Is Mission Produce Ready to Deliver on Global Sourcing Hopes?

Mission Produce, Inc. AVO is positioning itself as more than just an avocado giant. With record second-quarter fiscal 2025 revenues of $380.3 million, up 28% year over year, the company has showcased how its global sourcing and distribution capabilities are paying off. By leaning on a network of growers across Mexico, California, Peru and beyond, Mission Produce has proven that it can navigate pricing swings, seasonal dynamics and even trade disruptions while maintaining steady supply and quality for its customers.

A closer look reveals that Mission Produce’s strategy extends well beyond avocados. The company is leveraging its sourcing, ripening and logistics expertise to expand into complementary fruits like mangos and blueberries, both of which are showing promising growth. Mango volumes hit records, with Mission Produce climbing to become the second-largest distributor in the United States, while blueberry expansion in Latin America is creating year-round capacity. These moves highlight how AVO’s diversified sourcing strategy is not just about resilience; it is about capturing new consumer demand and maximizing utilization of its global infrastructure.

Mission Produce’s international farming investments, particularly in Peru, will be a key test. Last year’s weather-hit harvest cut avocado production by 60%, but orchards have rebounded, with expectations of a 150% volume increase this season. If the company can continue to balance supply across regions while scaling its newer categories, it stands to solidify its reputation as a reliable global produce partner. In essence, Mission Produce’s ability to deliver on its global sourcing hopes will hinge on sustaining quality, expanding customer penetration and keeping pace with shifting consumer trends toward healthy, fresh fruit.

AVO Faces Stiff Competition From CVGW & FDP

Calavo Growers, Inc. CVGW and Fresh Del Monte Produce Inc. FDP are two prominent competitors in the fresh produce industry, each capitalizing on unique strategic strengths to maintain market presence and drive growth.

Calavo is sharpening its global sourcing playbook strategy, building on its established avocado base while expanding its produce portfolio to meet evolving consumer preferences. By leaning into its distribution network and value-added operations, the company is seeking to mitigate the volatility of crop cycles and pricing swings. Calavo’s ability to integrate supply from multiple regions positions it to deliver consistency to retailers and foodservice customers, a critical test as demand for fresh and convenient produce continues to rise.

Fresh Del Monte brings a diversified basket of fruits and vegetables to the global market, underpinned by vertically integrated farming and expansive shipping capabilities. Its reach across bananas, pineapples, melons and more gives the company resilience and scale, while its shipping fleet strengthens control over supply chains in a complex trade environment. FDP’s challenge and opportunity lie in aligning its broad infrastructure with shifting consumer demand for freshness and sustainability, as it aims to reinforce its standing as a reliable produce partner worldwide.

AVO’s Price Performance, Valuation & Estimates

Shares of Mission Produce have gained 19.3% in the last three months compared with the industry’s growth of 7.7%.

From a valuation standpoint, AVO trades at a forward price-to-earnings ratio of 25.64X, significantly above the industry’s average of 15.30X.

The Zacks Consensus Estimate for AVO’s fiscal 2025 and 2026 earnings suggests a year-over-year decline of 20.3% for both years. The estimates for fiscal 2025 and 2026 have been unchanged in the past seven days.

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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This article originally published on Zacks Investment Research (zacks.com).

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