Americold Realty Trust, Inc. (COLD): A Bull Case Theory

We came across a bullish thesis on Americold Realty Trust, Inc. on Nugget Capital Partners’s Substack. In this article, we will summarize the bulls’ thesis on COLD. Americold Realty Trust, Inc.'s share was trading at $10.99 as of December 1st. COLD’s forward P/E was 119.05 according to Yahoo Finance.

Americold Realty Trust (COLD), one of the two dominant cold storage REITs controlling nearly half of the U.S. market, is trading at a historic discount despite its strategic positioning in a niche, essential infrastructure segment. The sector has been pressured by cyclical weakness in food-related industries and soft consumer demand, which has caused lower storage volumes and weakened sentiment. Inventories have shown month-over-month increases, suggesting potential stabilization, though it remains to be seen if the industry is nearing a turning point. Occupancy is expected to rise into year-end as 2H inventories build, with forward guidance for 2026 likely serving as a key catalyst for sentiment recovery.

The collapse of Americold’s valuation multiple mirrors the broader cold storage REIT space, with both Americold and its peer Lineage trading at implied cap rates above 10%—a stark contrast to historical 5–6% transaction levels. This deep undervaluation reflects lingering concerns about overbuilding during the low-rate period and subsequent supply pressure, though new development has now slowed sharply amid higher interest rates. The potential resumption of agricultural trade between the U.S. and China, following recent indications of renewed soybean purchases, could serve as a near-term tailwind, given the sector’s sensitivity to global food flows.

As supply tightens and macro conditions gradually improve, Americold appears well positioned for a recovery in both occupancy and pricing power. With shares trading at a 30–40% discount to consensus NAV and an implied double-digit cap rate, COLD offers a compelling opportunity for investors with a 12–24 month horizon seeking asymmetric upside in a cyclical recovery.

Previously we covered a bullish thesis on STAG Industrial, Inc. (STAG) by Steve Wagner in May 2025, which highlighted its strong leasing spreads, disciplined capital allocation, and exposure to e-commerce growth. The company’s stock price has appreciated approximately by 15.65% since our coverage. This is because the thesis played out as fundamentals remained solid. Nugget Capital Partners shares a similar view but emphasizes Americold Realty Trust’s (COLD) cyclical undervaluation.

Americold Realty Trust, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held COLD at the end of the second quarter which was 33 in the previous quarter. While we acknowledge the potential of COLD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.