3 Stocks to Buy for the Future of Vertical Farming


  • Vertical farming is becoming increasingly important and stocks in the sector could grow rapidly. 
  • Agrify (AGFY): The LED maker is volatile but growing, sort of.  
  • AppHarvest (APPH): AppHarvest is selling more high-tech, high-yield produce after opening a new network. 
  • Hydrofarm Holdings (HYFM): Hydrofarm Holdings is a survivor in a better position after a tough 2022. 
Vertical Farming Stocks - 3 Stocks to Buy for the Future of Vertical Farming

Source: HotFlash / Shutterstock.com

Finding the right vertical farming stocks means widening your gaze.

This rapidly growing field involves stacking crops in vertical layers, which offers significant benefits. As a result, vertical farming is seen as a promising solution to the challenges facing conventional agriculture

There are a number of publicly traded vertical farming stocks representing companies offer investors an opportunity to participate in this burgeoning industry.

These companies typically focus on developing innovative growing systems and technologies that are designed to optimize crop production and reduce costs. Other popular vertical farming stocks include companies that specialize in the production of vegetables and cannabis.

Overall, vertical farming stocks represent an interesting investment opportunity for those looking to invest in innovative and environmentally responsible companies.

AGFY Agrify  $0.41
APPH AppHarvest  $0.86
HYFM Hydrofarm Holdings  $2.06

Agrify (AGFY) 

bearded man tending kale crops in urban communal garden, AGFY Stock
Source: Joshua Resnick / Shutterstock.com

Agrify (NASDAQ:AGFY) stock represents a range of products designed to optimize crop production and increase efficiency.

Agrify stock is also squarely in the penny stock arena with a price of 40 cents currently.

There is positive news, though: Its shares carry a target price of $1.68 so investors do have a legitimate shot at multiplying their capital through AGFY shares. Improving EPS expectations over the past few months provide a reason to be hopeful that share prices will increase. 

The company sells LED grow lights and purifiers targeting the cannabis space. Agrify’s revenues increased through the first 9 months of 2022 from $34.58 million to $52.37 million.

Those impressive results were held in check by the fact that Q3 revenues declined by more than 50%. That volatility will harm or hurt investors but the potential is legitimate. 

AppHarvest (APPH) 

Rows of plants being farmed indoors
Source: Silga Bauge-Robezniece / Shutterstock.com

AppHarvest (NASDAQ:APPH) aims to revolutionize the way produce is grown and delivered to consumers, with a focus on using innovative technology and sustainable practices to create a more efficient and environmentally friendly food system.

The company went public via a SPAC merger in September 2021 and has since dramatically decreased in value. APPH shares currently trading below $1 with the potential to more than double based on target prices

AppHarvest develops and operates high-tech indoor farms that utilize robotics and AI. Those farms use up to 90% less water than open-field growing with yields 30 times greater than traditional agriculture.AppHarvest’s flagship Morehead, KY farm is the size of 50 football fields and produces tomatoes. 

The company continues to work toward starting operations at its four-farm network of 165 acres of other crops which were scheduled to open by the end of 2022. Those operations started shipping produce by mid-January. Sales nearly doubled through the first 9 months of 2022 YoY. 

Hydrofarm Holdings (HYFM)

Man works in a greenhouse hydrofarm nursery. HYFM stock.
Source: tong patong / Shutterstock

Hydrofarm Holdings (NASDAQ:HYFM) became publicly traded via a SPAC. It is a wholesaler and manufacturer of hydroponic equipment and supplies for indoor and greenhouse gardening.

HYFM is a penny stock with a significant upside. The company has been in operation for more than 40 years within the controlled environment agriculture space.

Hydrofarm Holdings experienced a weak Q3 with declining sales. The company currently expects between $340 to $347 million in 2022 revenues which it reiterated upon releasing Q3 earnings. 

Hydrofarm is hoping to capitalize on the picks and shovels gold rush across the cannabis space. If the company is correct, the overproduction that characterized 2022 will work through the market quickly. Future growth on further legalization means the company will be in a stronger position as a survivor after a difficult 2022. 

On the date of publication, Alex Sirois 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.

Article printed from InvestorPlace Media, https://investorplace.com/2023/02/agfy-apph-hyfm-3-vertical-farming-stocks-stocks-to-buy-for-the-future/.

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