Mission Produce, Inc. AVO is benefiting from stronger avocado demand, increased scale and improved sourcing flexibility — all of which are supporting momentum in its Marketing and Distribution segment. In the third quarter of fiscal 2026, segment sales climbed to $414.3 million from $344.1 million a year earlier, while adjusted EBITDA increased to $24.7 million from $20 million. The improvement reflected higher avocado volumes, including contributions from the Calavo acquisition and growth in Mission Produce’s legacy business, partly offset by lower average selling prices.
Volume growth remains a major catalyst. Mission Produce sold roughly 253 million pounds of avocados during the quarter, up 38% year over year, driven by Calavo and higher legacy Mission volumes. Meanwhile, a more balanced sourcing mix across Mexico, California and Peru helped per-unit margins recover sequentially from the fiscal second quarter. The company’s multi-origin platform enables it to better match fruit sizes with customer demand and direct supply toward the most attractive markets and programs. Mission Produce also increased its estimated U.S. retail market share by about 60 basis points year to date, underscoring stronger customer relationships and execution.
The Calavo combination could further expand the unit’s growth runway. Added packing capacity in Mexico and California, broader fruit availability and complementary customer relationships are enabling Mission Produce to serve more customers for longer periods. Management is already seeing cross-selling collaboration across the combined sales organizations and believes the enlarged network can drive meaningful market-share gains between 2027 and 2030. Importantly, this opportunity is supported by greater scale and sourcing optionality rather than aggressive acquisition-led share gains, potentially strengthening both customer service and long-term profitability.
What’s Driving Growth at Corteva and Dole?
Corteva, Inc. CTVA gains from premium seed technologies and innovation, while Dole plc DOLE benefits from stronger fresh produce demand, volumes and pricing.
Corteva is benefiting from solid demand for differentiated seed technology, disciplined pricing and continued productivity gains. Seed remains supported by farmer adoption of higher-value technologies and favorable price/mix, while Crop Protection is gaining from demand for newer products and spinosyns. The company’s focus on portfolio improvement, innovation and cost discipline is also supporting profitability, helping offset pockets of volume pressure and creating a stronger foundation for sustained growth.
Dole’s growth is being fueled by strength across its Diversified Fresh Produce operations, particularly in the Americas & Rest of World business. Higher North American volumes, including healthy demand for kiwi and avocados, are supporting performance, alongside favorable seasonal contributions from cherries and better pricing in southern hemisphere export markets. Dole is also benefiting from resilient demand for fresh produce, supported by consumer interest in health and wellness, while ongoing investments and development initiatives provide additional avenues for longer-term expansion.
AVO’s Price Performance, Valuation & Estimates
Shares of Mission Produce have lost 3.6% in the last three months compared with the industry’s decline of 47.3%.
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From a valuation standpoint, AVO trades at a forward price-to-earnings ratio of 16.39X, well above the industry’s average of 7.89X.
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The Zacks Consensus Estimate for AVO’s fiscal 2026 earnings suggests a year-over-year decline of 17.7%, while that for fiscal 2027 indicates growth of 29.2%. The company’s EPS estimates for fiscal 2026 and 2027 have remained stable in the past seven days.
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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).