From Yahoo Finance: 2025-04-08 18:02:00

The global hydroponics market is expected to reach $25.1 billion by 2027, while the vertical farming industry is forecasted to grow to $50.1 billion by 2032. Despite strong growth potential, some companies are struggling with rising operational costs, scalability issues, and financial instability, impacting stock performance in the sector.

Factors like high operational costs, energy consumption, supply chain disruptions, and regulatory uncertainties are challenging vertical farming and hydroponic companies. These challenges have led to significant stock underperformance, with companies facing difficulties in securing funding and demonstrating sustainable long-term business models amid industry pressures and economic constraints.

Edible Garden AG Incorporated (NASDAQ: EDBL) ranks as one of the worst vertical farming and hydroponic stocks to buy. Despite a focus on sustainability, the company has faced financial challenges, including a 72% drop in share price year-to-date. Revenue decline, supply chain inefficiencies, and weak demand have contributed to its position as a struggling agriculture stock in the market.

Edible Garden AG Incorporated reported a revenue drop to $2.6 million in the third quarter of 2024, citing lower-margin product phase-outs. While gross profit margin improved to 27.1%, the company incurred a net loss of $2.1 million, highlighting ongoing financial concerns and operational challenges. The shift towards nutraceuticals raises doubts about its strategic direction in a competitive industry.

Despite efforts to cut costs and improve leverage through debt repayments, Edible Garden AG Incorporated continues to grapple with liquidity concerns, decreasing revenue, and operational challenges. While its sustainability initiatives may attract niche investors, the company’s uncertain strategic direction and financial instability position it as one of the worst agriculture stocks in the market, ranking 3rd on the list of worst vertical farming and hydroponic stocks to buy.

Read more: Is Edible Garden AG Incorporated (EDBL) the Worst Vertical Farming and Hydroponic Stock to Buy?