In this article, we will look at the 11 Best Natural and Organic Food Stocks to Buy Now.
On February 17, Mohamed El-Erian, chief economic advisor at Allianz, appeared on CNBC’s ‘Squawk on the Street’ to talk about the market’s economic themes and the state of the labor market.
He was of the view that we are now in a different market, one that does not have the same “love affair” with AI as we had last year. This market, according to him, can be defined and will continue to be defined by three words: volatility, dispersion, and fragmentation. He stated that he would build his position bottom up instead of top down, and would certainly pick up names that were impacted by this theory of the market for lemons, which means they overshoot on the way down because they end up having a technical correlation with names that are weaker.
READ ALSO: 11 Best Strong Buy Penny Stocks to Invest In and 10 Best Medical Research Stocks to Buy According to Hedge Funds.
El-Erian thus considers this a massive opportunity for stock picks, not just in the AI world, but also in the sectors impacted by AI. For him, this is a world where people should be building portfolios bottom up and choosing some “really good bargains”. He further clarified that this does not mean buying in the sectors across the board, but rather buying those with strong balance sheets, strong business models, and strong leadership. The volatility that he is foreseeing for the rest of the year ties primarily to AI and geopolitical circumstances, with his focus being more on geoeconomics rather than geopolitics.
With these broader market trends in view, let’s narrow down and look at the best natural and organic food stocks to buy now.
Our Methodology
We sifted through the Finviz stock screener and financial media reports to compile a list of the best natural and organic food stocks and then selected the top 11 most popular among elite hedge funds as of Q3 2025. We sourced the hedge fund data from Insider Monkey’s database. The stocks are ranked in ascending order of hedge fund sentiment.
Note: All data was recorded on February 17.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11 Best Natural and Organic Food Stocks to Buy Now
11. The Hain Celestial Group, Inc. (NASDAQ:HAIN)
Number of Hedge Fund Holders: 14
The Hain Celestial Group, Inc. (NASDAQ:HAIN) is one of the best natural and organic food stocks to buy now. On February 17, Stephens adjusted the price target on The Hain Celestial Group, Inc. (NASDAQ:HAIN) to $1 from $2 while maintaining an Equal Weight rating on the shares. The rating update came after the company released its fiscal Q2 earnings, with the firm stating that it believes investors require clearer signs of distribution stabilization, sustained velocity improvement, and consistent top-line execution before their views can turn constructive.
Stifel also adjusted the price target on The Hain Celestial Group, Inc. (NASDAQ:HAIN) to $1 from $1.50 on February 10 and reaffirmed a Hold rating on the shares following the earnings release. It told investors that although the “sequential progress in pockets of the business is encouraging,” it sees considerable risk as the company continues its strategic review. This may include asset sales, as well as the upcoming credit maturity.
The Hain Celestial Group, Inc. (NASDAQ:HAIN) released its fiscal Q2 2026 results on February 9, with net sales for the quarter down 7% year-over-year to $384 million. Organic net sales decreased 7% compared to the prior year period, with the drop comprising a 9-point decrease in volume/mix, partially offset by a 2-point increase in pricing. The company further reported that the gross profit margin was 19.4%, reflecting a 330-basis point decrease from the prior year period.
The Hain Celestial Group, Inc. (NASDAQ:HAIN) is a prominent US-based company specializing in natural and organic foods, as well as personal-care products. It operates in over 75 countries, offering various items across snacks, baby products, beverages, meal components, and personal care. Its brand portfolio includes Terra Chips, Garden Veggie Snacks, Garden of Eatin’ snacks, Hartley’s Jelly, Joya and Natumi plant-based beverages, and others. Its customer base generally includes supermarkets, natural food stores, specialty and natural food distributors, mass-market, and club stores.
10. Natural Grocers by Vitamin Cottage, Inc. (NYSE:NGVC)
Number of Hedge Fund Holders: 21
Natural Grocers by Vitamin Cottage, Inc. (NYSE:NGVC) is one of the best natural and organic food stocks to buy now. On February 13, Natural Grocers by Vitamin Cottage, Inc. (NYSE:NGVC) was initiated with a Buy rating and $36 price target by Freedom Capital, with the firm telling investors in a research note that the company is a specialty grocery retailer with a focus on organic and natural foods, wellness products, and dietary supplements. It added that the stock is well positioned within a “defensive segment” of food retail, benefiting from long-term growth and stable demand.
In another development, Natural Grocers by Vitamin Cottage, Inc. (NYSE:NGVC) announced on February 6 its expansion to Lake Geneva, Wisconsin, where it is set to open a new store this spring. The location marks the company’s first store in Wisconsin and is a notable milestone for Natural Grocers by Vitamin Cottage, Inc. (NYSE:NGVC).
