In this article, we will look at the 12 Best Food Stocks to Buy Under $30.
Consumer Defensive Sector: Trends and Outlook
On April 25, Shana Sissel, Founder & CEO of Banrion Capital Mgmt, appeared on CNBC to talk about the struggles in the consumer staple sector and investor caution due to tariffs and “Trump exhaustion.” She said the consumer defensive stocks are going on a downward trend, which makes sense to her, especially if you look at how the market’s momentum flows. The concern about a recession and potential economic downturn might be too aggressive. She opined that she wouldn’t take it as much of a point right now because even if we are going to see any economic slowdown from tariffs, one thing is certain: consumers do not tend to cut back on staples. The sector includes the types of companies and consumer goods that people cannot and will not live without.
However, even in this sector, there are some unusual economic indicators that may reflect signs of an economic recession. This includes the snack indicator, where people tend to cut back on snacks in tough times instead of staple food items and other more essential nutrition types. While this is something to keep in mind about the sector, Sissel said that how the consumer staples are performing reflects the momentum swing we have seen in the market. The outlook is, of course, concerning, as it is necessary to look at how people are thinking about the market conditions and the effects of tariff impacts.
JP Morgan also recently gave a market outlook amid tariffs, saying that the market is very bearish, especially in the macro community. It further said that:
“Most are disregarding the latest trade developments, partly due to ‘Trump exhaustion.’ We observe that many prefer to stay in cash and maintain lower leverage in their books.”
Talking about this outlook, Sissel said that one of the triggers that one must look out for a potential change in sentiment is the fact that there is a contrarian sentiment, where we have seen a lot of investors buying the dip. A whole generation of investors has learned to buy the dip because, most of the time, the market recovers quickly.
She also said that the Trump exhaustion appears to be very real, as continuous policy changes have created uncertainty in the market, especially regarding tariffs. While it looks like things are calming down, investors are going to be cautious about jumping in too quickly because of the continuous policy changes. She thus opined that we might see cash staying on the sideline a little bit longer, which meant that we have not seen enough change to indicate that any market gains we are seeing right now are sustainable.
READ ALSO: Top 11 Small Cap Stocks to Buy with Biggest Upside Potential and 10 Best Stocks That Will Always Grow.
Is The Food Sector a Stable Place to Invest?
We discussed whether consumer staples are a stable area to invest in now, along with what the food sector is looking like right now, in a recently published article on Recession Resistant Investing: 10 Best Grocery Stocks To Buy Now. Here is an excerpt from the article:
On April 24, Bryan Spillane, BofA Securities senior consumer analyst, appeared on CNBC’s ‘The Exchange’ to talk about food stocks and how higher costs are weighing on consumers. He said that the biggest incremental headline right now is that costs are a bigger risk than anticipated going into the recent earnings season. Although there is a lot of focus on revenue risk, costs have taken the lead, and tariff risks are also affecting companies across the consumer staples industry.
Companies are sending marketing messages to consumers saying that they won’t be raising prices, which is something consumers didn’t see during COVID-19. These trends are raising concerns about margin pressures across corporate America. Addressing these questions, Spillane said these companies no longer have the ability to price. If there are incremental costs, whether from tariffs or other sources, they will either come from additional cost-cutting or result in margin pressure. Margin pressure is materializing in some major companies in the consumer staples sector, and it is likely to persist into the next quarter as well.
These trends raise the question of whether consumer staples are an area of stability amid current market volatility and macroeconomic concerns. Spillane said that this is a very similar dynamic to what we have seen in the last month or so, which is that the stocks have held in relatively well, even though earnings estimates have come down.
He further said that we have to be very selective from here onwards. Consumer staple companies that do not have negative earnings revision risks are a decent place to hide amid the current market dynamics. However, he warned that the fundamentals are decelerating for the consumer staple companies. These stocks are likely to remain under pressure if market fundamentals continue the way they are.
With these trends in view, lets look at the best food stocks to buy under $30.
A busy restaurant kitchen with a chef and staff rhythmically preparing food for delivery orders.
Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a list of 40 food stocks under $30 and chose the top 12 with the highest number of hedge fund holders as of Q4 2024. We sourced the hedge fund data from Insider Monkey’s database. The list is presented in ascending order of hedge fund sentiment.
