- AppHarvest’s (APPH) vision of increased productivity and sales is bearing fruit in 2022.
- At the same time, the APPH stock price continues to plumb new 52-week lows.
- Investors should plant a seed with AppHarvest by picking up a few shares and hopefully watching them grow over time.
Based in Kentucky, AppHarvest (NASDAQ:APPH) develops and operates indoor farms. This might sound like an unusual business to invest in, but APPH stock appears to have strong upside potential at its current price.
Perhaps you’ve never considered investing in an agricultural technology company before. Also, you may be hesitant to buy a stock that’s testing fresh lows. These are understandable concerns.
Yet, a deep dive into AppHarvest might convince you give an unusual investment opportunity a try. This is a truly unique business that’s making the world more sustainable, and could soon be profitable.
What’s Happening with APPH Stock?
AppHarvest CEO Jonathan Webb isn’t your run-of-the-mill company executive. In a recent interview, Webb made it crystal-clear he’s prepared to disrupt modern agriculture with tech-enhanced, yet sustainable farming methodologies.
He also provided a snapshot of an ag-tech business in fast expansion mode. “We’ll have four farms open at the end of the year … nearly 8 million square feet of growing area across strawberries, salad greens, and a whole host of variety of tomatoes,” Webb boasted.
Those are impressive stats, but they apparently haven’t helped AppHarvest’s investors much. Down from a 52-week high of $20.22, APPH stock recently touched $2.60, near the bottom of its range.
Somehow, the investing community isn’t impressed by AppHarvest’s plan to open not just one, but three tech-enhanced indoor farms in Kentucky this year. Webb expects these farms will speed up sales growth, enable the company to “become financially self-sufficient,” and attract new investment capital.
A Lot More Tomatoes
Delving even deeper into AppHarvest’s business, we can glance at the company’s first-quarter 2022 results to see how this ag-tech disruptor is faring.
Impressively, the company delivered net sales of $5.2 million for the quarter. That’s up roughly 125% on a year-over-year basis.
Plus, if you don’t mind using tomato sales as a metric, check this out. In Q1 of 2022, AppHarvest sold a whopping 6.9 million pounds of tomatoes. That’s a whole lot more tomatoes than the 3.8 million pounds sold in the prior-year quarter.
Perhaps best of all, though, is that AppHarvest reiterated its full-year 2022 net sales outlook of $24 to $32 million. That would be more than double 2021’s net sales for the company.
What You Can Do Now With APPH Stock
Webb’s company isn’t profitable yet, but this could change in the coming quarters. In the meantime, it’s encouraging to witness AppHarvest grow its revenue (and its tomato sales, too.)
While APPH stock is still very cheap, it’s not a bad idea to grab a few shares as a speculative bet. In the age of modern agriculture technology, you just never know where AppHarvest will plant its roots next.
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On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.