The Uptrend Center highlights Top 3 Food Stocks to buy during Russia-Ukraine War


London, UK — COVID-19 lockdown took a massive toll on the world’s economy, and the Russia-Ukraine war worsened the situation. Both Russia and Ukraine were among the biggest food exporters in the world, and the halt in those exports spiked the food inflation rates around the world to their highest record.

In developed economies like Europe, the CPI (Consumer Price Index) for food commodities experienced a significant rise in its largest economies. While in the United States, CPI rose to more than 14%. The developing world had a dramatic situation where prices for essential food items rose to extreme levels. The rising inflation rate of Lebanon is an example where the price index rose to more than 3000% as it was heavily dependent on food imports from Ukraine.

Due to Russia’s attack on Ukraine, the agricultural stock in Ukraine, meant to be exported, has been stuck as Russia has blockaded the Black Sea. Many countries relying on Ukraine and Russia for their wheat exports are facing severe food shortage consequences. For instance, Egypt relied on Ukraine and Russia for 80% of its wheat imports. Although it has made a deal with India to overcome the shortage, it does not seem promising. The blockade on Black Sea amid ban on Russian vessels has also halted Russian exports to the world.

Many countries have started to limit their food exports to overcome the food crisis and protect local markets. For instance, Indonesia banned its palm oil exports to protect its local supplies of cooking oil, which resulted in an extreme shortage of edible oil for the rest of the world, with prices reaching higher levels and adding to inflation.

Another alarming situation is the fertilizer crisis. The sky-rocketed prices of fertilizers have restricted farmers from harvesting their lands. This will only add up to a shortage of food supply in the coming years. The sanctions on Russia have played an important part in the rising prices of fertilizers.

Countries depending on food imports are at the highest risk of suffering from this food crisis. The poverty level is rising in such countries as people are forced to reduce meals due to high prices. Global financial markets are focused on the war, which has leveled up to fierce fighting. And investors are quite stirred by this inflation crisis.

However, food companies are getting a benefit from this food crisis in terms of demand and supply. As discussed above, the war has reduced the supply of food commodities, resulting in increased demand. This increased demand has put the world’s attention on the food companies to provide for both developed and developing economies. According to Bernadette Murphy, a stocks analyst at The Uptrend Center, it is a golden time for investors to invest in the food stocks as they hold great potential during the times of the Russia-Ukraine war.

Following are some food stock companies for investors to invest in 2022:

  1. Mondelez (MDLZ)
  2. General Mills (GIS)
  3. Hershey (HSY)
  4. Kraft Heinz (KHC)
  5. Tyson Foods (TSN)
  6. McCormick (MKC)
  7. Kellogg (K)
  8. Conagra Brands (CAG)
  9. Hormel Foods (HRL)
  10. J. M. Smucker (SJM)
  11. Campbell Soup (CPB)
  12. Lamb Weston (L.W.)

Top 3 Food Stocks to Invest in 2022

1. Hershey Co (HSY):

The Hershey Company, also known as Hershey’s, is a multinational company. Being one of the largest chocolate manufacturers in the world, it produces snacks, chocolate, and non-chocolate confectionery. It has two segments to operate through. The North American segment deals with the work in the United States and Canada. The International and Other segment is focused on operations areas other than North America. Jolly Rancher, Almond Joy, Cadbury, Kit Kat, Twizzlers, and Brookside are some of the brand names that Hershey’s uses to provide its products. Its products include chocolate, meat snacks, popcorn, cookies, mint refreshment products, pantry items, baked products, and beverages.

Hershey Co. was founded in 1894, with headquarters in Pennsylvania, U.S. The shares of this company are listed on New York Stock Exchange (NYSE) under the ticker HSY. Its current revenue is 9.34 Billion, with a market capitalization of $42.61 Billion. The price-to-earnings ratio (P/E) is 26.93, and the dividend yield is 3.604 (1.72%). During the past 1-year, the TRX shares have seen a positive growth of about 21.45%.

2. Tyson Foods Inc. (TSN):

Tyson Foods Inc. is a protein-based company that operates in the food industry. The company produces and markets chicken, beef, pork, and prepared foods. It is the second-largest producer of these foods in the industry. It produces various animal and plant-based foods, including Buffalo wings, chicken and vegetarian nuggets and tenders, and vegetarian burger patties. Tyson Foods Inc. supplies its products to Yum Brand Chains such as KFC, Taco Bell, McDonald’s, Burger King, Wendy’s, and Wal-Mart.

The company Tyson Foods Inc. was established in 1935 with headquarters in Springdale, Arkansas, U.S. The company’s current market capitalization is $31.42 billion, with 51.34 billion in revenues. The shares of this company are listed on New York Stock Exchange (NYSE) under the ticker TSN. The current price-to-earnings ratio (P/E) is 7.57, and the dividend yield is 1.84 (2.09%). During the past 1-year, the TSN shares have seen a positive growth of about 10.04%, proving that this stock can be a profitable investment decision in 2022.

3. Kellogg Company (K):

The Kellogg Company, commonly known as Kellogg’s, is a multinational food manufacturer. It produces and markets snacks, cereals, and convenience foods. Its primary products include crackers, savory snacks, cereal and granola bars, frozen waffles, veggie foods, noodles, and toaster pastries. These products are manufactured and commercialized in 180 countries. The company uses various brand names like Kellogg’s Pringles, Eggo, Cheez-It, Corn Flakes, and RXBAR. Broker and distributor arrangements are also adopted for certain market products by Kellogg Co.

Kellogg Company was established in 1906 with headquarters in Battle Creek, Michigan, United States.

The shares of Kellogg’s are listed on NYSE under the ticker symbol K. The company has a market capitalization of $22.89 Billion with revenues of $14.27 Billion. The current price-to-earnings ratio (P/E) is 15.37, and the dividend yield is 2.32 (3.36%). The Earnings per Share (EPS) is 4.49. Therefore, AVAV shares could be an outstanding investment opportunity for those looking to find some stocks to add to their portfolios in 2022.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.

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