In this article, we will look at the 5 best farmland and agriculture stocks to buy today. If you want to explore similar stocks and get additional further background on the agriculture industry, you can also read the 10 Best Farmland and Agriculture Stocks to Buy Today.
5. Nutrien Ltd. (NYSE:NTR)
Number of Hedge Fund Holders: 48
Nutrien Ltd. (NYSE:NTR) provides crop inputs and services. It offers potash, nitrogen, phosphate, and sulfate products. The company also distributes crop nutrients, crop protection products, seeds, and merchandise products through approximately 2,000 retail locations in the United States, Canada, South America, and Australia. As of August 22, Nutrien Ltd. (NYSE:NTR) has gained 49.59% over the past 12 months.
On August 4, Nutrien Ltd. (NYSE:NTR) declared a quarterly cash dividend of $0.48 per share. The dividend is payable on October 14, to investors of record at the close of business on September 30. As of August 22, Nutrien Ltd. (NYSE:NTR) is trading at a PE ratio of 7.29x and its shares offer a forward dividend yield of 2.13%, which the company supports with free cash flow of $2.70 billion.
On August 9, Scotiabank analyst Ben Isaacson upgraded Nutrien Ltd. (NYSE:NTR) to ‘Outperform’ from ‘Sector Perform’ and revised his price target to $110 from $118. On August 10, Barclays analyst Benjamin Theurer revised his price target on Nutrien Ltd. (NYSE:NTR) to $105 from $126 and reiterated an ‘Overweight’ rating on the shares. The analyst maintained his confidence in the company’s retail business and noted that it delivered strong performance and customer retention in the first-half of 2022.
At the close of Q2 2022, 48 hedge funds were long Nutrien Ltd. (NYSE:NTR) with stakes worth $1.06 billion. Of those, First Eagle Investment Management was the most prominent shareholder with a stake worth $668 million.
4. Bunge Limited (NYSE:BG)
Number of Hedge Fund Holders: 48
Bunge Limited (NYSE:BG) operates as an agribusiness and food company worldwide. The company operates through four segments: Agribusiness, Refined & Specialty Oils, Milling, and Sugar & Bioenergy. Shares of Bunge Limited (NYSE:BG) have surged 31.18% over the past 12 months, as of August 22.
On July 27, Bunge Limited (NYSE:BG) reported earnings per share of $2.97 for the second quarter, while it generated revenue of $17.9 billion, up 16.52% year-over-year. On August 11, Bunge Limited (NYSE:BG) declared a quarterly cash dividend of $0.625 per share, payable on December 2 to shareholders of record on November 18. As of August 22, the stock has a trailing twelve-month PE ratio of 8.53x and BG shares have a forward dividend yield of 2.50%.
Wall Street is bullish on Bunge Limited (NYSE:BG). On July 28, Barclays analyst Benjamin Theurer revised his price target on Bunge Limited (NYSE:BG) to $125 from $135 and reiterated an ‘Overweight’ rating on the shares. On August 12, Wolfe Research analyst Sam Margolin initiated coverage of Bunge Limited (NYSE:BG) with an ‘Outperform’ rating and a $127 price target. The analyst sees upside to the company’s growth guidance in a stronger commodity price environment.
At the close of Q2, 48 hedge funds were bullish on Bunge Limited (NYSE:BG) and held stakes worth $729 million in the company. Of those, Millennium Management was the top shareholder, owning shares worth $177 million.
Here is what Old West Investment Management had to say about Bunge Limited (NYSE:BG) in its first-quarter 2022 investor letter:
“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.
Heckman was a long time executive at Conagra Foods who obviously sensed opportunity at BG. One of his first moves as CEO was to move the company’s HQ from New York to St. Louis, right in the middle of America’s breadbasket. BG had been plagued for years with poor decisions by underperforming management. Heckman’s decision to move to St. Louis was indicative of a no-nonsense style and he would commence cutting expenses and selling non-core assets…” (Click here to see the full text)
3. The Mosaic Company (NYSE:MOS)
Number of Hedge Fund Holders: 50
The Mosaic Company (NYSE:MOS) produces and markets concentrated phosphate and potash crop nutrients in North America and internationally. The company operates through three segments: Phosphates, Potash, and Mosaic Fertilizantes. As of August 22, The Mosaic Company (NYSE:MOS) has gained 73.67% year-to-date.
On August 1, The Mosaic Company (NYSE:MOS) announced Q2 earnings per share of $3.64 and revenue of $5.37 billion, the latter up 91.85% year-over-year. On August 18, The Mosaic Company (NYSE:MOS) announced that its board of directors has declared a quarterly cash dividend of $0.15 per share, payable on September 15 to investors of record on August 31. As of August 22, The Mosaic Company (NYSE:MOS) is trading at a PE ratio of 6.19x and its stock has a forward dividend yield of 1.12%, which the company backs with free cash flow of $1.68 billion.
On August 3, Citi analyst P.J. Juvekar upgraded The Mosaic Company (NYSE:MOS) to ‘Buy’ from ‘Neutral’ and raised his price target to $61 from $57. The analyst expects agriculture stocks to outperform in an economic downturn.
At the end of Q2, 50 hedge funds were long The Mosaic Company (NYSE:MOS) with stakes worth $896 million. Soroban Capital Partners was the largest shareholder in the company with a $318 million stake.
