Best agriculture stock: 11 Best Farmland and Agriculture Stocks To Buy Heading Into 2023

The forward P/E multiple of TSN stock is just 10x, and the shares have an attractive dividend yield of 2%. Indeed, the company reported stronger-than-expected fiscal second-quarter results on May 20, and it expects to generate $7 billion to $7.4 billion of net income in its full fiscal year. Before the Ukraine-Russia War, the U.S. was the world’s second-largest exporter of wheat, behind Russia. 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. Calavo Growers also has a business segment that creates, markets and distributes healthy, fresh foods. These include fresh-cut fruit and vegetables, as well as some other prepared foods.

• 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.
• Its forward EV/EBITDA multiple of 30.90 is 158.7% higher than the industry average of 11.94.
• For example, in the last 12 months to March 31, it spent $159.4 million on share repurchases.
• This leaves plenty of room for AGCO to raise its dividend and also to buy back large amounts of its shares.
• 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.

Collaborating with New Culture, a company that makes animal-free cheese products that look and feel like the real thing. 284,531 shares of the world’s leading producer of human and animal nutrition company. At Sure Dividend, we often advocate for investing in companies with a high probability of increasing their dividends each and every year. Cost of goods was up 26% from $2,430 million for the third quarter of 2021 to $3,063 million. However, adjusted EBITDA was down 19% compared to the 3Q2021. For the nine months, sales are up 25% and adjusted EBITDA are up 27% compared to the same nine months of 2021.

Inflation Pushes Agriculture Stocks Higher

AGRI’s operating loss increased 97.1% year-over-year to $13.66 million during the fiscal year that ended December 31, 2022. Its net loss increased 93.8% year-over-year to $12.97 million, while the net loss attributed to common share increased 7.6% year-over-year to $0.71. Analysts expect ALCO’s revenue to decline 43.6% year-over-year to $28 million for the current fiscal quarter ending March 2023. Its EPS is expected to decline 95.3% year-over-year to $0.13 for the same quarter.

CVR Partners’ operations include an ammonia unit, a urea ammonium nitrate unit, and a gasifier complex. CVR’s latest cash distribution of $10.05 per common unit was paid on Aug. 22, 2022. Agriculture is a great investment thanks to the increasing demand for food and agricultural products and the reliable average dividends and growth these companies see each year. Biologicals are microbe-based treatments of soils or crops designed to boost yields, improve defenses against pests, and reduce dependence on chemical inputs.

Best Agricultural Stocks

The information on Retirement Investments could be different from what you find when visiting a third-party website. Agriculture stocks refer to any stock for a company creating products needed for growing food or raising livestock. Farming stocks come from companies focused solely on food production. Check out the stocks we mentioned above to see if any of them fit into your investing strategy. Learning how each company operates and how agricultural stocks can affect your portfolio can give you a lower risk chance and better returns in the long run. Agricultural stocks offer investors a new sector to invest in that can experience good growth through the increasing demand for its products.

Before the Russia-Ukraine War, Russia was the best agriculture stock supplier of fertilizer, while Russia and Ukraine were, respectively, the world’s largest and fifth-largest exporter of grain. With Russia blockading Ukraine’s direct access to waterway routes and much of the world refusing to buy Russia’s fertilizer, now is a good time to buy agriculture stocks. It bears an average target price of around $415 but currently trades at $330. The most bullish analysts believe DE stock could even hit $480. The best agriculture stocks depend on your portfolio and investment goals — while volatility can be ideal for day traders, long-term investors will want to look to stocks with steadier gains over time. We recently reached out to Sang-hoon Shin, the CEO of data agricultural startup Green Labs, to talk about the developments and opportunities in the agriculture technology space.

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. 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. The company manufactures equipment used in farming, construction, forestry and large-scale landscaping.

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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. To protect yourself from this loss, you can invest in inflation-proof companies, the ones that can pass along their increasing costs to customers.

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. It includes Market Trends, volume, and value according to a global viewpoint, analyzing historical data and future possibilities. The report covers the market overview and geographical regions with the esteem of market size, growth, emerging trends, and new opportunities. It provides a comprehensive competitive landscape of the worldwide market, including market dynamics, drivers, and segments by application, type, region, and manufacturers.

Biotech Stocks to Buy for Breakthrough Treatments and Cures

Bunge offers services in agricultural transportation and oilseed refinement and has its headquarters in St. Louis, Missouri. The company maintains relations with several innovators in the agricultural space, offerings roughly 200 years of experience to these developers. Caterpillar posted a 2021 sales report of $51 billion and has been operating for almost 100 years, making it also a worthwhile company to hold for the long term.

Please appreciate that there may be other options available to you than the products, providers or services covered by our service. Finder monitors and updates our site to ensure that what we’re sharing is clear, honest and current. Our information is based on independent research and may differ from what you see from a financial institution or service provider. When comparing offers or services, verify relevant information with the institution or provider’s site. CF Industries CF Industries Holdings, Inc. manufactures and sells hydrogen and nitrogen products for energy, fertilizer, emissions abatement, and other industrial activities worldwide.

Pesticides (cash flow and dividends)

But advanced technology is transforming today’s farm sector from seed to harvest, which has never been more important than now. Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services.

At $10.77 per share on July 14, the stock has a forward multiple of 7.9x earnings for 2022. It falls to 7.3x for next year based on analysts’ average forecast of $1.48 per share, up from $1.36 in 2022. ScottsMiracle-Gro offers exposure to individual consumers such as gardeners and homeowners in need of lawn care products, as well as farmers. The stock did well during the early stages of the COVID-19 pandemic as stay-at-home orders and a general shift to more time spent outdoors sparked an interest in lawn and garden care. However, revenue declined in recent quarters as the economy has reopened, although comparisons should get easier over the rest of 2022.

Therefore, to fulfil the increasing https://forex-world.net/ 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. AI-powered solutions that improve crop quality, quantity, and market entry time can help farmers become more productive. The agricultural sector significantly impacts several regional, national, and international economic sectors. It accounts for 4% of the global GDP and more than 25% of GDP in developing countries. For investors, these companies can provide a stable source of dividend income even if their stock prices decline sharply with the overall market, which has happened in recent months.

FMC Corporation FMC Corporation, an agricultural sciences company, provides crop protection, plant health, and professional pest and turf management products. The company markets its products through its own sales organization and through alliance partners, independent distributors, and sales representatives. After Russia’s invasion of Ukraine, several significant uncertainties make it hard to forecast the future prognosis for any business precisely. Because of the close ties between the energy and fertilizer sectors, this might have an impact on global agriculture suppliers. Russian exports of potash, ammonia, urea and other organic fertilizers have been significantly hampered due to Western sanctions on the country.