In this article, we discuss 5 fertilizer stocks to buy today. If you want to see more stocks in this group as well background on the fertilizer market, click 10 Fertilizer Stocks to Buy Today.
5. K+S Aktiengesellschaft (OTC:KPLUY)
Number of Hedge Fund Holders: N/A
K+S Aktiengesellschaft (OTC:KPLUY) is a German company that supplies mineral products to the agricultural, industrial, and consumer applications industries. The company offers potassium chloride for crops such as corn, rice, and soybeans; as well as fertilizer specialties that are used for rapeseed or potatoes, and other chloride-sensitive crops.
Baader Helvea analyst Markus Mayer upgraded K+S Aktiengesellschaft (OTC:KPLUY) to ‘Buy’ from ‘Add’ on March 15, with a €30 price target.
Amid the Russia-Ukraine war, fertilizer and agriculture stocks have soared as worries over global food shortages took hold, and K+S Aktiengesellschaft (OTC:KPLUY) has been one of the significant gainers. The stock climbed approximately 32% in the last month. On March 10, K+S Aktiengesellschaft (OTC:KPLUY) reported FY non-GAAP EPS of €11.61. The company’s revenue increased 33.3% year-over-year to €3.2B.
4. Nutrien Ltd. (NYSE:NTR)
Number of Hedge Fund Holders: 36
Nutrien Ltd. (NYSE:NTR) is a Canadian company that supplies potash, nitrogen, phosphate, and sulfate products for crop protection. Nutrien Ltd. (NYSE:NTR) has been one of the top agribusiness gainers amid the Russia-Ukraine war, climbing roughly 38% in the last month.
On March 22, Citi analyst P.J. Juvekar raised the price target on Nutrien Ltd. (NYSE:NTR) to $126 from $89 and kept a ‘Buy’ rating on the shares. According to the analyst, the war in Ukraine has caused fertilizer prices to soar, given supply concerns in already tight markets. He increased base-case estimates on fertilizer names to account for the continuously high price dynamics.
Nutrien Ltd. (NYSE:NTR) declared a quarterly dividend of $0.48 per share on February 16, a 4.3% increase from its prior dividend of $0.46. The dividend is payable on April 14, for shareholders of record on March 31.
The Q4 database of Insider Monkey reveals that 36 hedge funds were bullish on Nutrien Ltd. (NYSE:NTR), up from 30 funds in the earlier quarter. First Eagle Investment Management is the biggest shareholder of Nutrien Ltd. (NYSE:NTR), owning 11.3 million shares worth $853.2 million.
Here is what Miller/Howard Investments had to say about Nutrien Ltd. (NYSE:NTR) in its Q1 2021 investor letter:
“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.”
3. The Mosaic Company (NYSE:MOS)
Number of Hedge Fund Holders: 46
The Mosaic Company (NYSE:MOS) is a Florida-based company that develops and sells phosphate and potash crop nutrients and fertilizers across North America and international markets. The Mosaic Company (NYSE:MOS) has benefited greatly from the Russian war on Ukraine, as the stock has gained almost 47% in the last month.
On March 22, The Mosaic Company (NYSE:MOS) disclosed Phosphates revenue for January and February of $873 million, up 37.7% year-over-year, Potash revenue of $604 million, up 104.8% year-over-year, and Mosaic Fertilizantes revenue of $870 million, up 66.4% compared to the same period last year. The sales volumes declined as shipments were impacted by rail delays in Canada and Florida.
The Mosaic Company (NYSE:MOS) declared an $0.1125 per share quarterly dividend on December 17, a 50% increase from its prior dividend of $0.075. The dividend was distributed on March 17.
Goldman Sachs analyst Adam Samuelson upgraded The Mosaic Company (NYSE:MOS) to ‘Buy’ from ‘Neutral’ on March 15, with an $83 price target. According to the analyst, the Russia/Ukraine conflict has the potential to be one of the most disruptive events across the food and agricultural supply chain in decades, and he believes The Mosaic Company (NYSE:MOS) will be a beneficiary in the current environment.