The company announced its fiscal Q1 2026 results on February 5, reporting a net sales growth of 1.6% to $335.6 million. The daily average comparable store sales rose 1.7%, and 10.6% on a two-year basis, while net income grew 14.0% to $11.3 million with diluted earnings per share of $0.49.
Natural Grocers by Vitamin Cottage, Inc. (NYSE:NGVC) is a retailer of natural and organic groceries, dietary supplements, and body care products. The company emphasizes high-quality standards, ensuring its products do not contain artificial colors, flavors, or preservatives. It exclusively sells USDA-certified organic produce, pasture-raised dairy products, and free-range eggs, and its product portfolio includes an elaborate range of products for special diets, such as non-dairy, vegetarian, and gluten-free.
9. Simply Good Foods Company (NASDAQ:SMPL)
Number of Hedge Fund Holders: 35
Simply Good Foods Company (NASDAQ:SMPL) is one of the best natural and organic food stocks to buy now. On January 20, Morgan Stanley reaffirmed a Hold rating on Simply Good Foods Company (NASDAQ:SMPL) and set a price target of $24.00. The stock also received a rating update from Stifel Nicolaus on January 20, with the firm assigning a Buy rating and a $32 price target to Simply Good Foods Company (NASDAQ:SMPL).
The firm told investors that it considers the return of Joe Scalzo as CEO as a strategically significant move, adding that the focus under his leadership is anticipated to be on underperformance in areas like Quest bars outside salty snacks, stabilization of the Atkins brand at a more durable scale, and sustaining growth for the Quest and OWYN franchises.
Stifel also cited Simply Good Foods Company’s (NASDAQ:SMPL) financial flexibility as a significant factor supporting the optimistic rating, adding that the balance sheet carried modest leverage with room for strategic actions, including a disciplined M&A approach that bolsters the growth profile. In addition, the firm expects profitability to make a gradual recovery, with margins bouncing back toward the high‑30% range. According to the firm, this trend can support a healthier balance between earnings growth and reinvestment, supporting the Buy rating.
Simply Good Foods Company (NASDAQ:SMPL) is a consumer packaged food and beverage company that develops, sells, and markets nutritional food and snacking items. The company’s product portfolio includes natural offerings, snacks, frozen meals, protein bars, ready-to-drink shakes, and frozen meals under the Quest and Atkins brands.
8. Tyson Foods, Inc. (NYSE:TSN)
Number of Hedge Fund Holders: 38
Tyson Foods, Inc. (NYSE:TSN) is one of the best natural and organic food stocks to buy now. On February 3, BofA adjusted the price target on Tyson Foods, Inc. (NYSE:TSN) to $68 from $65 while maintaining a Neutral rating on the shares. The firm told investors that it raised its FY26, FY27, and FY28 adjusted EPS estimates to $3.73, $4.83, and $5.74, respectively, following the company’s announcement of its Q1 adjusted operating income and EPS that were largely in line with BofA estimates. The firm further noted that while pork was better than expected, beef was worse.
The same day, JPMorgan also revised the price target on Tyson Foods, Inc. (NYSE:TSN) to $67 from $63 while maintaining a Neutral rating on the shares. The rating update came after the company’s earnings release, with the firm telling investors that Tyson Foods, Inc. (NYSE:TSN) experienced continued challenges in beef but encouraging signs elsewhere.
Tyson Foods, Inc. (NYSE:TSN) also received a rating update from BMO Capital on February 3, with the firm lifting the price target on the stock to $73 from $67 while maintaining an Outperform rating on the shares.
Tyson Foods, Inc. (NYSE:TSN) is a food company that operates in the Beef, Chicken, Pork, and Prepared Foods segments. Its portfolio of brands includes Tyson, Jimmy Dean, Ball Park, Hillshire Farm, State Fair, Aidells, and more. The company offers natural and fresh primal and sub-primal meat cuts, case-ready products, and fresh and frozen chicken products.
7. Albertsons Companies, Inc. (NYSE:ACI)
Number of Hedge Fund Holders: 40
Albertsons Companies, Inc. (NYSE:ACI) is one of the best natural and organic food stocks to buy now. Albertsons Companies, Inc. (NYSE:ACI) provided an update on the developments in its AI strategy on February 12, announcing its participation in the OpenAI Ad Pilot Program, which marks an early test to explore the ways new ad formats in ChatGPT can create a more efficient, relevant, and personalized advertising experience for customers. Management reported that Albertsons Companies, Inc. (NYSE:ACI), as a pilot partner, would help explore how helpful and relevant ads unlock value for brands and users in conversational experiences.
Jennifer Saenz, Chief Commercial Officer at Albertsons Companies, Inc. (NYSE:ACI), stated that joining the OpenAI Ad Pilot Program offers the company a “unique opportunity” to explore innovative ways to connect consumers with the right Albertsons Companies products at the right time through a thoughtful integration into the digital experiences.
