Strong earnings outlook could produce bumper harvest for APPH stockholders

• AppHarvest’s (APP) vision of increasing productivity and sales pays off in 2022.
• At the same time, APPH stock price continues to hit fresh 52-week lows.
• Investors should plant a seed with AppHarvest by buying a few stocks and hopefully watching them grow over time.

Based in Kentucky, AppHarvest (NASDAQ:APP) develops and operates indoor farms. This may seem like an unusual company to invest in, but APPH stock appears to have strong upside potential at its current price.

Perhaps you have never considered investing in an agricultural technology company before. Also, you may be hesitant to buy a stock that is testing new lows. These are understandable concerns.

Still, a deep dive into AppHarvest might convince you to try an unusual investment opportunity. This is a truly unique business that makes the world more sustainable and could soon be profitable.

What’s going on with APPH Stock?

AppHarvest CEO Jonathan Webb is no ordinary executive. In a recent interview, Webb made it clear that he was ready to disrupt modern agriculture with technology-enhanced, yet sustainable farming methodologies.

It also provided insight into an agri-tech company in rapid expansion mode. “We will have four farms open by the end of the year…nearly 8 million square feet of growing area for strawberries, salad greens and a multitude of tomato varieties,” Webb boasted.

Those are impressive stats, but they apparently didn’t help AppHarvest investors much. Down from a 52-week high of $20.22, APPH stock recently touched $2.60, near the low end of its range.

Somehow, the investment community is unimpressed with AppHarvest’s plan to open not one, but three tech-enhanced indoor farms in Kentucky this year. Webb expects these farms to accelerate sales growth, allow the company to “become financially self-sufficient” and attract new investment capital.

Many more tomatoes

Digging even deeper into AppHarvest’s business, we can take a look at the company’s Q1 2022 results to see how this agricultural tech disruptor is faring.

Impressively, the company had net sales of $5.2 million for the quarter. This represents an increase of approximately 125% year over year.

Also, if you don’t mind using tomato sales as a metric, check this out. In the first quarter of 2022, AppHarvest sold 6.9 million pounds of tomatoes. That’s significantly more tomatoes than the 3.8 million pounds sold in the year-ago quarter.

Best of all, though, perhaps AppHarvest reiterated its full-year 2022 net sales outlook of $24 million to $32 million. That would be more than double 2021 net sales for the company.

What you can do now with APPH Stock

Webb’s business isn’t profitable yet, but that could change in the next few quarters. In the meantime, it’s encouraging to see AppHarvest growing in revenue (and tomato sales, too.)

Although APPH stocks are still very cheap, it’s not a bad idea to grab a few stocks as a speculative bet. In the era of modern agricultural technology, you never know where AppHarvest will put down its roots next.

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As of the date of publication, David Moadel had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.