10 Best Potash Stocks to Buy

1. Archer-Daniels-Midland Company (NSYE:ADM)

Number of Hedge Fund Holders: 40 

Archer-Daniels-Midland Company (NYSE:ADM) is a leading global agricultural company that processes and trades agricultural commodities, providing food ingredients, animal feeds, and biofuels.

ADM’s core business segments, including agricultural and metal commodities, are poised to benefit from favorable market conditions in late 2024. Commodities typically perform well during inflation, and lower interest rates plus a weaker dollar make them more attractive globally. ADM is expanding direct-to-farmer buying and enhancing its nutritional segment to capitalize on higher commodity prices. The company has shown resilience, posting solid quarterly earnings above consensus for the fifteenth consecutive quarter and raising its dividend. With a 10% YoY EPS growth, ADM is attractively valued, offering nearly 20% upside potential based on DDM and P/E ratio analysis, and trades below its 5-year average valuation ratios.

In Q1 2024, there were 40 hedge fund holders in Archer-Daniels-Midland Company (NYSE:ADM). D E Shaw held the largest position in the company with 4,132,861 worth $259,585,000, comprising 0.225 of the company’s total portfolio. The company’s adjusted earnings per share (EPS) in Q1 2024 was $1.46, surpassing the analyst estimate of $1.36 per share, which represents a $0.20 per share increase compared to the prior year, driven by volume improvements in the Ag Services & Oilseeds (AS&O) segment. Their segment operating profit was $1,311 million on a reported basis and $1,317 million on an adjusted basis, a 24% decrease compared to the prior year.

Overall, Archer-Daniels-Midland Company ranks first among the Best Potash Stocks to Buy. You can visit 10 Best Potash Stocks to Buy to see the other potash stocks that are on the hedge fund radar. While we acknowledge the potential of potash stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than Archer-Daniels-Midland but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These 10 Stocks in June.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.