begin in the next few months, which means that there is going to be exciting news for the biotech startup for the upcoming years. This is especially exciting considering that in the U.S. alone, there are more than three million adult epilepsy patients, which means that it is a sizable market with room to explore.”

End quotes.

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The 2024 Humankind 100 List

This next article is a company ranking I watch every year as its methodology is fascinating. It’s the Humankind 100 List and the 2024 edition has just been published. I found it on businesswire.com. Here are some quotes.

“As the challenges of creating transparency around Environmental, Social and Governance (ESG) data and rankings become increasingly apparent, Humankind developed a holistic, quantitative way to calculate impact in terms of human benefit versus human suffering…

This year, Alphabet (GOOGL)… scored highest in the ranking. The positive value of creating free digital tools for consumers outweighs the negative impact of factors like data harvesting in Humankind’s analysis.

Other companies rounding out the top 10 include: Eli Lilly & Co. (LLY), Johnson & Johnson (JNJ), AbbVie Inc. (ABBV), Merck & Co. (MRK), Procter & Gamble (PG), Pfizer (PFE), Amgen (AMGN), Microsoft Corp (MSFT), and Bristol-Myers Squibb (BMY). The complete rankings… can be found at rankings.humankind.co.”

End quotes.

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Finally, here’s one other article that will interest some of you. It’s titled Bank of New York Mellon a Top Socially Responsible Dividend Stock With 2.9% Yield. It’s by BNK Invest and found on Nasdaq.com.

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Ending Comment

Well, these are my top news stories with their stock and fund tips for this podcast titled: “Top Food and Healthcare stocks. And more…”

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Now my next podcast will be September 6th.

I’ll talk to you then!

Bye for now.

© 2023 Ron Robins, Investing for the Soul