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 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
12 Best Food Stocks To Buy Under $30
12. Calavo Growers, Inc. (NASDAQ:CVGW)
Stock Price: $27.16
Number of Hedge Fund Holders: 22
Calavo Growers, Inc. (NASDAQ:CVGW) markets and distributes fresh and prepared avocados globally. The company operates in two segments: Prepared and Grown. The Grown segment comprises fresh avocados, papayas, and tomatoes. The Prepared segment manages guacamole products and avocado pulp.
On April 16, Lake Street analyst Ben Klieve maintained a Buy rating on Calavo Growers, Inc. (NASDAQ:CVGW), setting a price target of $35.00. The company has amassed positive investor sentiment through its strong fiscal Q1 2025 results, with revenue reaching $154.39 million. Its fiscal Q1 2025 results reflect the strong Q1 adjusted net income performance it has delivered since 2019, ranking Calavo Growers, Inc. (NASDAQ:CVGW) 12th on our list of the best food stocks under $30.
The company’s segments also have sound operations. The Fresh segment reported a 24% growth in sales, while overall net sales rose around 21% year-over-year. The growth was attributed to Calavo Growers, Inc.’s (NASDAQ:CVGW) strategic focus on operational efficiency and margin improvement.
11. Mission Produce, Inc. (NASDAQ:AVO)
Stock Price: $10.53
Number of Hedge Fund Holders: 22
Mission Produce, Inc. (NASDAQ:AVO) specializes in farming, marketing, packing, and distributing avocados. Its operations are divided into three segments: Marketing and Distribution, International Farming, and Blueberries. Its Blueberries segment manages a farming operation that cultivates blueberry plants in Peru.
Its fiscal Q1 2025 results showed strong operations, with total revenue growing 29% to $334.2 million compared to the same period last year. Mission Produce, Inc. (NASDAQ:AVO) reported net income of $3.9 million compared to $0.0 million last year, while gross profit increased $2.8 million to $31.5 million.
The company recently announced the inauguration of a state-of-the-art packinghouse in Guatemala, which expands its vertically integrated global sourcing network to deliver avocados to the global market all year round, marking a significant milestone in its operations.
Mission Produce, Inc. (NASDAQ:AVO) has a competitive market edge because of its strong integrated business, which allows it to seamlessly transition between regions and maintain a consistent customer supply. The company also has a comprehensive sourcing network, which helps it maintain a reliable supply even during disruptions. Analysts are thus bullish on the stock, and its median price target of $10.53 implies an upside of 61.44% from current levels.
10. Dole plc (NYSE:DOLE)
Stock Price: $14.97
Number of Hedge Fund Holders: 22
Dole plc (NYSE:DOLE) distributes and markets fresh vegetables and fruits. The company operates through the Fresh Fruit, Diversified Fresh Produce –EMEA, Diversified Fresh Produce – Americas and ROW, and Fresh Vegetables segments. It ranks tenth on our list of the best food stocks to invest in under $30.
On May 1, the company announced the successful $1.2 billion refinancing of its credit facilities. This occurred through an Amended and Restated Credit Agreement introducing new senior secured facilities, including term loans totaling $600 million and a $600 million revolving credit facility. These facilities aim to support Dole plc’s (NYSE:DOLE) working capital and general corporate purposes, as well as refinance existing debt. The refinancing is anticipated to bolster the company’s financial flexibility and strengthen its market position by securing long-term financing with favorable terms.
Analysts are also bullish on the stock because of its strong 2024 performance. The company continued its solid growth trend over the last number of years and exceeded its most recent adjusted EBITDA guidance by around $12 million. Dole plc (NYSE:DOLE) grew organically in 2024, while its Group revenue and adjusted EBITDA rose on a like-for-like basis, supported by growth across its core business areas and categories. It expects to continue this growth in 2025, reflecting confidence in its operations.