In a separate development, Guggenheim reiterated a Hold rating on Albertsons Companies, Inc. (NYSE:ACI) on January 23. The stock also received a rating update from Morgan Stanley on January 15, with the firm downgrading Albertsons Companies, Inc. (NYSE:ACI) to Underweight from Equal Weight while bringing the price target down to $14 from $20. The firm cited the company’s pharmacy pressure, market share loss, and disinflation for the rating downgrade, adding that an intensification in “grocery wars” can be observed with increasing e-commerce partnerships, price investments, and promotional activity.
Albertsons (NYSE:ACI) is a food and drug retailer in the US that operates retail stores selling natural and fresh grocery items, organic food, general merchandise, health and beauty care products, fuel, pharmacy, and other items and services through its brick-and-mortar stores and digital channels. The company operates under various banners, including Albertsons, Vons, Randalls, Carrs, Acme, Star Market, Market Street, Kings Food Markets, Haggen, and others.
6. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 48
General Mills, Inc. (NYSE:GIS) is one of the best natural and organic food stocks to buy now. BofA cut the price target on General Mills, Inc. (NYSE:GIS) to $55 from $61 on February 17 while maintaining a bullish outlook. It assigned a Buy rating to the stock after the company presented at CAGNY earlier the same day, issuing a press release lowering its FY26 outlook. The firm lowered its fiscal year 2026 adjusted EPS forecast to $3.44 from $3.70 following the guidance cut. BofA stated that the current valuation “bakes in short-term pressures” in North America Retail, acknowledging that certain tailwinds will help offset.
General Mills, Inc. (NYSE:GIS) updated its full-year fiscal 2026 outlook on February 17 amid a “challenging consumer environment”, stating that increased uncertainty, weak consumer sentiment, and considerable volatility have affected consumer purchase patterns and weighed on category growth. This has resulted in a slower pace and higher cost of volume recovery than initially expected, which is why the company now expects its organic net sales to be down 1.5% to 2%, compared to the previous range of down 1% to up 1%. In addition, General Mills, Inc. (NYSE:GIS) expects the adjusted operating profit and adjusted diluted EPS to be down 16% to 20% in constant currency, compared to the previous range of down 10% to 15% in constant currency.
General Mills, Inc. (NYSE:GIS) manufactures and markets branded consumer foods, including natural and organic food items. The company’s brand portfolio includes Annie’s, Betty Crocker, Cheerios, Wheaties, and more. Its operations are divided into the North America Retail, International, North America Pet, and North America Foodservice segments.
5. Target Corporation (NYSE:TGT)
Number of Hedge Fund Holders: 52
Target Corporation (NYSE:TGT) is one of the best natural and organic food stocks to buy now. On February 17, Guggenheim lifted the price target on Target Corporation (NYSE:TGT) to $125 from $110 while maintaining a Buy rating on the shares. The firm raised the price target based on its above-consensus 2026 EPS forecast, stating that it, along with the Street, models a fiscal Q1 same-store sales inflection to 0%-1%, which is “not a Herculean task against a negative 7.5% two-year compare”.
In another development, Bernstein reiterated a Sell rating on Target Corporation (NYSE:TGT) on February 14, setting a price target of $80.00. Target Corporation (NYSE:TGT) also received a rating update from Citi on February 12, with the firm adjusting the price target on the stock to $110 from $89 while maintaining a Neutral rating on the shares.
The rating updates came after Target Corporation (NYSE:TGT) announced a series of executive leadership changes under the new CEO on February 10, stating that the changes are aimed at expediting the company’s growth plans following the recent additions to the Board of Directors. The same day, the company confirmed that it expects to report fiscal Q4 2025 sales, full-year GAAP EPS, and full-year adjusted EPS in line with its prior guidance.
Target Corporation (NYSE:TGT) offers a range of items to its customers, including natural and organic food options, everyday essentials, differentiated merchandise at discounted prices, and general merchandise. Its merchandise categories span food and beverages, home furnishing and decor, and others.
4. Sprouts Farmers Market, Inc. (NASDAQ:SFM)
Number of Hedge Fund Holders: 53
Sprouts Farmers Market, Inc. (NASDAQ:SFM) is one of the best natural and organic food stocks to buy now. On February 12, Wells Fargo adjusted the price target on Sprouts Farmers Market, Inc. (NASDAQ:SFM) to $110 from $135 while maintaining an Overweight rating on the shares. The firm told investors that the setup into the print appears mixed, with fiscal Q4 results likely to be in line in a backdrop where the firm expects a below Street FY26 guide with soft first half of the year same-store sales lingering. It added that although the near-term outlook is tough, it still sees the underpinnings of a second-half of-the-year recovery.
