5 Best Farmland and Agriculture Stocks To Buy According to Analysts

In this article, we discuss the 5 best farmland and agriculture stocks to buy according to analysts. To read the detailed analysis of the industry, go directly to the 11 Best Farmland and Agriculture Stocks To Buy According to Analysts.

5. The Mosaic Company (NYSE:MOS)

Number of Hedge Fund Holders: 43

Average Analyst Price Target Upside: 29.07%

The Mosaic Company (NYSE:MOS) is a producer and marketer of concentrated phosphate and potash crop nutrients. On March 21, the company declared a quarterly dividend of $0.21, payable by June 20 to the shareholders of record on June 6. As of May 8, the stock has a dividend yield of 2.83%.

The Mosaic Company (NYSE:MOS) is among the best farmland and agriculture stocks to buy according to analysts. The stock has a consensus Buy rating among 5 analysts, and its average price target of $38.18 represents an upside of 29.07% from current levels, as of May 8.

The Mosaic Company (NYSE:MOS) was held by 43 hedge funds in the fourth quarter of 2023 and the stakes amounted to $565.181 million. AQR Capital Management is the top shareholder of the company and has a position worth $115.67 million, as of December 31, 2023.

The Mosaic Company (NYSE:MOS) was mentioned in White Brook Capital Partners’ fourth-quarter 2023 investor letter:

“The Mosaic Company (NYSE:MOS) and Green Plains (GPRE), our commodity-sensitive investments, remain substantial positions in the portfolio. The companies are a natural hedge to each other in some ways, as the price of corn is a feedstock for Green Plains while it bolsters the purchasing power of Mosaic’s customers. On the other hand, higher oil prices are a positive for Green Plains, while the opposite is true for Mosaic.

The Mosaic thesis didn’t change during 2023. The world’s potash and phosphate needs grow at a ~2% CAGR, and the price for potash and phosphate, which declined from Covid peaks during 2023, is likely to be at least stable in 2024. Mosaic continues to generate substantial free cash flow on a business with lessening capital intensity, and the balance sheet has a very manageable debt load. The Company’s CEO, Jack O’Roarke, announced his retirement at the end of 2023, but I expect the company to go from strength to strength as long-time heir apparent Bruce Bodine leads the company in 2024. I believe the company will continue to return capital to shareholders through enhanced stock buybacks while investing in high-return brownfield opportunities that will continue to grow long-term free cash flow per share. Additionally, should battery manufacturers adopt more phosphate in their batteries as Tesla and Ford have begun to do, it could significantly change the demand dynamics of one of its two products and ensure Mosaic’s significant cash flows years into the future.”

4. Lamb Weston Holdings, Inc. (NYSE:LW)

Number of Hedge Fund Holders: 46

Average Analyst Price Target Upside: 30.77%

Lamb Weston Holdings, Inc. (NYSE:LW) is a producer, seller, and distributor of potato products, other vegetables, dairy, and other food products. In the fourth quarter of 2023, 46 hedge funds had stakes in Lamb Weston Holdings, Inc. (NYSE:LW) with total positions worth $2.59 billion. As of December 31, 2023, Viking Global is the largest shareholder in the company and has a position worth $383.22 million.

Lamb Weston Holdings, Inc. (NYSE:LW) has a consensus Buy rating among 8 analysts, and its average price target of $109.38 has an upside of 30.77% from current levels, as of May 8.

On March 21, Lamb Weston Holdings, Inc. (NYSE:LW) declared a quarterly dividend of $0.36, payable by May 31 to the shareholders of record on May 3. The stock’s dividend yield is 1.72%, as of May 8.

The London Company made the following comment about Lamb Weston Holdings, Inc. (NYSE:LW) in its Q3 2023 investor letter:

“Lamb Weston Holdings, Inc. (NYSE:LW) – LW underperformed after the company reported lower volumes and provided a cautious outlook. This sparked fears the industry could have too much capacity as volumes slow. However, management has been clear the majority of the lower volume for LW has been intentional by shedding lower margin contracts. On a positive note, the fry attachment rate remained high. We remain attracted to LW’s market share, pricing power, and industry tailwinds.”

3. Darling Ingredients Inc. (NYSE:DAR)

Number of Hedge Fund Holders: 34

Average Analyst Price Target Upside: 37.28%

Darling Ingredients Inc. (NYSE:DAR) is a developer, producer, and seller of natural ingredients made from edible and inedible bio-nutrients. The company operates through Feed Ingredients, Food Ingredients, and Fuel Ingredients segments.

