5 Best Agriculture Stocks to Buy Now

In this article, we will be looking at the 5 best agriculture stocks to buy now. If you want to read our detailed analysis of the agriculture sector, you can go directly to see the 14 Best Agriculture Stocks to Buy Now.

5. Bunge Limited (NYSE:BG)

Number of Hedge Fund Holders: 48

Bunge Limited (NYSE:BG) is a food and agricultural company. Agribusiness, refined and speciality oils, milling, and sugar and bioenergy are the company’s four business segments. There are over 69 refining and packaging facilities in its Refined and Specialty Oils business, over 23 in its Milling segment, and over 11 in its Sugar and Bioenergy segment.

On October 24, BofA analyst Steve Byrne maintained a ‘Buy’ rating and trimmed his price objective on Bunge Limited (NYSE:BG) to $130 from $138. Byrne remarked that despite the extremely tight crop supply/demand balance in the United States and abroad, the agricultural cycle forecast remained relatively optimistic. He regarded this tightness as favourable for Archer and Bunge Limited (NYSE:BG).

Jack Woodruff’s Candlestick Capital Management is Bunge Limited (NYSE:BG)’s largest investor through a $94.96 million stake. At the end of the third quarter of 2022, 48 hedge funds in the database of Insider Monkey held stakes worth $763.10 million in Bunge Limited (NYSE:BG).

Old West Investment Management mentioned Bunge Limited (NYSE:BG) in its Q1 2022 investor letter. Here is what the firm has to say:

“Bunge (pronounced BUN-GEE) Ltd (NYSE:BG) is one of the biggest agribusinesses and food companies in the world. There are four worldwide companies that dominate the sector, the others being Archer-Daniels-Midland Cargill, and Dreyfuss. One of our favorite ways to screen for new ideas is following insider buying. When I saw the Form 4 filed by new Bunge CEO Greg Heckman, his purchase of $9 million of BG stock intrigued me. My initial thought was the company gave him the stock as a signing bonus. I contacted BG Investor Relations and asked whether it was a signing bonus or did Heckman actually write a check for $9 million. IR assured me it was his own hard-earned money that he invested in the company he was about to run.…” (Click here to see the full text)

4. Corteva, Inc. (NYSE:CTVA)

Number of Hedge Fund Holders: 50

Corteva, Inc. (NYSE:CTVA) is a holding corporation that specializes in agricultural goods. It operates in two segments: seed and crop protection. The company stands fourth on the list of 14 best agriculture stocks to buy now.

On November 17, Benjamin Theurer, an analyst at Barclays, raised his price objective on Corteva, Inc. (NYSE:CTVA) from $71 to $75 and reiterated an ‘Overweight’ rating for the company since he was confident about the overall agriculture sector.

Among the hedge funds tracked by Insider Monkey, 50 funds were long Corteva, Inc. (NYSE:CTVA) at the end of Q3 2022, compared to 42 funds in the earlier quarter. In addition, Israel Englander’s Millennium Management held a notable stake in Corteva, Inc. (NYSE:CTVA), comprising 2.60 million shares worth $148.71 million.

Here is what Aristotle Capital Management specifically said about Corteva, Inc. (NYSE:CTVA) in its Q1 2022 investor letter:

“Corteva Agriscience, one of the world’s largest seed and crop protection companies, was a primary contributor for the quarter. Due to its respected brand and the value-added benefits of its patented seeds and crop protection solutions for farmers, Corteva has been able to more than offset input cost inflation with sustainable price increases. In addition, the company’s ongoing mix shift to higher-margin, premium products, a catalyst we previously identified, is aiding both sales and profit growth. Shares were likely also buoyed by the rise in crop prices. Market participants, perhaps eager to chase short-term trends, poured into the sector. At Aristotle Capital, we look past such gyrations and, as long-term investors, do not attempt to predict short-term changes in commodity prices. We remain excited about what we view to be high-quality characteristics and fundamental improvements that permeate Corteva’s business, not the least of which include its pricing power.”

3. Nutrien Ltd. (NYSE:NTR)

Number of Hedge Fund Holders: 52

Nutrien Ltd. (NYSE:NTR) is a crop fertilizer company based in Canada that makes and sells potash, nitrogen, and phosphate products to agricultural, industrial, and feed industries. Nutrien Ltd. (NYSE:NTR) shares have offered investors returns exceeding 13% over the course of the past twelve months.

