Top Performing Vertical Farming Stocks

Some consider vertical farming to be the farming of the future. It’s exactly what it sounds like; instead of being grown in fields, plants are grown indoors in vertical stacks.

If you’re the type of investor who likes to support new technologies from the start, you might find that vertical farming stocks are right for you. 

Quick Look at the Top Performing Vertical Farming Stocks:

Deep Dive

Here are the best vertical farming investments you can make right now.

1. Scotts Miracle-Gro Co. (NYSE: SMG)

If you’ve spent any time gardening, you’re probably familiar with this iconic fertilizer. But you may not know that Scotts Miracle-Gro is branching out into the world of vertical farming. 

While it still produces fertilizer and related products, the business also has a majority stake in The Hawthorne Gardening Company. Founded in 2014, The Hawthorne Gardening Company manufactures hydroponic growing equipment.

Putting your money into individual stocks can be risky. The fact that Scotts is fairly diversified can make it a safer bet. For instance, if vertical farming doesn’t become as successful as predicted, fertilizer sales can still buoy the stock.

2. AppHarvest (NASDAQ: APPH)

AppHarvest is one of the most promising stocks in the world of agricultural technology. The company doesn’t just build vertical growing equipment but creates and maintains some of the largest indoor growing facilities in the world.

As more investors start to care about sustainability, AppHarvest may grow in popularity. Its unique farming system relies on recycled rainwater, and most of its facilities are powered by renewable resources. It’s a company and a stock to watch.

3. Hydrofarm Holdings Group Inc. (NASDAQ: HYFM)

This company doesn’t operate indoor farming facilities, but it sells just about everything you’d need to build one. Hydrofarm Holdings sells plant nutrition, growing lights and climate-control systems for vertical farming.

That product list might sound unremarkable at first. But HYFM is rapidly expanding to include an impressive variety of products. The diversity increases the likelihood of stable returns.

Hydrofarm Holdings focuses on the wholesale market, where it can supply farming equipment to a range of retailers. As vertical farming takes off, this stock may see considerable growth.

4. Kalera (OTCMKTS: KAL)

Leafy greens have plenty of benefits for your health. And investing in Kalera, a company that specializes in growing leafy greens, might have some benefits for your investment portfolio. 

Kalera boasts impressive geographical diversity. While it’s based in the United States, it has facilities around the world, including in the Middle East, Asia and Europe.

Thanks to its worldwide reach and commitment to growing healthy produce affordably and sustainably, Kalera has become a leader in the vertical farming world. It’s a stock that could be poised for growth.

5. Village Farms International Inc. (TSE: EFF)

Unlike most businesses on the list, it’s been around for a while — since 1987. Village Farms International Inc. has demonstrated an ability to change with the times, evolving to become a major producer of cucumbers, peppers and tomatoes.

Investors might be especially interested in a new transformation — EFF has expanded into the cannabis sector. Although the cannabis and farming industries share some similarities, they’re different enough to create diversification.

Pros

In most cases, vertical farming stocks are a great investment. Here are a few reasons why:

• The market isn’t saturated yet.
• Share prices may rise.
• As the demand for sustainable food grows, this sector should continue to expand.

Of course, whether an investment is right for you depends on your existing portfolio. A qualified investment adviser can help you make the right decisions for financial growth.

Where to Buy

Choosing which stocks to invest in is part of the picture. But to increase your chances of successful investing, you need to make sure you choose the right broker. Here are some Benzinga-approved brokers to choose from.

How to Choose

Investing in the vertical farming market is generally a good idea, but that doesn’t mean you should invest in the first company you find. Keep these factors in mind before investing.

Financial Health and Stability of the Farming Company

This step is important before you invest in any company. Look closely at each company’s earnings, cash flow and market cap. A return on your investment is never guaranteed. However, you’re much more likely to see profits if you invest in a financially healthy company.

Market Trends and Demand for Vertical Farming Products

Currently, it doesn’t look like the demand for vertical farming products is slowing down. But the stock market can be volatile, so it’s wise to do your own research before making a purchase. 

Following agricultural news is a great place to start. If demand continues to rise, these stocks are likely to be a smart investment. But if the sector’s momentum is slowing, you might want to reconsider.

Technology and Innovation Behind the Company's Operations

Vertical farming is an industry driven by technological innovations. And as the market becomes more saturated, the most innovative companies will be the ones that find success.

Take a look at each company you’re considering. Those that have technologically advanced the industry are more likely to have an edge over the competition. In contrast, companies that follow others’ lead may not be the first to adopt new and profitable technologies.

Company's Competitive Advantage and Differentiation in the Vertical Farming Industry

The vertical farming market isn’t saturated right now, but that doesn’t mean it won’t be eventually. As more companies join the market, it becomes more difficult for each farming company to stand out. 

When choosing an investment, look for a company that has an edge. It’s also helpful if the company is somewhat diversified.

Frequently Asked Questions