Record Sales, Rising Tariffs: Can AVO Keep the Growth Flowing?

Mission Produce, Inc. AVO is riding a wave of strong sales momentum, but the operating backdrop is becoming more challenging. Strong consumer demand, expanding international reach and higher shipment volumes have pushed revenues higher, even as the global produce market grapples with rising tariffs, trade uncertainty and cost inflation. The contrast sets up a critical question for investors: Can AVO keep growth flowing when macro pressures threaten to squeeze margins and disrupt cross-border supply chains?

Revenue trends in fiscal 2025 show a clear and logical progression. Growth was exceptionally strong in the first half of fiscal 2025, with revenues up 29% in the first quarter and 28% in the second quarter, reflecting favorable market conditions and robust volume expansion. Growth then normalized in the back half, easing to 10% in the third quarter and holding steady at 10% in the fourth quarter. While the pace moderated, the consistency in double-digit growth suggests demand remained healthy even as pricing and market conditions became more challenging. The back-to-back revenue gains point to underlying demand strength and effective execution, suggesting growth is not purely price-led but volume-driven, an important distinction in a volatile pricing environment.

Looking ahead, sustaining this growth rate will depend on execution amid rising tariffs and cost pressures. AVO’s diversified sourcing network and vertically integrated model provide flexibility to manage supply shifts and protect per-unit margins. If the company can continue converting steady demand into disciplined, volume-led expansion, the recent moderation in revenues may represent normalization rather than a loss of momentum, keeping the growth story intact despite a tougher external environment.

Steady Growth Across Cycles: CTVA & DOLE’s Playbooks

Corteva, Inc. CTVA and Dole plc DOLE are pursuing resilient growth in volatile agricultural markets — one through innovation-led value creation, the other through scale-driven operational excellence.

Corteva’s growth strategy centers on consistency across cycles, using innovation to smooth volatility in agricultural demand. Rather than relying on acreage expansion alone, the company drives revenues through premium seed genetics, crop protection products and data-driven farming solutions that enhance yields and reduce input costs for growers. This diversified, value-focused approach allows Corteva to maintain steady growth and defend margins even when commodity pricing or farmer spending weakens.

Dole pursues a similar goal of steady, sustainable growth, but through operational execution and scale in fresh produce. By balancing volume growth across multiple fruit categories with supply-chain efficiency and cost discipline, the company can absorb pricing swings and seasonal disruptions. Dole’s integrated global network supports reliable delivery and consistent revenues, enabling the company to sustain growth in a market where volatility is the norm rather than the exception.

AVO’s Price Performance, Valuation & Estimates

Shares of Mission Produce have gained 9.3% in the last six months compared with the industry’s growth of 3.4%.

From a valuation standpoint, AVO trades at a forward price-to-earnings ratio of 21.20X, significantly above the industry’s average of 14.23X.

The Zacks Consensus Estimate for AVO’s fiscal 2026 earnings suggests a year-over-year decline of 10.13%, while that for fiscal 2027 indicates growth of 4.23%. The company’s EPS estimates for fiscal 2026 and 2027 have remained stable in the past seven days.

AVO stock currently carries a Zacks Rank #2 (Buy). 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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