The Best Health Food Stocks To Buy In 2021

Eating is something we simply can’t live without doing, but unlike paying taxes, it’s something we actually enjoy! As time passes and knowledge and innovation set in, even the most basic parts of life are changing, and the food industry is seeing a massive change as we speak. 

These days, consumers are far more conscious of what they’re putting in their bodies when they take a bite. Healthy alternatives are quickly becoming the norm, and when any shift in any industry takes place, opportunities for investors begin to emerge. 

That’s exactly what’s happening in the food space. 

Health foods are seeing rapid adoption as consumers make an effort to live healthier, more fulfilling lives. Of course, as the shift in the industry continues, the potential to turn significant profits by choosing the right stocks in the space only grows. 

With that said, here are three companies that are taking health foods to the next level:

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Beyond Meat (BYND)

Most recently, Beyond Meat has joined the fray of meme stocks. The company has been hit hard by short sellers this year and the meme crowd is latching on. However, there’s likely much more to this than a short squeeze opportunity. 

Beyond Meat is focused on making plant-based meat the norm, solving two significant problems at once. First and foremost, diets heavy in red meats often lead to cardiovascular and other health concerns. Therefore, by producing meats that offer the same flavor, texture, and even look as these meats from plant matter, the company intends on offering a health alternative to products like burgers. 

On the other side of the coin, it’s also a go-green play. Recently, there’s been quite a bit of news surrounding the carbon emissions associated with cow farms, which can be alarming. In fact, according to Inside Climate News, for every gram of beef produced, about 221 grams of carbon dioxide are being released into the environment. 

As a result, Beyond Meat is scratching two itches. First, the environmentally conscious consumer is more likely to take advantage of the company’s products in order to make an environmental impact while the health-conscious consumer looks to these products to enjoy flavors they love without the health concerns associated with them. 

All in all, it’s paying off for the company. Lately, we’ve seen a rapid expansion into the global marketplace. In fact, the company even opened a new production facility in China. Moreover, as demand increases, Beyond Meat is working on technology that will allow it to scale up while reducing end-user prices. In fact, by 2024, the company expects for its plant-based meat products to cost less than traditional meat products, which is likely to lead to even wider spread consumer adoption. 

All told, as the world continues to look for health food alternatives to their favorites, and Beyond Meat works to not only provide them, but provide them at a discount to traditional option pricing, the potential for growth in BYND stock is hard to ignore. 

Nightfood (NGTF)

At the moment, Nightfood is a relatively small, budding company, but the company is already making a compelling difference in the way consumers eat, which is likely to prove to be an overwhelmingly profitable endeavor. 

The company is working to provide a solution to a primal instinct that works against us, the desire for fats, salts, and sweets at night. More and more consumers are becoming aware of the fact that in today’s world of excessively available calories, night time snacking is an unhealthy desire, yet, due to the way we’re wired, cravings tend to get the better of us. 

Nightfood is changing that by providing a way to cure the craving without the detrimental effects on our health. To do so, the company has developed ice cream that’s specifically formulated to cure the craving with the fewest possible calories and the added benefit of a better night’s sleep. 

This creates a massive opportunity for the company. After all, the nighttime snacking industry is a massive one, with Americans spending about a billion dollars a week on their favorite midnight snacks. 

In fact, the opportunities in the space are so large that massive brands like Unilever are piling millions of dollars into research on how to produce snacks that promote a good night’s sleep while maintaining a healthy lifestyle. 

The good news for Nightfood is that it’s years ahead of the curve. Not only has the company done the research and formulated the products, it has made it into big box retail, with products sold in more than 1,000 Walmart locations across the country. Not to mention, the company’s products can be found in Harris Teeter, a health food store owned and operated by Kroger, as well as Albertsons’ Jewel stores. 

At the same time, the company has received several accolades, even becoming the official ice cream of the American Pregnancy Association. 

All in all, Nightfood is making waves in the snacking industry, tapping into a multi-billion dollar opportunity that the big players in snacking seem to just recently noticing. Not only does that outline a path to significant revenue, it points to the potential of an acquisition of the company by one of the big players that wants a head start in the race. All in all, NGTF stock is an opportunity worth paying close attention to. 

Sprouts Farmers Market (SFM)

Last, but certainly not least, we have Sprouts Farmers Market. The company operates a grocery store chain that’s dedicated to providing healthy, fresh foods to consumers at reasonable prices. The company’s locations offer a farmer’s market-like experience featuring not only fresh produce, but other healthy foods, and even a vast vitamin and mineral section. 

Importantly, the company has seen significant revenue growth over the past five years, but there has been one issue. Profitability is still a concern, which has led the company to move in a relatively horizontal fashion. 

Nonetheless, that seems like it’s going to change, and the change is going to happen quickly. Recently, Jack Sinclair, a grocery expert with more than 35 years of experience has stepped in as the company’s CEO, and he’s making big changes. 

While Sinclair wants to keep the farmer’s market feel and low prices, he wants to do so while reducing cost and increasing profitability; something the previous CEO seemed incapable of accomplishing. 

To do so, Sinclair is launching new locations with anywhere from 5,000 to 9,000 less square feet, reducing the cost of the launch but maintaining expectations on store sales. Moreover, the company has ditched its old marketing model of launching newspaper and other print ads and moved into the digital advertising space, which seems to be driving more consumers into their stores at a lower cost. 

As Sinclair continues to revise the company’s activities, cutting costs and improving profitability, the opportunity only grows, making SFM stock yet another for the watchlist.  

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The Bottom Line

The bottom line here is that more and more consumers are opting for health alternatives to their favorite meals, snacks, and even shopping experiences, and this evolution in how we do things is creating major opportunities. The three companies listed above seem to be leading the charge, making them compelling investments to consider. 

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CNA Finance is not a financial advisor or broker/dealer. This article is for entertainment and information purposes and not a solicitation to buy or sell securities. This article is the result of a monetary relationship between Nightfood and CNA Finance under which Nightfood pays CNA Finance a monthly retainer. The article above was written by Joshua Rodriguez and outlines his honest opinion of the company. Nightfood had no involvement in the development, or editing of this article. Trading in penny stocks can lead to potentially significant losses.