9. Nomad Foods Limited (NYSE:NOMD)
Stock Price: $20.13
Number of Hedge Fund Holders: 27
Nomad Foods Limited (NYSE:NOMD) is a frozen food company that sells pizza, poultry, meat, fish, vegetables, and ice cream under the Birds Eye, Ledo, Frikom, iglo, and Findus brands. It manufactures and distributes its products in over 16 European countries.
On April 24, Jefferies analyst Robert Dickerson reiterated a Buy rating on Nomad Foods Limited (NYSE:NOMD) and set a price target of $25.00. 2024 marked the ninth consecutive year of record-high net sales and adjusted EBITDA for the company. Its full-year adjusted EPS reached €1.78, and the company has raised its full-year 2025 adjusted EPS guidance to €1.85-€1.89. This reflects continued confidence in its growth trajectory.
For the full year, the company reported a 1.8% rise in reported revenue to €3.1 billion, while adjusted EBITDA rose by 5.6% to €565 million. Nomad Foods Limited’s (NYSE:NOMD) performance in fiscal Q4 2024 also showed a 4.3% growth in reported revenue to €793 million, with organic revenue growth of 3.1% and volume growth of 4.7%.
The company plans to maintain its growth momentum in 2025, with organic revenue growth of 1%-3% and adjusted EBITDA growth of 2%- 4%. Management is confident about Nomad Foods Limited’s (NYSE:NOMD) potential to deliver a tenth consecutive year of sales and adjusted EBITDA growth, supported by strategic investments and strong cash generation.
8. Herbalife Ltd. (NYSE:HLF)
Stock Price: $7.32
Number of Hedge Fund Holders: 28
Herbalife Ltd. (NYSE:HLF) is a global nutrition company that offers protein shakes, meal replacements such as soups and bars, high-protein snacks, teas, sports nutrition, and vitamins and supplements. Herbalife Ltd. (NYSE:HLF) also manages a portfolio of dietary supplements, which includes solutions for digestive health, heart health, immunity, and more. The company sells its products in around 95 markets across the globe.
The company reported net sales worth $1.2 billion in fiscal Q1 2025, with a constant currency growth of 1.4% year-over-year, excluding foreign exchange headwinds. This makes fiscal Q1 2025 the second consecutive quarter of year-over-year growth, which reflects Herbalife Ltd.’s (NYSE:HLF) resilience. The company also experienced a 16% year-over-year growth in the number of new distributors joining it, marking the fourth consecutive quarter of growth and highlighting its initiatives to continuously enhance its market reach and expand its distributor base.
Herbalife Ltd.’s (NYSE:HLF) strategic acquisition of assets from Pro2col Health LLC, Pruvit Ventures, Inc., and Link BioSciences Inc. are anticipated to bolster its distributor tools and product offerings, further supporting its growth strategy.
7. United Natural Foods, Inc. (NYSE:UNFI)
Stock Price: $26.81
Number of Hedge Fund Holders: 28
United Natural Foods, Inc. (NYSE:UNFI) distributes organic, natural, and specialty food and non-food items. Its offerings include food and non-food, perishables, frozen, bulk, supplements, and more. The company conducts operations through the Retail, Wholesale, and Other segment.
On March 12, CL King analyst Andrew Wolf upgraded United Natural Foods, Inc. (NYSE:UNFI) to Buy from Neutral with a $33 price target, noting that its fiscal Q2 2025 results “beat solidly.” The company raised its guidance; thus, the analyst raised the firm’s estimates “accordingly.”
United Natural Foods, Inc. (NYSE:UNFI) reported a 4.9% growth in its net sales in fiscal Q2 2025 compared to the same period last year, reaching $8.2 billion. It underwent a notable 13.3% growth in adjusted EBITDA to $145 million, while adjusted EPS reached $0.22. The company’s free cash also improved significantly, undergoing an increase of approximately $77 million compared to the prior-year quarter. This growth was attributed to United Natural Foods, Inc.’s (NYSE:UNFI) strategic focus on stakeholder value creation and lean management. Analysts are thus bullish on the stock, ranking it seventh on our list of the best food stocks to invest in under $30.