After the Q3 results, Barclays analyst Benjamin Theurer reiterated an ‘Overweight’ rating on Nutrien Ltd. (NYSE:NTR)’s shares but decreased his price objective from $105 to $95 on November 11. Jean-Marie Eveillard’s First Eagle Investment Management is the company’s most significant stakeholder, with 8.42 million shares worth $701.79 million.

At the end of Q3 2022, Nutrien Ltd. (NYSE:NTR) was a part of 52 hedge fund portfolios, compared with 48 in the previous quarter. The stakes owned by these hedge funds have a total value of over $957.48 million.

Miller/Howard Investments mentioned Nutrien Ltd. (NYSE:NTR) in its Q1 2021 investor letter. Here is what the firm has to say:

“For the most part, performance of the stocks within the Income-Equity Strategies was skewed towards the high-performing market sectors with two exceptions – our consumer discretionary and technology stocks both did better than their broad market peers… We bought Nutrien (NTR), a producer of fertilizer, which we believe should benefit from increasing crop prices.”

2. Deere & Company (NYSE:DE)

Number of Hedge Fund Holders: 57

Deere & Company (NYSE:DE) manufactures and distributes agricultural, construction, forestry, and turf care equipment. Its business sectors are agriculture & turf, construction and forestry, and financial services. Deere & Company (NYSE:DE) currently has a $124.26 billion market capitalization and was able to deliver a 17.91% return in the past twelve months.

Prior to the release of the Q3 results, Deutsche Bank analyst Nicole Deblase boosted his price objective on Deere & Company (NYSE:DE) from $365 to $374 and retained a ‘Hold’ rating on the stock. According to the analyst, the firm might forecast better than expected for fiscal 2023.

According to Insider Monkey’s data, 57 hedge funds were long Deere & Company (NYSE:DE) at the end of Q3 2022, compared to 54 funds in the preceding quarter. Michael Larson’s Bill & Melinda Gates Foundation Trust is the most prominent stakeholder of Deere & Company (NYSE:DE), with 3.92 million shares worth about $1.31 million.

Here is what investment management firm, ClearBridge Investments, had to say about Deere & Company (NYSE:DE) in its Q3 2022 investor letter:

“For example, we believe that farm equipment manufacturer Deere & Company (NYSE:DE) continues to benefit from both a strong farm economy and product innovations that directly benefit farmers’ productivity while also reducing their environmental footprint. The company has also demonstrated excellent execution, highlighted by capturing market share and maintaining margins despite dealing with a labor strike and elevated supply chain costs.”

1. CF Industries Holdings, Inc. (NYSE:CF)

Number of Hedge Fund Holders: 65

CF Industries Holdings, Inc. (NYSE:CF) produces and sells nitrogen fertilizer. The company provides agricultural and industrial clients with its run nitrogen plants through its distribution network. CF Industries Holdings, Inc. (NYSE:CF) runs seven nitrogen plants in North America and has joint venture interests in additional Trinidad and Tobago and United Kingdom production facilities.

Of the 920 elite funds tracked by Insider Monkey, 65 hedge funds owned stakes in CF Industries Holdings, Inc. (NYSE:CF) in Q3 2022, compared with 52 in the previous quarter. The aggregate value of these stakes is over $1.53 billion.

Due to the fluctuating input costs and unstable near-term demand trend in the agriculture sector, Mizuho analyst Christopher Parkinson reduced his price objective for CF Industries Holdings, Inc. (NYSE:CF) from $117 to $113 on November 1 and maintained a ‘Neutral’ rating on the company.

Soroban Capital Partners is the leading shareholder of the company with 2.49 million shares of CF Industries Holdings, Inc. (NYSE:CF), worth over $239.45 million. Next on the list is Renaissance Technologies, that owns 1.72 million shares of the company, worth over $165.21 million.

Chartwell Investment Partners mentioned CF Industries Holdings, Inc. (NYSE:CF) in its Q2 2022 investor letter. Here is what the firm has to say:

“We sold the full position in fertilizer company CF Industries, which also had a 20%+ YTD return (through 6/30), as we had concerns that the company would announce capacity additions, which would negatively impact nitrogen pricing.”

You can also take a peek at 12 Fastest Growing Economies in Africa and Top 10 Stock Picks of Eli Casdin’s Casdin Capital