Mission Produce AVO has been benefiting from favorable avocado pricing trends, but the key question for investors is whether these higher prices can continue to fuel sustainable growth. While avocado prices remain an important earnings driver, the company's long-term outlook is increasingly supported by strong category demand, expanding household penetration and its diversified sourcing network. Management noted that consumer demand remained robust despite market volatility, reinforcing avocados' status as a resilient growth category with significant opportunities across the United States, Europe and Asia.
In second-quarter fiscal 2026, Mission Produce delivered 15% year-over-year growth in avocado volumes, even as revenues declined 24% to $290.9 million due to a 36% decrease in per-unit avocado selling prices from last year's elevated levels. Encouragingly, U.S. avocado consumption reached record highs during the quarter, with more than 1.6 million new households entering the category. Management also expects exportable avocado production from its Peru farms to rise 20% year over year to 120-130 million pounds, while the recently completed Calavo acquisition is projected to generate at least $25 million in annualized cost synergies within 18 months.
Although near-term results were pressured by an unusually high supply environment and temporary margin compression, management indicated that pricing and supply conditions have begun normalizing. The company expects margin improvement in the second half of fiscal 2026, supported by stronger contributions from Peru, stable demand trends and benefits from the Calavo integration. Therefore, while elevated avocado pricing alone may not sustain growth indefinitely, Mission Produce's expanding scale, operational efficiencies and healthy demand backdrop position it well to drive profitable growth beyond commodity price fluctuations.
Can Pricing and Demand Trends Sustain Growth for Corteva and Dole?
Strong seed adoption, innovation-led crop solutions and steady fresh produce demand are helping Corteva, Inc. CTVA and Dole plc DOLE for long-term growth.
Corteva continues to benefit from resilient demand for its seed and crop-protection portfolio, supported by strong farmer adoption of premium technologies and a robust innovation pipeline. The company has been gaining traction through products such as Enlist E3 soybeans and advanced biological solutions, helping it expand market share despite a challenging agricultural backdrop. With global food demand rising and growers increasingly focused on productivity-enhancing technologies, Corteva remains well positioned to capitalize on favorable long-term agricultural trends.
Dole is leveraging steady demand for fresh fruits and vegetables, along with improved pricing across several key categories, to support revenue and earnings growth. The company’s diversified global sourcing and distribution network enables it to navigate supply-chain challenges while meeting growing consumer demand for healthy and fresh food options. In addition, Dole continues to benefit from strategic investments in operational efficiency, value-added products and supply-chain optimization initiatives.
AVO’s Price Performance, Valuation & Estimates
Shares of Mission Produce have lost 5.3% in the last three months compared with the industry’s drop of 0.5%.
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From a valuation standpoint, AVO trades at a forward price-to-earnings ratio of 16.93X, above the industry’s average of 15.03X.
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The Zacks Consensus Estimate for AVO’s fiscal 2026 earnings suggests a year-over-year decline of 35.4%, while that for fiscal 2027 indicates growth of 66.7%. The company’s EPS estimates for fiscal 2026 have moved 23.8% downward, while the same for fiscal 2027 have increased 19.7% in the past seven days.
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AVO stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Dole PLC (DOLE): Free Stock Analysis Report
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Mission Produce, Inc. (AVO): Free Stock Analysis Report