6. Flowers Foods, Inc. (NYSE:FLO)
Stock Price: $17.53
Number of Hedge Fund Holders: 30
Flowers Foods, Inc. (NYSE:FLO) produces and markets packaged bakery foods in the US, such as buns, breads, bagels, tortillas, English muffins, and snack items. It has an elaborate brand portfolio, including Wonder, Tastykake, Nature’s Own, Dave’s Killer Bread (DKB), and more. The company takes the sixth spot on our list of the best food stocks to buy now under $30.
On February 21, 2025, Flowers Foods, Inc. (NYSE:FLO) announced the $795 million acquisition of Purposeful Foods Holdings, Inc., the parent company of Simple Mills. The acquisition is expected to enhance the company’s presence in the snacking and better-for-you segments, improve its growth and margin prospects, and diversify its category exposure.
Flowers Foods, Inc. (NYSE:FLO) is also operating soundly, with its net income growing 20.9% in fiscal Q4 2024 to $43.1 million, representing 3.9% of sales, a 70-basis point increase. This growth was attributed to higher operating income resulting from the optimization of its non-retail business, moderating ingredient costs, decrease in asset impairment, and cost-saving initiatives taken by the company. The company also grew its adjusted net income by 8.7%, while adjusted EBITDA rose 6.3%.
The company expects to continue its growth momentum in fiscal 2025. H1 2025 is anticipated to benefit from moderating commodity costs, savings, and price initiatives, as well as the carryover of new business wins.
5. Hormel Foods Corporation (NYSE:HRL)
Stock Price: $29.31
Number of Hedge Fund Holders: 31
Hormel Foods Corporation (NYSE:HRL) manufactures and markets branded food products. Its operations are divided into Retail, Foodservice, and International segments. In a report released on April 14, Benjamin Theurer from Barclays maintained a buy rating for the company and set a price target of $36.00.
On April 19, Hormel Foods Corporation (NYSE:HRL) received an upgrade from analyst Peter Galbo from BofA, who moved the company from Underperform to Neutral with a $35 price target, up from $29. The rating upgrade was supported by improved fundamentals in the company’s Jennie-O Turkey segment and its cost-saving program named “Transformation & Modernization.” Hormel Foods Corporation’s (NYSE:HRL) pork business is also performing well, benefiting from stable input costs and strong protein demand, which are bringing a positive light to its operations.
Its fiscal Q1 2025 results also show progress across key priorities, with net sales of $2.99 billion, operating income of $228 million, and organic net sales growing 1%. Hormel Foods Corporation (NYSE:HRL) also saw volume growth and share gains in flagship and rising brands in its retail category, while Foodservice underwent broad-based growth across various categories, especially its premium offerings. These trends reflect confidence in the company’s operations, positioning it on track to deliver its 2025 expectations.
4. Conagra Brands, Inc. (NYSE:CAG)
Stock Price: $23.86
Number of Hedge Fund Holders: 32
Conagra Brands, Inc. (NYSE:CAG) is a consumer-packaged goods food company that operates in three segments: Grocery & Snacks, Refrigerated & Frozen, and International. Its brand portfolio encompasses Birds Eye, Duncan Hines, Healthy Choice, Marie Callender’s, Reddi-wip, and BOOMCHICKAPOP. It is the fourth best food stock to buy under $30.
On May 2, Barclays analyst Andrew Lazar maintained a Buy rating on Conagra Brands, Inc. (NYSE:CAG) and set a price target of $29.00. With consumer lifestyles continuing to evolve, a strong demand for convenient, high-quality frozen meals and snacks is expected. Conagra Brands, Inc. (NYSE:CAG) is expected to capitalize on this trend as it focuses on product innovation, mainly in healthier options, plant-based alternatives, and premium offerings.
While shipments lagged consumption in fiscal Q3 2025 primarily because of discrete supply chain concerns, Conagra Brands, Inc. (NYSE:CAG) is making progress in improving customer service levels and restoring its inventory. Its fiscal 2025 guidance remains unchanged, reflecting confidence in the company’s future operations.
3. Grocery Outlet Holding Corp. (NASDAQ:GO)
Stock Price: $16.48
Number of Hedge Fund Holders: 33
Grocery Outlet Holding Corp. (NASDAQ:GO) sells fresh food products and name-brand consumables through an elaborate network of independently operated stores. Its products include fresh meat and seafood, staples, refrigerated and frozen food, and other items. The company takes the third spot on our list of the top food stocks to invest in under $30.
