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8 Best Agriculture Stocks to Buy in 2023 The Motley Fool

8 Best Agriculture Stocks to Buy in 2023 The Motley Fool

best agriculture stock

In March 2021, I suggested Corteva was one of seven safe stocks that wouldn’t bleed your portfolio. I liked the stock because I believed Corteva would do well in 2021 and beyond. Needless to say, please do your own due diligence before buying any of these investments. We’ll also continue to discuss most (if not all) of these companies in 2023 and beyond as new developments occur. Still, Mosaic and fellow fertilizer producer Nutrien Ltd. see a strong market ahead.

  • Because the difference between agriculture demand and supply is razor-thin.
  • There are many ways to gain exposure to farmland without going out and buying a farm yourself.
  • During 2021, the stock of the company started climbing slowly and steadily.
  • Even better, all 7 agriculture stocks pay dividends to shareholders, making them attractive for income investors.
  • The standardized performance presented herein has been calculated by MoneyMade based on data obtained from the third-party platform hosting the investment and is subject to change.
  • MRMD’s CEO mentioned that the company is on track to maximize its presence in Massachusetts, with plans to open a third dispensary in Beverly soon.

Thanks to its strong brand power, SMG is able to charge higher prices and — when combined with its economies of scale — generates attractive profit margins on its products. Furthermore, this brand power results in strong customer loyalty as consumers are willing to pay slightly up for products that have proven to reliably deliver positive results. When you combine the high-single-digit expected growth rate and the 2.2% dividend yield, ADM is a strong candidate to generate double-digit annualized returns with relatively low risk over the long-term.

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The company has over 1,700 retail locations in North America, South America, and Australia and is one of the world’s largest manufacturers and suppliers of potash, nitrogen, and phosphate. On December 13th, 2022, Toro increased its dividend for the 14th consecutive year, by 13% to $0.34 per share quarterly. Revenues were up by 1.8%, from $23.6million in the first quarter of 2022 to $24.1 million. Net income increased from $1,054 million to $1,170 million, or a 11% growth for the quarter compared to the first quarter of 2022.

From a price of $ 50.41, the stock closed the year at $ 67.59, representing a 34 % appreciation during the year. The agriculture industry is one of the largest influencers of the global economy, employing more than one billion people globally. Some of the leading agriculture companies generate up to $ 50-$ 115 billion in annual revenue.

Fertilizer companies aren’t always the hottest names on Wall Street, but their products are in high demand and are vital for ensuring an abundant food supply. The industry is garnering attention after top-consumer China’s corn shortage (due to weather-related issues and covid lockdowns) and its recent vow to increase its agricultural imports from the U.S. So, with crop prices on the upswing, the companies that cater to agriculture (including equipment makers, seed providers and fertilizer producers) are also outperforming. That said, let’s take a look at some of the more promising companies in this sector. As the global population grows, the demand for agricultural products remains constant. Adding agricultural stocks to your portfolio can offer diversification benefits and reduce risk, as they have a low correlation with other sectors.

Food Systems Are Responsible for Significant Emissions

It sells a range of agricultural equipment, including tractors, grain storage bins, seed-processing systems, self-propelled windrowers, forage harvesters, disc mowers, spreaders, rakes, tedders, mower conditioners, etc. But which of these agricultural stocks is the best buy right now? Studies have shown that roughly half of a stock’s price movement can be attributed to a stock’s industry group. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. By focusing on the top stocks within the top 50% of Zacks Ranked Industries, you can dramatically improve your stock picking success. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer.

best agriculture stock

For conservative-minded investors, a plus for Scotts Miracle-Gro is that it also offers a reasonably generous dividend north of 2% at the time of our research. Scotts has an extensive distribution network, selling to hardware companies, warehouse clubs, home centers, nurseries, garden centers, and even food and drug stores. It also operates a direct sales force which targets hydroponic distributors and retailers. Gardeners know they can trust Scotts for gardening and landscape products, as well as plant foods, garden soil, and potting mixes. Scotts has embraced the trend towards organic products with a lineup of offerings too. Start by focusing on companies that have earned reputations as producers of great products and have built strong brand value.

