2 Food Stocks to Buy Amid Heightened Market Volatility

Group 1: Dole (DOLE) - Dole is a leading producer of fresh bananas and pineapples, with a growing presence in berries, avocados, and organic produce [2] - Dole's stock has increased over 20% year to date, with a low beta ratio of 0.84, indicating lower volatility compared to the broader market [2][3] - The stock is currently priced at 15, with a forward earnings multiple of 13.2X, which is competitive compared to the S&P 500's 22.8X [3] - Annual earnings for Dole are expected to dip by 2% in fiscal 2024 but are projected to rebound by 19% in FY25 to 1.44 per share [4] - Dole offers a 2.01% annual dividend yield, and earnings estimate revisions have increased over 5% in the last 30 days for FY24 and FY25 [4] Group 2: Pilgrim's Pride (PPC) - Pilgrim's Pride is focused on producing value-added chicken products and has emphasized organic offerings, including non-antibiotic products [4] - The stock has surged over 60% year to date, with a beta ratio of 0.82, suggesting it is also less volatile than the market [5] - Pilgrim's stock trades at 9.4X forward earnings, significantly lower than the Zacks Food-Meat Products Industry average of 17.6X [5] - EPS is forecasted to increase by 183% this year to $4.79 per share, compared to$1.69 per share in 2023 [6] - EPS estimates for FY24 and FY25 have increased over 13% in the last 60 days, despite projected flat earnings next year [6] Group 3: Investment Outlook - Consumer food stocks like Dole and Pilgrim's Pride are considered defensive investments, making it a favorable time to buy shares due to increased profitability [8] - Both companies exhibit low beta measurements and attractive P/E valuations, supported by rising earnings estimate revisions [8]