Darling Ingredients Inc. (NYSE:DAR) is among the best farmland and agriculture stocks to buy according to analysts. Based on 10 Wall Street analysts’ ratings over the past three months, the stock has a consensus rating of Strong Buy. The average price target of $63.00 has an upside of 37.28% to the stock’s current price, as of May 8.

Darling Ingredients Inc. (NYSE:DAR) was part of 34 hedge funds’ portfolios in the fourth quarter of 2023 with a total stake value of $750.224 million. Impax Asset Management is the most dominant shareholder in the company and has a position worth $188.219 million as of Q4 2023.

First Pacific Advisors stated the following regarding Darling Ingredients Inc. (NYSE:DAR) in its fourth quarter 2023 investor letter:

“Darling Ingredients Inc. (NYSE:DAR) is the world’s largest rendering operation with 17% of the global market and a higher share in the core U.S. market. 28 The business is one part industrial where scale and route density are big advantages – they collect unused animal waste from slaughterhouses and butchers – and one part commodity – their plants process this waste into fats, bone meal and ingredients that trade at prices set by the global commodity markets. Finally, DAR’s Diamond Green Diesel joint venture with Valero turns animal fats into green energy – a business that benefits from renewables subsidies and tax credits. The company took on debt to make three large acquisitions in 2022, adding additional complexity as Darling integrates the acquisitions and de-levers. The stock has sold off because of weakness in Darling’s commodity end markets, falling renewable information number (RIN) prices and lower earnings and guidance reported for the second and third quarters. 29 We first purchased Darling shares in 2008 and have watched as CEO Randy Stuewe has grown Darling from a minnow to a global behemoth. As of December 31.2023, Darling trades at approximately 10x forward earnings and, despite the company’s commodity exposure and organizational complexity, we are comfortable holding a mid-sized position.”

2. Bioceres Crop Solutions Corp. (NASDAQ:BIOX)

Number of Hedge Fund Holders: 10

Average Analyst Price Target Upside: 55.89%

Bioceres Crop Solutions Corp. (NASDAQ:BIOX) is an Argentina-based company that offers crop productivity solutions. The company has a commercial presence in over 45 countries and has more than 750 patents and patent applications. At a stake value of $114.065 million, 10 hedge funds held positions in Bioceres Crop Solutions Corp. (NASDAQ:BIOX). As of Q4 of 2023, Solel Partners is the most prominent shareholder in the company and has a position worth $62.87 million.

On May 7, Bioceres Crop Solutions Corp. (NASDAQ:BIOX) reported that its 3 new bio-insecticidal/bio-nematicidal solutions derived from inactivated cells received approval from Brazil’s Ministry of Agriculture and Livestock (MAPA- Ministério da Agricultura e Pecuária), marking a first for biological products formulated from fully inactivated microorganisms in the Brazillian market.

Bioceres Crop Solutions Corp. (NASDAQ:BIOX) has a consensus rating of Strong Buy as per the 4 Wall Street analysts that have covered it over the past three months. The average price target of $20.25 has an upside of 55.89% from the present levels, as of May 8.

1. Lavoro Limited (NASDAQ:LVRO)

Number of Hedge Fund Holders: 5

Average Analyst Price Target Upside: 60.86%

Lavoro Limited (NASDAQ:LVRO) is an agricultural inputs retailer and operates through three segments, Brazil Cluster, LATAM Cluster, and Crop Care Cluster. Lavoro Limited (NASDAQ:LVRO) tops our list of the best farmland and agriculture stocks to buy according to analysts.

Based on 2 Wall Street analysts’ ratings in the last three months, Lavoro Limited (NASDAQ:LVRO) has a consensus rating of Moderate Buy. The average price target of $9.33 represents an upside of 60.86% from the current levels, as of May 8.

5 hedge funds had investments in Lavoro Limited (NASDAQ:LVRO) in the fourth quarter of 2023, with positions worth $12.291 million.

Should you invest $1,000 in Lavoro Limited (NASDAQ:LVRO) right now?

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Disclosure: None. You can also look at the Hidden Gems: Unveiling the 10 Stocks on Hedge Funds’ Radar and the 20 Countries with the Highest Literacy Rate in the World.

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