The Scotts Miracle-Gro Company (NYSE:SMG)

The company’s superior scale relative to competitors enables it to invest more aggressively in growing its online business. When you combine growing volume with SMG’s pricing power that enables it to raise prices roughly in-line with inflation each year, the company should generate robust earnings growth for years to come. When combining the high-single-digit to low-double-digit annualized earnings per share growth potential with the attractive current dividend yield of ~3.3%, the total return proposition here is appealing. We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions.

Assenagon Asset Management Shows Confidence in Corteva’s … – Best Stocks

Assenagon Asset Management Shows Confidence in Corteva’s ….

Posted: Fri, 30 Jun 2023 14:14:08 GMT [source]

Lastly, Wall Street analysts peg BG as a consensus strong buy. Moreover, their average price target stands at $123, implying over 29% upside potential. That number has almost doubled as a result of higher crop prices, high export demand, high energy prices, and a lot of other interrelated factors.

Top 11 Best Agricultural And Farmland Stocks In 2023

If anything, the reopening of the Chinese economy will spur demand for crops and meats (both are related), as well as energy commodities (including corn). Fertilizers are important because they are a major driver of crop growth. Using https://bigbostrade.com/ corn as an example, the US plants roughly 90 million acres of corn. However, during this period, the global population grew by 4x. Hence, when input costs suddenly start to rise, we often witness surges in crop prices as well.

  • Geopolitical tensions like an invasion of Taiwan would have a major impact on crop prices as it would disrupt demand and supply chains.
  • He particularly enjoys creating model portfolios that stand the test of time.
  • The infrastructure segment helps with road and bridge repairs and contributed the other 14%.
  • One of these methods is by investing in stocks related to the farming or agriculture business.
  • On the bottom line, it now expects EPS of at least $9.48, 28 cents higher than its previous guidance.

Many publicly traded agriculture companies have found success in other ways, such as by manufacturing farming auxiliaries like tractors and fertilizers. Some of the best agricultural stocks are from companies on the cutting edge of agricultural science and technology. Here are some top agricultural https://forexbox.info/ companies to invest in that are making moves to stay relevant going into the future. As with other agriculture stocks to buy, Deere rates best in the operational department. Presently, DE’s price-earnings-growth (PEG) ratio sits at 0.97 times, below the sector median PEG of 1.19.

Best Agriculture Stocks To Buy

“FMC is an agricultural sciences company providing solutions for the protection of crops from different pests. Its products are used by farmers to ensure bugs, weeds and fungi do not negatively impact their harvest. Headquartered in Philadelphia, Pennsylvania, the company has a rich history dating back to 1883 when inventor John Bean set out to build a better insecticide spray pump.

best agriculture stock

After years of enduring oversupplies and falling prices, America’s farmers are rejoicing as grain and oilseed prices have been on a tear. In the last year, for instance, soybean futures prices increased by roughly 30%, while corn prices have more than doubled since an August 2020 bottom. https://forex-world.net/ For corn, the recent uptick comes on the heels of a huge 2020 rise – its best yearly performance in eight years. Soybean prices, meanwhile, had their best showing since 2016 in 2020. Farm cash receipts from marketing Florida agricultural products in 2020 amounted to $7.41 billion.

A wave of consolidations in recent years is also reshaping the industry. The company is also targeting $1 billion in productivity savings by the end of fiscal 2024, which should help improve profitabilitynthat has also been affected by higher commodity prices. Management also expects strong pricing in all regions, as well as volume growth from new product launches and entry into new markets. FMC is a chemical company that serves the agriculture, food and beverage, and pharmaceutical industries, among others. Nutrien is a leading producer of fertilizer, crop protection products, and seed.

A stronger dollar has also been weighing on ag commodities such as fertilizer. Since global commodities are priced in dollars, a strong dollar makes them more expensive in other currencies, bringing down the price. Nutrien Ltd. (NTR) is the largest producer of potash and the third largest producer of nitrogen in the world. Both are essential fertilizers for the world’s major crops and have been in high demand among U.S. growers this year. Mosaic has reported higher fertilizer demand from farmers in Brazil (which had an excellent 2020) and sees a big opportunity for capacity additions in that country.

The stocks are ranked according to expected returns over the next five years, in order of lowest to highest. “If they [Russia] pull supply, natural gas prices go up … it means fertilizer prices go up, and we have a restart to the inflation regardless of what the central banks are doing on interest rates.” These are the agriculture stocks that had the highest total return over the last 12 months.

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