5 GMO Stocks to Invest in Now

1. Corteva, Inc. (NYSE:CTVA)

Number of Hedge Fund Holders: 42

​​Corteva, Inc. (NYSE:CTVA) is an Indiana-based agribusiness that uses germplasm to optimize crop yield. In late 2021, ​​Corteva, Inc. (NYSE:CTVA) launched new genetically modified soy seeds in Brazil, where the company seeks to break Bayer Aktiengesellschaft (OTC:BAYRY)’s monopoly.

On March 22, Citi analyst P.J. Juvekar lifted the price target on ​​Corteva, Inc. (NYSE:CTVA) to $66 from $59 and maintained a Buy rating on the shares. The Russia-Ukraine conflict has caused fertilizer prices to spike on supply concerns in already tight markets, and ​​Corteva, Inc. (NYSE:CTVA) is clearly positioned to benefit, the analyst told investors in a research note. 

​​Corteva, Inc. (NYSE:CTVA) is one of the top GMO stocks on Wall Street. In the fourth quarter of 2021, 42 hedge funds were bullish on ​​Corteva, Inc. (NYSE:CTVA), compared to 41 funds in the prior quarter. Jeffrey Smith’s Starboard Value LP is the biggest shareholder of the company, with 8.90 million shares worth close to $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.”

You can also take a look at 10 Mid-Cap Stocks Hedge Funds Are Talking About and 10 Stocks to Buy Before the Next Recession. 

Follow Insider Monkey on Twitter