On May 1, analyst Corey Tarlowe from Jefferies maintained a Buy rating on Grocery Outlet Holding Corp. (NASDAQ:GO) and increased the price target to $20.00 from $18.00. The analyst said that the company’s potential for strong performance supports the optimistic sentiment, as its defensive nature positions it well to outperform in economic turbulences. Key improvements in its ordering systems and technology are expected to drive same-store sales and adjusted EBITDA margins, highlighting a positive outlook for its financial performance.
The analyst also noted that Grocery Outlet Holding Corp.’s (NASDAQ:GO) traffic trends are better than expected, supported by the value it offers compared to its competitors. The company has a solid business model and sourcing flexibility that can reduce the effects of tariffs, supporting growth prospects. In addition, management is addressing operational issues, which may result in higher EPS and improved results in the future.
2. The Kraft Heinz Company (NASDAQ:KHC)
Stock Price: $28.64
Number of Hedge Fund Holders: 43
The Kraft Heinz Company (NASDAQ:KHC) is one of the best food stocks to buy under $30. The company manufactures and distributes packaged food and beverages worldwide. Its offerings include cheese and dairy products, meals, tomato products, condiments, meats, sauces, refreshment beverages, and more. Its geographical segments of operation include North America and International Developed Markets.
Although The Kraft Heinz Company (NASDAQ:KHC) is experiencing growing market pressure, it delivered robust cash flow performance in fiscal Q1 2025 and maintained a healthy balance sheet. Investors are optimistic about the stock’s performance because of this financial stability, which shows its ability to manage its resources effectively amid challenging conditions.
The Kraft Heinz Company (NASDAQ:KHC) is also scaling its brand growth system and plans to cover 40% of its business by the end of 2025, a notable expansion from 10% in 2024. The initiative aims to drive brand growth and superiority, reflecting the company’s strategic focus on bolstering its market position.
1. Albertsons Companies, Inc. (NYSE:ACI)
Stock Price: $21.93
Number of Hedge Fund Holders: 70
Albertsons Companies, Inc. (NYSE:ACI) is a US-based food and drug retailer. It has over 2,269 stores across 34 states and the District of Columbia under 20 banners, including Star Market, Shaw’s, Albertsons, Kings Food Markets, United Supermarkets, Haggen, Kings Food Markets, Acme, Carrs, and more.
In a report released on May 2, Kenneth Goldman from J.P. Morgan maintained a Buy rating on Albertsons Companies, Inc. (NYSE:ACI) and set a price target of $31.00. While the company is likely to continue experiencing margin pressures due to its ongoing investments in customer experience, value, and digital investments, they are expected to affect short-term upside only, according to Robert Ohmes, an analyst from Bank of America Securities.
The analyst said they the investments will position Albertsons Companies, Inc. (NYSE:ACI) well for long-term growth. He also highlighted that the company’s fiscal Q4 2024 adjusted EPS surpassed expectations, with pharmacy and digital sales experiencing notable growth.
Other factors also bring a bullish light to the company’s operations, such as the 10% growth of its total revenue in 2024 over 2023. Albertsons Companies, Inc.’s (NYSE:ACI) loyalty membership also increased significantly by over 15% year-over-year, reaching more than 45 million members. Longleaf Partners Fund was also bullish on Albertsons Companies, Inc. (NYSE:ACI) and said the following in its Q1 2025 investor letter:
“Albertsons Companies, Inc. (NYSE:ACI) – US grocery retailer Albertsons was a contributor for the quarter. Albertsons was a new purchase in 2024, after we had followed the company and its predecessors for years. In an otherwise turbulent quarter, Albertsons stands out as a stable business that remains undervalued because it had fallen off the radar during a protracted deal process with Kroger that ultimately failed. The company should grow at a moderate pace and has plenty of financial firepower to repurchase shares, all while it has multiple strategic options (such as unlocking its real estate value and/or selling non-core markets) to realize value per share.”
Overall, ACI ranks first among the best food stocks to buy under $30. While we acknowledge the potential of food stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ACI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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