In this article, we will be looking at the 5 best agriculture stocks to invest in. If you want to see our detailed analysis of the agriculture sector, you can go directly to the 10 Best Agriculture Stocks to Invest In.
5. Archer-Daniels-Midland Company (NYSE: ADM)
Number of Hedge Fund Holders: 34
Archer-Daniels-Midland Company (NYSE: ADM) is a company involved in the procurement, transport, storing, processing, and merchandising of agricultural commodities, products, and ingredients in the US and internationally. It ranks 5th on our list of the best agriculture stocks to invest in.
This May, Barclays raised its price target on Archer-Daniels-Midland Company (NYSE: ADM) from $60 to $75, keeping an Overweight rating on the shares. Analyst Benjamin Theuer commented that the price target growth came in light of changes within the structure of the Chinese pork industry, foreseeable growth because of green diesel, and an adjusted operating profit of $1 billion from Nutrition drives.
In the first quarter of 2021, Archer-Daniels-Midland Company (NYSE: ADM) had an EPS of $1.39, beating estimates by $0.33. The company’s revenue was $18.89 billion, up 26.21% year over year and beating estimates by $2.67 billion. Archer-Daniels-Midland Company (NYSE: ADM) has gained 15.63% in the past 6 months and 20.03% year to date.
As of the end of the first quarter of 2021, 34 hedge funds out of the 866 tracked by Insider Monkey held stakes in Archer-Daniels-Midland Company (NYSE: ADM) worth roughly $696 million. This is compared to 35 hedge funds in the previous quarter with a stake value of about $703 million.
4. Corteva, Inc. (NYSE: CTVA)
Number of Hedge Fund Holders: 35
Corteva, Inc. (NYSE: CTVA) is an agricultural services company offering trait technologies to help enhance resistance to weather, disease, insects, and herbicides, alongside crop protection products for use against weeds, insects, and other pests, among a range of other products and services. It ranks 4th on our list of the best agriculture stocks to invest in.
This June, Deutsche Bank analyst David Begleiter commented that Corteva, Inc. (NYSE: CTVA) shares, which have already risen 60% in the past 9 months, may rise another 40-50% by the end of 2023, to $60. JP Morgan has also kept its Overweight rating on the shares with a $51 price target as of this May.
In the first quarter of 2021, Corteva, Inc. (NYSE: CTVA) had an EPS of $0.79, beating estimates by $0.14, and the company’s revenue was $4.18 billion, up 5.61% year over year and beating estimates by $342.91 million. Corteva, Inc. (NYSE: CTVA) has gained 61.74% in the past year.
As of the end of the first quarter of 2021, 35 hedge funds out of the 866 tracked by Insider Monkey held stakes in Corteva, Inc. (NYSE: CTVA) worth roughly $1.50 billion. This is compared to 38 hedge funds in the previous quarter with a stake value of about $1.39 billion.
Rhizome Partners, an investment management firm, mentioned Corteva, Inc. (NYSE: CTVA) in its first-quarter 2021 investor letter. Here’s what they said:
“We are still getting used to the higher multiples that investors will pay for larger market cap and pure play companies such as Corteva. We do understand the market’s rationale. For example, Corteva operates in a duopoly with Monsanto, owned by Bayer AG, that provides genetically modified seeds and pesticides. With some operating leverage, the company can probably grow FCF at 4-6% a year. This brings the total return close to the long-term return of the S&P 500 index of 10%. Through trial and error, we have come to appreciate how scale, higher market share, route densities, switching costs, and collaborative relationships amongst major industry players can contribute to sustained high returns on invested capital.”
3. The Mosaic Company (NYSE: MOS)
Number of Hedge Fund Holders: 38
The Mosaic Company (NYSE: MOS) is a producer and marketer of concentrated phosphate and potash crop nutrients in North America and internationally, and the company ranks 3rd on our list of the best agriculture stocks to invest in.
