10 Worst Farmland and Agriculture Stocks to Buy According to Short Sellers

6. CNH Industrial N.V. (NYSE:CNH)

Number of Hedge Funds: 42

Short % of Float: 6.24%

CNH Industrial N.V. (NYSE:CNH) is one of the top agricultural and construction equipment producers. The company offers a plethora of machinery to farmers, including tractors, combines, and precision agriculture technologies. The company operates well-known brands, New Holland Agriculture and Case IH, enabling it to supply essential tools for modern farming globally.

The company reportedly drove net sales of $4.1 billion through industrial activities for Q4 ended December 31, 2024. This was a decrease of 31% from the previous year, owing to lower industry demand and reductions in dealer inventory. Similarly, net sales for the whole year were reported to be $17.1 billion, which was a decline of 23% as a result of reduced sales of farm equipment. Moreover, the company reported an adjusted net income of $196 million for Q4 and diluted earnings per share of $0.15 per share, while its net income for the full year stood at $1.3 billion.

Additionally, CNH Industrial N.V. (NYSE:CNH) reduced its agricultural production hours by 34% in Q4 and 28% for the whole year, improving efficiency, to counter the declining demand. These advances helped lower stock levels by over $700 million at the dealer’s end in Q4. Through manufacturing process optimization and increasing operational efficiency, the company was able to achieve $600 million in cost savings.

Despite the challenges from the equipment market, CNH Industrial N.V. (NYSE:CNH) continued its investments in precision agriculture and upheld its pricing discipline. Accordingly, in-house production for precision components saw an increase to 80% in 2024 from 60% in 2023. This improvement furthered product innovation and cost savings. Furthermore, the company reported a net income of $379 million for the full year for its Financial Services segment, supplemented by efficient risk management and secure asset returns.

Under the market conditions, CNH Industrial N.V. (NYSE:CNH) projects its sales to drop by 13%-18% due to an expected decline in the demand for agricultural equipment by 5% to 10%. Having already experienced the decline in demand and inventory levels during the last quarter, skepticism is high among the short sellers, making CNH one of the worst farmland and agriculture stocks to buy according to short sellers.