Soroban Capital Partners is a significant shareholder of the company, with 4.3 million shares worth $172.70 million. Overall, 46 hedge funds were bullish on The Mosaic Company (NYSE:MOS) at the end of the fourth quarter.
Here is what Ariel Focus Fund had to say about The Mosaic Company (NYSE:MOS) in its Q3 2021 investor letter:
“Our third quarter contributors generally fit this “happy family” description. Mosaic Company is the largest contributor to performance this year as well as our biggest holding as we go to print. The company returned +12.20% in the quarter and +56.16% so far this year. We have long believed Mosaic is well positioned to help the world feed its 7 billion people with a better diet amid finite agricultural resources. The company’s nutrients, particularly phosphates and potash, are key to improving yields on the limited number of global acres devoted to farming. Mosaic believes up to 60% of the yield on many crops is determined by the appropriate application of nutrients. For this reason, the company has remained focused on expanding its leadership position in this core fertilizer business. For several years, this concentrated effort did not show results. But in 2021, Mosaic’s focus began to pay off. Strong U.S. crop prices as well as growing transportation costs for imported fertilizer from overseas mines have led to improved earnings expectations. Last December, analysts showed a mean estimate for Mosaic 2021 EPS of $1.43. Today, those same analysts expect the company to earn $4.67! Estimates for 2022 EPS have also increased dramatically from $2.10 as of December 2020 to $4.99 today. We believe Mosaic will also continue to benefit from global inflation.”
2. Corteva, Inc. (NYSE:CTVA)
Number of Hedge Fund Holders: 42
Corteva, Inc. (NYSE:CTVA) was incorporated in 2018 and is headquartered in Indianapolis, Indiana, providing herbicides, insecticides, and nitrogen stabilizers. The company’s seed and crop protection products seek to optimize yields for farmers.
Mizuho analyst Christopher Parkinson raised the firm’s price target on Corteva, Inc. (NYSE:CTVA) to $60 from $55 on February 4 and kept a ‘Buy’ rating on the shares. The analyst remained “bullish on the CTVA story.”
Corteva, Inc. (NYSE:CTVA) published its Q4 results on February 2, reporting GAAP earnings per share of $0.22, topping market estimates by $0.20, while its $3.48 billion in revenue outperformed analysts’ predictions by roughly $30 million.
Among the hedge funds tracked by Insider Monkey, 42 funds reported owning stakes in Corteva, Inc. (NYSE:CTVA) as of December 31, compared to 41 funds in the prior quarter. Jeffrey Smith’s Starboard Value LP is the largest shareholder of Corteva, Inc. (NYSE:CTVA), with 8.90 million shares worth approximately $421 million.
Here is what Rhizome Partners had to say about Corteva, Inc. (NYSE:CTVA) in its Q1 2021 investor letter:
“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.”
1. CF Industries Holdings, Inc. (NYSE:CF)
Number of Hedge Fund Holders: 58
CF Industries Holdings, Inc. (NYSE:CF) is an Illinois-based company that supplies hydrogen and nitrogen products for energy, fertilizers, emissions control, and similar industrial applications worldwide. Amid the current macro backdrop, CF Industries Holdings, Inc. (NYSE:CF) has gained over 35% in the last month.
On March 22, analyst P.J. Juvekar from Citi raised the firm’s price target on CF Industries Holdings, Inc. (NYSE:CF) to $121 from $86 and kept a ‘Buy’ rating on the shares, citing the Russia-Ukraine conflict that has caused fertilizer prices to spike on supply chain challenges.
According to the fourth quarter database of Insider Monkey, 58 funds were bullish on CF Industries Holdings, Inc. (NYSE:CF), up from 49 funds in the prior quarter. Amid the flurry of hedge fund activity around CF Industries Holdings, Inc. (NYSE:CF), Matthew Barrett’s Glendon Capital Management is the biggest shareholder of the company, with more than 5 million shares worth $363.3 million.
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