This July, RBC Capital raised its price target on The Mosaic Company (NYSE: MOS) from $43 to $45, keeping an Outperform rating on the stock. Analyst Andrew Wong commented that The Mosaic Company (NYSE: MOS) will gain from the Esterhazy K3 project and the restart of Colonsay in the potash market.
In the first quarter of 2021, The Mosaic Company (NYSE: MOS) had an EPS of $0.57, beating estimates by $0.04. The company’s revenue was $2.30 billion, up 27.75% year over year and beating estimates by $50.62 million. The Mosaic Company (NYSE: MOS) has gained 12.28% in the past 6 months and 33.29% year to date.
As of the end of the first quarter of 2021, 38 hedge funds out of the 866 tracked by Insider Monkey held stakes in The Mosaic Company (NYSE: MOS) worth roughly $944 million. This is compared to 39 hedge funds in the previous quarter with a stake value of about $841 million.
Appleseed Fund, an investment management firm, mentioned The Mosaic Company (NYSE: MOS) in its first-quarter 2021 investor letter. Here’s what they said:
“Our most significant contributors to the Fund’s equity performance during the quarter (includes) Mosaic Company (MOS). As for Mosaic, its share price has risen in sympathy with increasing grain prices, which should stimulate additional farmer investment into improving crop yields.”
2. Bunge Limited (NYSE: BG)
Number of Hedge Fund Holders: 44
Bunge Limited (NYSE: BG) is an agribusiness and food company operating globally to provide agricultural commodities like oilseeds, products from animal feed manufacturers and livestock producers, and other related items. It ranks 2nd on our list of the best agriculture stocks to invest in.
This May, Barclays raised its price target on Bunge Limited (NYSE: BG) from $85 to $100, reiterating the firm’s Overweight rating on the company’s shares. Analyst Benjamin Theurer has commented that the continued positive outlook for Bunge Limited (NYSE: BG) comes from robust demand for grain products worldwide, alongside growing demand for green diesel, both of which the company provides.
In the first quarter of 2021, Bunge Limited (NYSE: BG) had an EPS of $3.13, beating estimates by $1.59, and the company’s revenue was $12.96 billion, up 41.3% year over year and beating estimates by $2.68 billion. The stock has gained 8.75% in the past 6 months and 16.56% year to date.
As of the end of the first quarter of 2021, 44 hedge funds out of the 866 tracked by Insider Monkey held stakes in Bunge Limited (NYSE: BG) worth roughly $653 million. This is compared to 51 hedge funds in the previous quarter with a stake value of about $936 million.
1. Caterpillar Inc. (NYSE: CAT)
Number of Hedge Fund Holders: 53
Caterpillar Inc. (NYSE: CAT) sells construction and mining equipment and also provides agriculture industry solutions alongside equipment for the industry backed by the company’s support. It ranks 1st on our list of the best agriculture stocks to invest in.
This June, Deutsche Bank raised its price target on Caterpillar Inc. (NYSE: CAT) to $273, keeping a Buy rating on the company’s shares. In May, Evercore ISI also raised its price target on the stock to $303, with an Outperform rating on the shares.
In the first quarter of 2021, Caterpillar Inc. (NYSE: CAT) had an EPS of $2.87, beating estimates by $0.93, and the company’s revenue was $11.89 billion, up 11.77% year over year and beating estimates by $799.74 million. Caterpillar Inc. (NYSE: CAT) has gained 10.26% in the past 6 months and 18.58% year to date.
As of the end of the first quarter of 2021, 53 hedge funds out of the 866 tracked by Insider Monkey held stakes in Caterpillar Inc. (NYSE: CAT) worth roughly $4.95 billion. This is compared to 53 hedge funds in the previous quarter with a stake value of about $4.15 billion.
You can also take a peek at 10 Most Profitable Agricultural Business Ideas and 10 Largest Agricultural Companies.
