Can the Blueberries Segment Accelerate Mission Produce's Growth?

Mission Produce, Inc.’s AVO avocado business remains the primary earnings driver, but the company's blueberries segment is steadily emerging as an important long-term growth platform. While near-term profitability has been affected by the maturation of newly planted acreage, management continues to…

Mission Produce, Inc.’s AVO avocado business remains the primary earnings driver, but the company's blueberries segment is steadily emerging as an important long-term growth platform. While near-term profitability has been affected by the maturation of newly planted acreage, management continues to invest in the business, viewing blueberries as both a standalone growth opportunity and a way to improve the utilization of its global farming and packing infrastructure. As production ramps and operating efficiencies improve, the segment could become a more meaningful contributor to Mission Produce's diversified growth strategy.

The business continues to demonstrate healthy underlying momentum despite temporary operational headwinds. In the fiscal first quarter, blueberries’ sales benefited from higher volumes and firmer pricing, although profitability was pressured by lower yields from newer farms that are still progressing toward full productivity. Management emphasized that these yield challenges are part of the normal development cycle and expects production efficiency and costs to improve as the acreage matures over the next several quarters. In the second quarter, stronger pricing more than offset elevated production costs, while leadership reiterated confidence in the segment's long-term direction and contribution to the broader business.

Beyond direct revenue growth, blueberries play a broader strategic role within Mission Produce's operating model. The company is using its Peruvian facilities to pack both owned and third-party blueberries while expanding capabilities to handle additional crops such as mangoes, improving year-round asset utilization and reducing seasonal volatility. Management believes these initiatives will strengthen operating leverage, enhance returns from its international farming assets and create a more diversified produce platform. As blueberry yields normalize and infrastructure utilization improves, the segment appears well positioned to become an increasingly meaningful driver of Mission Produce's long-term growth.

How CTVA & DOLE Are Shaping the Future of Global Agriculture

Innovation in crop technology and scale in fresh produce are helping Corteva, Inc. CTVA and Dole plc DOLE capitalize on long-term agricultural demand.

Corteva is one of the world's leading agricultural technology companies, focused on helping farmers improve crop productivity through advanced seed genetics, crop protection products and digital agriculture solutions. Its broad portfolio of corn, soybean and other seed brands, combined with a strong pipeline of biologicals and precision agriculture technologies, supports growers across diverse geographies. With extensive research capabilities, a global distribution network and a strong emphasis on innovation and sustainable farming, Corteva plays a critical role in enhancing agricultural yields and supporting long-term food security.

Dole is one of the world's largest producers and distributors of fresh fruits and vegetables, supplying retailers, wholesalers and foodservice customers across North America, Europe and other international markets. Its vertically integrated business spans farming, sourcing, packaging, shipping and distribution, enabling a reliable year-round supply across multiple produce categories, including bananas, pineapples, berries, avocados and fresh vegetables. Supported by its global sourcing network, operational scale and focus on fresh, healthy food, Dole is well positioned to benefit from rising consumer demand for nutritious produce and efficient supply chain execution.

AVO’s Price Performance, Valuation & Estimates

Shares of Mission Produce have lost 13.5% in the last three months compared with the industry’s drop of 0.8%.

From a valuation standpoint, AVO trades at a forward price-to-earnings ratio of 18.42X, significantly above the industry’s average of 15.48X.

The Zacks Consensus Estimate for AVO’s fiscal 2026 earnings suggests a year-over-year decline of 35.44%, while that for fiscal 2027 indicates growth of 66.7%. 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 #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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