Mission Produce: A Small-Cap Avocado Stock For The Short And Long Term

Akim Guerreiro
270 Followers
(13min)

Summary

  • Mission Produce, Inc. is a promising small-cap stock with strong short-term and long-term tailwinds, driven by rising avocado demand and supply constraints.
  • The company’s financials have significantly improved, with a double-digit revenue increase in 2024 and a shift from net loss to net income.
  • Mission Produce’s vertical integration and global sourcing capabilities make it resilient against trade wars and climate disruptions, ensuring stable supply and rising prices.
  • The planned 2025 capex and expansion into mangoes and blueberries are key growth catalysts, diversifying revenue and mitigating risks from avocado dependency.

Close-up of woman eating fresh and delicious poke bowl with chopsticks

alvarez/E+ via Getty Images

Investment Thesis

Mission Produce, Inc. (NASDAQ:AVO) is a relatively unknown small-cap stock of an international, vertically integrated avocado company that has both short-term and long-term tailwinds. Mexico being the largest avocado producer worldwide, and the US the

This article was written by

270 Followers
I am always on the lookout for strongly undervalued stocks, in the dirt and under the rocks. Following me will allow you to read about little known, forgotten and underrated stocks, in any geography and sector.My name is Akim and I am a professional portfolio manager for investment funds.I live in beautiful Luxembourg and graduated from a business major, having studied in France, in the U.S. and in Russia.My articles are completely independent. I am since early 2022 a Popular Investor on the brokerage platform eToro under the username @Etcaetera where my publicly available portfolio is displayed, showcasing my investment opinions and decisions. I like to cover stocks that I hold at the time of writing or that are in my watchlist.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in AVO over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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