8 Best Agriculture Stocks to Buy in 2023 The Motley Fool

The Plant Nutrient segment continued to see high margins, however, there were some write-downs in lawn products inventory. On November 2nd, 2022, Scotts Miracle-Gro reported its Q and full-year results. The company recorded sales of $493.6 million during the quarter, a 33% decline compared to Q4-2021, primarily driven by a 49% sales decline in the Hawthorne division and an 18% decline in the U.S. The decline in Hawthorne’s sales was due to oversupply issues in the cannabis industry amid record sales last year. The Scotts Miracle-Gro Company is one of the world’s leading marketers of branded consumer lawn and garden as well as hydroponic and indoor growing products. The company offers fertilizers, grass seed products, spreaders, outdoor cleaners, and any lawn-related weed, pest, and disease control products.

Paccar has an https://forex-world.net/ 1 year price target of $76.81, an upside of 5.62% from Paccar’s current stock price of $72.72. Terex has an average 1 year price target of $55.50, an upside of 23.77% from Terex’s current stock price of $44.84. Agco has an average 1 year price target of $149.25, an upside of 18.57% from Agco’s current stock price of $125.87. Its presence is balanced both geographically around the world, as well as from a crop exposure standpoint, with soybeans being the largest at roughly 20% of total revenue. In terms of products, FMC’s portfolio skews toward insecticides, which account for over 60% of its revenue. The remainder are herbicides (~25%), as well as fungicides and other crop chemicals (~15%).

• Over the decades, through acquisitions, FMC became a disparate collection of chemical companies.
• This is good news for Mosaic , the largest producer of phosphate and potash fertilizers in the U.S.
• For the nine months, sales are up 25% and adjusted EBITDA are up 27% compared to the same nine months of 2021.
• Its forward annual dividend of $2.50 translates to a 2.39% yield on current prices.

While Titan may be the least techy stock thus far, the company does have a strong horizontal position across all vehicle manufacturing segments. 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.

The price of Planet Labs’ stock has nearly halved since going public last year. However, this downward action doesn’t reflect their strong balance sheet and the unrealized value of repeat imagery of the Earth’s surface. Planet Labs is designated a public benefit corporation because its mission goes beyond just its interests as a for-profit business. The prospects of Planet Labs as an investment only improve as it grows its partnership with Elon Musk’s SpaceX and expands to other applications like traffic management. Planet Labs is a satellite company that provides earth imagery data for forest management, biodiversity monitoring, drought response, agriculture, and several other applications.

Also, its EPS increased 7.7% from its year-ago value to $0.28. For the fiscal fourth quarter that ended on December 31, 2022, BG’s gross profit increased 18.7% year-over-year to $818 million. Its adjusted total segment EBIT grew 8.8% year-over-year to $740 million, while its net income came in at $336 million, up 45.5% year-over-year. Also, its net income per common share increased 45.4% year-over-year to $2.21.

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On a cumulative basis, just 0.11% of its Agricultural Finance Mortgage Loans have soured. Between 2000 and 2021, its outstanding business volume achieved a compound annual growth rate of 10%. All 70 projects aim to help farmers, academics, agriculture-related companies, and government agencies work together to produce a more efficient, innovative, and climate-friendly industry. The stock of the company has been on a bearish run for the past two years. From a price of $ 199.14, the stock declined up to $ 161 in the year 2021. Other – The Other segment refers to the consumer lawn and garden business in geographies other than the U.S. and product sales to commercial nurseries, greenhouses, and other professional customers.

Perhaps more than any other industry, agriculture is here to stay. It’s a safe bet we will be practicing agriculture far into the future. WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security. The average P/E ratio of the farm & heavy construction machinery industry is 15.78x. Hyster Yale Materials Handling’s dividend payout ratio of -29.5% indicates that its dividend yield might not be sustainable for the long-term. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.

The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree. The stock gained 2.3% intraday to close the last trading session at $78.95. Let’s look closer at the industry’s upside potential amid continued uncertainty. Global markets staged an impressive rebound in the past 12 months due to several forces, writes Kevin Cook. SEC commissioner Luis Aguilar waves warning flags about the growing incidence of private companies merging with shell companies as a means of going public — so-called back-door listings. When you join us, you get full access to our expertly curated collection of free investing reports, including 5 Best Stocks to Buy this Month, How to Find Undervalued Stocks, 10 Forever Stocks to Buy, and more.

The conclusions, recommendations and opinions presented in this report reflect the opinion of the consultant and do not necessarily reflect the opinion of the Commission. ADM shares were trading at $76.70 per share on Wednesday afternoon, down $2.25 (-2.85%). Year-to-date, ADM has declined -16.94%, versus a 0.93% rise in the benchmark S&P 500 index during the same period. DOLE shares have gained 27% over the past six months to close the last trading session at $11.72. Analysts expect DOLE’s EPS for the fiscal year 2024 to increase 16.5% year-over-year to $1.11.

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INGR released fourth-quarter 2022 results on February 8th, 2023. In Q4, Ingredion saw growth in all regions as net sales increased 13% to $1.99 billion. Leadership initiated their fiscal 2023 outlook which guides for net sales growth of 7% to 10% and adjusted EPS in the range of $4.70 to $4.90 per diluted share, a solid 14.3% year-over-year increase at the midpoint. Revenues are now expected to be in the range of $5.6 to $5.8 billion, reflecting 13% growth at the midpoint versus 2021, and adjusted earnings per diluted share are expected in the range of $7.10 to $7.60.