Here is what Carillon Tower Advisers had to say about The Mosaic Company (NYSE:MOS) in its “Carillon Scout Mid Cap Fund” first-quarter 2022 investor letter:
“Despite a rally near the end of the quarter, major equity indexes closed lower as fear of U.S. Federal Reserve (FED) balance sheet tapering, interest rate hikes, and war in the Ukraine sent the bulls into retreat. Supply chains eased for some goods, but remained challenged for many commodities including energy, agriculture, and fertilizer due to war and general scarcity, and also in many consumer products as semiconductors remained in short supply. Potash and phosphate fertilizer producer Mosaic (NYSE:MOS) performed strongly as war exacerbated already short supplies of key oil and gas exploration.”
2. CF Industries Holdings, Inc. (NYSE:CF)
Number of Hedge Fund Holders: 52
CF Industries Holdings, Inc. (NYSE:CF) manufactures and sells hydrogen and nitrogen products for energy, fertilizer, emissions abatement, and other industrial activities worldwide. The company’s principal products include anhydrous ammonia, granular urea, urea ammonium nitrate, and ammonium nitrate products. As of August 22, CF Industries Holdings, Inc. (NYSE:CF) has gained 134.38% over the past 12 months.
On August 1, CF Industries Holdings, Inc. (NYSE:CF) announced its financial results for the second quarter of 2022. The company reported earnings per share of $6.15, outperforming expectations by $0.36. The company’s revenue grew by 113.41% year-over-year and amounted to $3.39 billion.
On August 3, Citi analyst P.J. Juvekar upgraded CF Industries Holdings, Inc. (NYSE:CF) to ‘Buy’ from ‘Neutral’ and raised his price target to $117 from $99. On August 10, Barclays analyst Benjamin Theurer upgraded CF Industries Holdings, Inc. (NYSE:CF) to ‘Overweight’ from ‘Equal Weight’ and raised his price target to $120 from $103. The analyst noted that the company’s low-cost U.S. ammonia production gives it a competitive advantage over its European counterparts that are suffering from higher input costs. Theurer sees CF Industries Holdings, Inc. (NYSE:CF) benefiting from surging demand and tight supply as high prices in Europe eliminate its competition.
At the close of Q2, 52 hedge funds held stakes in CF Industries Holdings, Inc. (NYSE:CF) worth $1.33 billion. Soroban Capital Partners was the top stakeholder again, with a $213 million position.
Carillon Tower Advisers mentioned CF Industries Holdings, Inc. (NYSE:CF) in its “Carillon Clarivest Capital Appreciation Fund” first-quarter 2022 investor letter. Here is what the firm had to say:
“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. CF Industries (NYSE:CF) manufactures and distributes nitrogen fertilizer. The stock rose as Russia’s invasion of Ukraine accelerated already rising fertilizer prices.”
1. Deere & Company (NYSE:DE)
Number of Hedge Fund Holders: 54
Deere & Company (NYSE:DE) manufactures and distributes various equipment worldwide. The company operates through four segments: Production & Precision Agriculture, Small Agriculture & Turf, Construction & Forestry, and Financial Services. Deere & Company (NYSE:DE) is one of the leading manufacturers of tractors, cotton pickers, sugarcane harvesters, harvesting front-end equipment, sugarcane loaders, pull-behind scrapers, and tillage & seeding equipment. As of August 22, Deere & Company (NYSE:DE) shares have gained 6.24% year-to-date.
On August 19, Deere & Company (NYSE:DE) announced strong fiscal third quarter 2022 results. The company’s earnings per share came in at $6.16, while it generated revenue of $13 billion, up 24.84% year-over-year and beating Wall Street’s expectations by $158 million. As of August 22, the stock has a forward dividend yield of 1.22%.
On August 22, Evercore ISI analyst David Raso raised his price target on Deere & Company (NYSE:DE) to $439 from $416 and reiterated an ‘Outperform’ rating on the shares. The analyst noted that Deere & Company (NYSE:DE) is one of his “Top 5 Favorites”. The analyst also raised his EPS estimate for fiscal 2023 to $28.33 from $26.31 and for fiscal 2024 to $31.70 from $28.28.
At the close of Q2 2022, 54 hedge funds were long Deere & Company (NYSE:DE) with stakes worth $1.58 billion. As of June 30, First Eagle Investment Management is the leading shareholder in Deere & Company (NYSE:DE), owning roughly 1 million shares of the company. The investment covers 0.83% of the fund’s 13F portfolio.
Here is what ClearBridge Investments had to say about Deere & Company (NYSE:DE) in its second-quarter 2022 investor letter:
“In our engagements with farm equipment maker Deere (NYSE:DE), we have followed new technology as it has developed from early promise of environmental and social benefits to market reality. In March 2022, Deere’s Chairman & CEO and CFO met with ClearBridge’s investment team in our New York offices. While prior to the pandemic we had regularly hosted the company, this meeting was among the most interesting as the relatively new CEO outlined a bold plan that placed improved environmental stewardship squarely at the center of the company’s future.
Industrial farming, at its core, is not an especially environmentally friendly enterprise. Agronomic practices have improved over time, but fertilizer, herbicide and pesticide applications and water usage remain problematic. Deere believes its precision farming technology can drive down chemical and fertilizer volumes materially —possibly by as much as 70% — as sensors and cameras attached to tractors, sprayers and combines help determine the exact level of chemicals that might be required…” (Click here to see the full text)
You can also take a look at the Top 10 Agriculture Stocks To Buy Now and 10 Healthy and Sustainable Food Stocks to Buy.