In a separate development, Evercore ISI adjusted the price target on Sprouts Farmers Market, Inc. (NASDAQ:SFM) to $83 from $130 on February 10. The firm maintained an Outperform rating on the shares and added the stock to its “Tactical Underperform” list ahead of the company reporting Q4 EPS after market close on February 19.
Evercore further told investors that it sees Sprouts Farmers Market, Inc. (NASDAQ:SFM) as favorably exposed to healthy eating trends in the longer term. However, it also sees an 8%-12% downside into earnings as it is reducing its comp and EPS expectation for calendar 2026 to take into account its read of the data for Q4 and learnings from a recent New York store opening visit.
Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a specialty natural and organic food retailer that offers a specialty grocery experience. Its products are made of organic, plant-based, gluten-free, and similar lifestyle-friendly ingredients.
3. The Kroger Co. (NYSE:KR)
Number of Hedge Fund Holders: 55
The Kroger Co. (NYSE:KR) is one of the best natural and organic food stocks to buy now. The Kroger Co. (NYSE:KR) received a rating update from Jefferies on February 12, with the firm reaffirming a Buy rating on the stock with a price target of $80.00. In another development, The Kroger Co. (NYSE:KR) announced on February 9 that its Board of Directors appointed Greg Foran as Chief Executive Officer, effective immediately.
Foran succeeded Ron Sargent, who served as interim CEO since March 2025, and also joined the company’s Board of Directors. Management reported that the announcement came after an extensive search process conducted by the Board to identify an innovative retail leader with a strong track record of execution at scale.
The same day, Reuters reported that Foran previously served as the CEO of Air New Zealand for about five years until October 2025 and also held the position of the president and CEO of Walmart’s U.S. operations between 2014 and 2019. Following the update, Guggenheim reaffirmed its Buy rating on The Kroger Co. (NYSE:KR) on February 9 and set a price target of $78.00 on the shares.
The Kroger Co. (NYSE:KR) is a food and drug retailer that operates supermarkets, fulfillment centers, and multi-department stores, and has various natural and organic food offerings. Its brand portfolio includes Simple Truth Organic, Smart Way, Big K, Heritage Farm, and Simple Truth.
2. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 88
Costco Wholesale Corporation (NASDAQ:COST) is one of the best natural and organic food stocks to buy now. Bernstein reaffirmed a Buy rating on Costco Wholesale Corporation (NASDAQ:COST) on February 12 with a price target of $1,155. The firm previously released a rating update on February 9, raising the price target on the stock to $1,155 from $1,146 while maintaining an Outperform rating on the shares.
The firm told investors that fiscal Q4 found U.S. retail at an interesting juncture, with consumer sentiment remaining weak and food inflation rebounding despite egg price deflation on one hand, and a rotation out of growth and technology stocks buoying the sector year-to-date on the other. It added that there are puts and takes on the macro that are making it hard for investors to chart a course through fiscal year 2026, including drug pricing, SNAP, tariff reversals, tax refunds, and a potential World Cup bounce.
In a separate development, Evercore ISI reaffirmed an Outperform rating on Costco Wholesale Corporation (NASDAQ:COST) and raised the price target on the stock to $1,050 from $1,025.
Costco Wholesale Corporation (NASDAQ:COST) operates membership-only big box warehouse club stores with comprehensive offerings, including natural and organic foods, beverages, groceries, and more.
1. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 104
Walmart Inc. (NYSE:WMT) is one of the best natural and organic food stocks to buy now. In a report released on February 17, Telsey Advisory reaffirmed a Buy rating on Walmart Inc. (NYSE:WMT) and set a price target of $135.00. The same day, Rothschild & Co Redburn raised their price target on the stock to $150 from $110 while reiterating a Buy rating on the shares and telling investors that it sees the company’s digital opportunities driving 14% annual earnings growth through 2028. According to the firm, Walmart Inc. (NYSE:WMT) has “multiple levers” to deliver this growth, with its AI opportunities driving incremental upside.
Walmart Inc. (NYSE:WMT) also received a rating update from KeyBanc on February 13, with the firm adjusting the price target on the stock to $145 from $128 and keeping an Overweight rating on the shares. It told investors that Walmart Inc. (NYSE:WMT) is one of the best-positioned names to navigate the current environment. The firm added that while economic data is exhibiting mixed signals with improved housing data and job growth and lower mortgage/interest rates, headwinds remain from a higher cost of living and low consumer confidence. Looking ahead, KeyBanc sees a potential positive catalyst to spending from easier monetary policy and higher tax refunds, which should help accelerate spending in the months ahead.
Walmart Inc. (NYSE:WMT) is an omnichannel retailer operating retail and wholesale stores, clubs, e-commerce websites, and mobile applications. It offers an elaborate array of items, including fresh and organic food options, beverages, general merchandise, electronics, and more.
While we acknowledge the potential of WMT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WMT and that has 100x upside potential, check out our report about this cheapest AI stock.
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