Therefore, these companies offer excellent opportunities for investors. As of November 15, 2022, the world’s population reached 8 billion, three times that in 1950. There will be 8.5 billion people on the planet by 2030, 9.7 billion by 2050, and 10.4 billion by the end of the century. Therefore, to fulfil the increasing food demand in 2050, global agriculture production must grow by about 50% from the present levels. The challenge for farmers, governments, and scientists is to increase food production without accelerating environmental deterioration and the climatic problem.

Inflation Pushes Agriculture Stocks Higher

The mortgage market is a big one, and it intends to keep gobbling up more of it in the years to come. Recurring revenue multiplied by rock-solid growth is a recipe for success. I guess that’s why AGM stock’s gained 3,200% since the March 2009 lows during the financial crisis. I liked the stock because I believed Corteva would do well in 2021 and beyond. In 2022, the stock started at $ 161 and last closed at $ 40.87, representing a whopping 75 % decline to date.

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. No company exemplifies these competitive advantages more than Scotts Miracle-Gro. Merck is a global pharmaceutical company with a large focus on veterinary applications conducted by its animal health division.

Definitive List Of Cheapest Agricultural Commodities ETFs

Financhill just revealed its top stock for investors right now… For income-oriented investors, SMG offers an attractive 2.75% dividend . 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.

On Best agriculture stock, analysts expect agriculture stocks to rise by 20.58% over the next year. In this article, we will be looking at the 14 best agriculture stocks to buy now. If you want to skip our detailed analysis of the agriculture sector, you can go directly to see the5 Best Agriculture Stocks to Buy Now. Companies focused on plant-based products may benefit by creating partnerships and supply agreements with larger agriculture companies such as Archer-Daniels-Midland, Bunge, and Tyson Foods. 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.

These funds can invest in a bundle of commodity types, or focus on one specific commodity. The state of Florida has 17.16 million acres of forestland, representing 50% of the state’s total land area. Nearly two-thirds of Florida’s forestlands are privately owned by industry, corporations, families or individuals. Globally, sales of synthetic methionine and lysine for feed applications exceed $10 billion annually, and the market is expected to grow with underlying animal protein demand. As a result, the commercialization of these soybeans could add to the company’s topline growth.

Agriculture Stock #3: Archer-Daniels-Midland (ADM)

The success of Planet Labs is owed to its constellation of over 200 geospatial satellites that monitor crops and ecological trends using information gathered from space. We believe the 7 agriculture stocks examined in this article are the best within the industry. While we expect no EPS growth, the 2.5% dividend yield and 11.5% annual returns from an expanding P/E multiple will fuel future returns. We expect annual returns of 11.8% per year, due to 5% expected EPS growth, the 2.2% dividend yield, and a small boost from an expanding P/E multiple. We expect annual returns of 11.9% per year, driven by expected EPS growth of 7%, the 5.2% dividend yield and a small decline from a lower P/E multiple.

• Advances in data crunching, satellite imagery, and mobile computing power have given rise to digital agriculture.
• 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.
• Nutrien, one of the world’s largest fertilizer producers and the largest potash producer, is on track to generate 17 million metric tons annually.

I would put SMG on your watchlist if you’re an aggressive investor. If you bought back then and didn’t sell at its all-time high of $180.43 in April 2021, I feel your pain times two. However, the average target price is $92.72, 35% higher than where it’s currently trading. 18.1% of revenue and 17.4% of operating income — while John Tyson appears to be in the running to become CEO in the future. On page 7 of its presentation, Farmer Mac points out that it has just 6% of the farm sector real estate debt of $302 billion.

It has underperformed other stocks in the agriculture industry by -3 percentage points. It has overperformed other stocks in the agriculture industry by 34 percentage points. Titan International’s stock has dropped -26.42% in the past year. It has underperformed other stocks in the agriculture industry by -23 percentage points. Paccar stock has a consensus Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Paccar, 28.57% have issued a Strong Buy rating, 0% have issued a Buy, 57.14% have issued a hold, while 14.29% have issued a Sell rating, and 0% have issued a Strong Sell.

Advisory, where every week chief analyst Mike Cintolo provides you with 10 of the market’s strongest growth stocks from both a technical and a fundamental perspective. Much of its focus is on tech-enabled “precision farming,” which enables growers to monitor fields and apply crop protection and nutrients in exactly the right amounts based on satellite-generated data. Precision farming has been widely adopted in major growing regions like Europe, South America and China. Also supportive is the recent phase 1 trade deal with China (projected to further boost U.S. grain and oilseed crop sales). CNBC’s Jim Cramer on Tuesday offered a list of five agriculture and three fertilizer stocks he believes investors should consider purchasing. John Deere and Caterpillar continue to develop autonomous machines.

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. These are the agriculture stocks that had the highest total return over the last 12 months.

Scotts Miracle-Gro has also been expanding into hydroponics and owns Hawthorne Gardening Company. This business serves growers of all sizes, from commercial cultivators to home hobbyists. And this makes it a top agriculture stock to consider buying.

Click here to instantly download your free spreadsheet of all Agriculture Stocks now, along with important investing metrics. Individual products, businesses, and even entire industries go out of style and become obsolete. Agriculture stocks were up 0.44% in the last day, and up 2.64% over the last week. Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Beyond Meat, Precision BioSciences, and Scotts Miracle-Gro. Investing in Energy Stocks The economy needs energy across sectors to run smoothly, making these companies potential buys.