7 Agricultural Stocks to Buy as Cash-Rich Farmers Open Their Wallets

Exxon Mobil is a resilient stock that can outperform tech stocks during economic slowdowns. Shares almost doubled in 2022, while many high-growth stocks faltered. The contrarian pick has only gained 5% year-to-date but has the potential to rally in 2024. Other stocks get ignored or stuck with low valuations relative to their potential and the valuations of fellow peers.

Fertilizers are in short supply, with 28% of fertilizers made from nitrogen coming from Russia and Ukraine, creating a surge that makes these stocks excellent hedges against rising inflation and fundamentally sound. CF has 14 FY1 Up analyst revisions within the last 90 days and zero downward revisions despite just2trade review recent earnings being amiss. Q revenue of $2.87B beat by $246.02M, an increase of 173.66% year-over-year, so the company is optimistic about its long-term free cash flow, which is excellent, up 238.28% compared to its sector. Intrepid announced Q Earnings last week, and both top- and bottom-line beat.

That trend should continue, as the vast majority of people in America — historically a meat-loving nation — would not willingly give up or even cut back on meat consumption. And, given the huge amounts of money Americans as a whole have saved in the last couple of years and the fact that the employment market remains very strong, they can afford to pay higher meat prices. As a result, I expect Tyson’s profits and growth to continue to be very strong, no matter what happens to the inflation rate going forward.

Best Farmland and Agriculture Stocks To Buy Heading Into 2023

Agriculture stocks are a compelling place to look for long-term stock investments. That’s because the demand drivers of the industry make it extremely likely to be around far into the future. For the quarter, the company reported revenue of $1.34 billion, an increase of 4% versus the first quarter of 2022, and adjusted earnings per diluted share of $1.77, down 6% versus the same quarter previous year. The business saw diluted earnings-per-share of $1.63, beating analyst estimates and rising from $1.32 for the same period last year.

Fertilizer prices soared in 2021 as raw material costs increased for nitrogen fertilizers and demand also rose, leading to a boom year for producers such as Nutrien. Prices for fertilizers such as nitrogen and potash spiked even higher after Russia invaded Ukraine; both countries are major fertilizer producers. More recently, they’ve come down for the same reason that commodity prices are down. Here’s a list of eight top dividend-paying agriculture stocks spanning a variety of investment opportunities. Canada-based Nutrien is the largest potash producer and the third-largest nitrogen producer globally. Such production levels makes it the world’s largest fertilizer supplier by capacity.

  • In fact, TipRanks reports that 17 analysts have an average price target of $403.50, which is 37% over today’s price.
  • If you to skip our introduction of agriculture stocks and small cap investing, then head on over to 5 Best Small Cap Agriculture Stocks To Buy.
  • These are the AgTech & Food Innovation ETF (KROP) and the iShares Global Agriculture Index ETF (COW).
  • Gross profit increased by 10.7% to $1.17 billion, and gross margin increased to 35.5%.
  • However, net earnings declined to $665 million, or $1.76 per diluted share, down from $828 million, or $2.17 per diluted share, a year ago.

The price per bushel stabilized to 2021 levels only in April this year but recent trends might indicate that this is about to change. In fact, July 2023 was not a great month for the wheat market, as Russia pulled out of the Black Sea grain deal that allows for the export of Ukrainian grain. As July ends, wheat prices are on the upside once again after they bottomed out to roughly $6.5 in May.

With much of the world refusing to buy wheat from Russia, American wheat farmers will be able to sell much more grain at much higher prices than previously. This list outlines the dividend capture strategy for selecting prominent dividend stocks that will trade ex-dividend in October 2023. The ex-dividend date is the last day for purchasing a stock to be eligible for the upcoming dividend. The list is organized by date, with earlier ex-dividend dates listed first, and later dates following in sequence.

That’s because the nearly 20 analysts with current coverage of FMC give it a target stock price of $120.78, 37% higher than its current $88 price. Increased spending for dirt and iron will serve to increase the prospects of agricultural stocks focused on real estate and farm equipment in particular. The value of U.S. cropland hit record highs this year according to federal data. And prices for new and used farm equipment are soaring as well. We believe the 7 agriculture stocks examined in this article are the best within the industry.

All 43 Agriculture Stocks List For 2023 The Best 7 Buys Now

Mosaic’s first-quarter results, reported on May 2, narrowly missed analysts’ average outlook. Bank of America expects China to continue its ban on fertilizer makers beyond the scheduled halt this year, and the firm thinks this development will benefit Mosaic and its peers. And as the world’s largest exporter of fertilizer is being prevented from selling anything to many countries, the prices of fertilizer have been volatile.

Reasons for investing in Agriculture Stocks

Another company focused on manufacturing agricultural auxiliaries is Caterpillar, Inc, an American firm that develops industrial technology and sells farming and earthmoving equipment. There’s a high chance you caught a glimpse of the ‘CAT’ logo if you’ve ever passed by almost any construction site in the world. Humans have been farming for over 10,000 years, but the evolution of agriculture over the past century is a trend investors must capitalize on. Bayer acquired Monsanto in 2018 to become the dominant player in the industry. And, in a series of transactions from 2018 to 2019, FMC completed the spinoff of its lithium segment, sold its nutrition business, and purchased assets from DuPont to become one of the largest global agrochemical companies. DuPont and Dow Chemical merged and then split into three separate companies in 2019, with one being Corteva Agriscience.

Tyson Foods (TSN)

They will benefit from the ongoing inflationary pressures while passing on costs to customers. The ongoing war in Ukraine will also put focus on food supplies worldwide. On June 2, research firm Piper Sandler increased its price target on CF stock to $132 from $120. According to the firm, “grain prices will ‘both remain elevated and reset the standard for midcycle levels going forward,’ The Fly reported. With farmland investments, technology has vastly leveled the playing field.

It is also well-known for its processed pork and protein-based products. Marysville, Ohio-based Scotts Miracle-Gro is the largest manufacturer of gardening and lawn care products stateside. In addition, Hawthorne Gardening is its wholly-owned subsidiary offering cannabis-growing equipment. In addition, management indicated that it already has 85% of Q1 sales committed due to its ability to raise inventories 58% YOY. The Esterhazy K3 potash mine will begin production by Q2 2022, adding 5 million metric tons of potash production through 2022. However, net earnings declined to $665 million, or $1.76 per diluted share, down from $828 million, or $2.17 per diluted share, a year ago.

Nutrien is the world’s largest provider of crop inputs and services, playing a critical role in helping growers sustainably increase food production. They produce and distribute approximately 27 million tonnes of potash, nitrogen, and phosphate review buffett: the making of an american capitalist products worldwide. With this capability and its leading agriculture retail network, the company is well-positioned to supply the needs of its customers. Cybersecurity stocks are also one of the best investment opportunities.

Nasdaq

In addition to integrating new tech with its battle-tested tractors, John Deere is also expanding to the field of precision agriculture and had recently unveiled its first autonomous tractor. There’s a favorable outlook on vintage fx the company’s stock as they further embrace the internet-of-things and other high-tech enhancements. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.

Right now the stock has an attractive dividend yield of 2.8% at Thursdays closing price of $169.94. All this makes it one of the best agriculture stocks to buy now. In fact, TipRanks reports that 17 analysts have an average price target of $403.50, which is 37% over today’s price. This article on agricultural stocks to buy started by alluding to increased spending by farmers on dirt and iron. That is, they manufacture equipment like tractors, combines and seeding and tillage equipment, among others.


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