Is COLD a good stock to buy? We came across a bullish thesis on Americold Realty Trust, Inc. on Compounding Dividends’s Substack by TJ Terwilliger. In this article, we will summarize the bulls’ thesis on COLD. Americold Realty Trust, Inc.’s share was trading at $11.33 as of March 24th. COLD’s forward P/E was 119.05 according to Yahoo Finance.
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Americold Realty Trust (COLD) is the world’s second-largest owner of temperature-controlled warehouses, a critical component of the global food supply chain. Operating over 230 facilities, it serves roughly 3,200 customers, including major food producers and retailers, with the top 25 clients accounting for over half of warehouse revenue. The company’s moat stems from its scale, network density, and production-advantaged sites, where 26% of facilities are physically attached to customer factories, creating high switching costs.
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Americold generates the bulk of its revenue through warehouse rent, storage, and specialized handling services like case-picking, protein repackaging, produce ripening, and blast freezing, stabilizing cash flow via 60% of revenue under fixed-commitment contracts.
North America contributes 78% of total revenue, with the remainder from Asia-Pacific, Europe, and South America. Under CEO Robert Chambers and CFO Chris Papa, the company has maintained consistent growth, delivering approximately 8% annual AFFO expansion and steadily raising dividends, which were increased 5% in January 2026.
Despite its leadership, Americold faces headwinds from oversupply in the warehouse market, soft demand due to inflation and reduced government benefits, rising labor and energy costs, and high debt levels characteristic of REITs, resulting in a share price of $12.10 and a dividend yield above 7%. Mitigation strategies include focusing on production-advantaged sites, investing in automation (Project Orion) to improve efficiency, and maintaining a balanced, largely fixed-rate debt profile.
The market for cold storage remains attractive, driven by essential food demand, outsourcing trends, and population growth, with projected annual growth of 6.8%. While near-term challenges have compressed valuations, Americold’s scale, sticky customer base, and diversified service offerings position it as a potentially compelling long-term investment, offering resilient cash flows and high entry yield for investors willing to navigate the current market dislocations.
Previously, we covered a bullish thesis on STAG Industrial, Inc. (STAG) by Steve Wagner in May 2025, which highlighted its strong industrial real estate platform, robust leasing spreads, and disciplined capital allocation. STAG’s stock price has appreciated by approximately 9.70% since our coverage. TJ Terwilliger shares a similar view but emphasizes Americold Realty Trust’s (COLD) scale, sticky customers, and high switching costs, positioning it as a resilient REIT.
Americold Realty Trust, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held COLD at the end of the fourth quarter which was 30 in the previous quarter. While we acknowledge the risk and potential of COLD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than COLD and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
