5 Best Farmland Stocks to Buy Now

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

Number of Hedge Fund Holders: 52

CF Industries Holdings, Inc. (NYSE:CF) is an Illinois-based manufacturer and distributor of various kinds of fertilizers.

CF Industries Holdings, Inc. (NYSE:CF) believes that the continued requirement to restock grain reserves around the world is likely to drive up global nitrogen demand. Hence, the company anticipates producing significant free cash flow for a long time. CF Industries Holdings, Inc. (NYSE:CF) plans to increase its ammonia production footprint while providing returns to shareholders. The stock offers a dividend yield of 1.51% as of August 22.

On August 10, Benjamin Theurer upgraded CF Industries Holdings, Inc. (NYSE:CF) stock from ‘Equal Weight’ to ‘Overweight’ and increased the target price from $103 to $120. The analyst highlighted that due to lower natural gas prices in the U.S. compared to Europe, CF Industries Holdings, Inc. (NYSE:CF) has the advantage of producing low-cost ammonia. This will aid the company in outperforming its European competitors.

Analysts believe that some players in Europe will not be able to compete as strong demand and tight supply will cause challenges, benefiting CF Industries Holdings, Inc. (NYSE:CF). Given the macroeconomic conditions, experts find it very hard not to be bullish on U.S.-based nitrogen fertilizer stocks and even recommend them over their European competitors.

Here’s what Carillon Tower Advisers said about CF Industries Holdings, Inc. (NYSE:CF) in its Q1 2022 investor letter:

“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.”