AppHarvest stock is looking quite appetizing for investors. In fact, some people believe this company is the “future of farming.” Will AppHarvest (Nasdaq: APPH) become a household name on the stock market? Or will this innovative business struggle to realize its full potential over the coming years?

AppHarvest stock is growing due to its greenhouses in Kentucky

AppHarvest Stock History and Growth Potential

AppHarvest was founded in 2017 in Morehead, Kentucky. It’s a company full of “dreamers and doers” with a goal of providing fresher food and sustainable growth.

Its mission is to feed the future with fresh, nutritious fruits and veggies. And it’s doing this through a homegrown food supply that is curated in the heart of the Appalachian Mountains.

After just three years, the company has gained a lot of attention for its steady growth and visionary ideas. And now you can purchase AppHarvest stock after the company went public via a reverse merger on February 1, 2021.

AppHarvest went public by completing a reverse merger with a SPAC called Novus Capital. The merger gave the company more than a $1 billion valuation. Of which, $435 million was “unrestricted cash” that AppHarvest could use to fund operations on all levels. For example, this includes building more advanced indoor farms to support the companies’ growth.

In fact, this is the first greenhouse company to go public via a reverse IPO. And it instantly paid off for investors. AppHarvest stock soared nearly 44% after going public.

This pushed the share price over $35. However, the opening surge didn’t last long. And the APPH stock price was volatile throughout February before taking a huge dive to begin March.

It’s now trading around $20 a share after falling to $16 earlier in the month. But this isn’t discouraging investors.

Overall, most experts and analysts consider AppHarvest stock to be a “buy” with a lot of upside potential. And this is largely due to its net revenue projections and future prospects.

In 2021, the company projects it will make $21 million in net revenue from only 60 acres of capacity. That’s a hefty chunk of change, especially when you consider the company’s plans for the future.

AppHarvest Future Outlook

AppHarvest is preparing to take the agriculture industry by storm. And it’s already doing so by bringing in former Impossible Foods CFO David Lee as its new President.

The company’s plan is to operate a dozen greenhouses by 2025 that focus on producing tomatoes, berries, leafy greens and cucumbers. AppHarvest is well on its way and recently placed 12th on the FoodTech 500 rankings.

Moreover, the company purchased a controlled environment agriculture (CEA) facility for $125 million. This movement alone is giving investors a reason to keep a close watch on AppHarvest stock. According to President David Lee from a press release

The purchase of our first CEA facility allows us to reduce our operating costs by eliminating the previous lease expense and creates an opportunity to leverage a portion of this asset with low-interest debt that will create a positive return on equity for investors. As a testament to its climate resilience, our Morehead farm just set a performance record for harvesting, even as many other operators suffered weather-related challenges,

Investing in Agriculture

Your first thoughts may not steer towards agriculture when you begin investing in the stock market. However, it’s an ever-growing industry that has potential if you do your research.

Therefore, sign up for the Trade of the Day e-letter below. This daily newsletter gives you expert stock picks, trends and analysis from some of Wall Street’s most respected investors.

You may discover the next market mover or trending stock that can take your portfolio to the next level. And AppHarvest stock may be one to watch going forward as the company continues to expand its production in Kentucky.