7 Best Agriculture Stocks to Buy Right Now

3. Sociedad Química y Minera de Chile S.A. (NYSE:SQM)

Average Upside Potential According to Analysts: 37.20%

Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is a global Chilean company that develops and produces a wide range of products for several industries, such as agriculture, health, nutrition, and renewable energy. The company produces and markets fertilizers such as potassium nitrate and sodium nitrate. Sociedad Química y Minera de Chile S.A. (NYSE:SQM) also produces lithium and iodine, which are essential for many applications.

In the first half of 2024, the company reported revenues of $2.37 billion, down from $4.31 billion during the same period last year. Despite this decline, the company saw strong sales growth in lithium, iodine, and fertilizers. Lithium and iodine businesses reached record levels. Fertilizer demand also rebounded significantly, rising more than 20% compared to last year.

The company’s recent quarterly performance can be said to be less than ideal. However, Sociedad Química y Minera de Chile S.A. (NYSE:SQM) has achieved a compound annual growth rate of 10% in revenue over the last 10 years, demonstrating resilience and adaptability.

Although Sociedad Química y Minera de Chile S.A. (NYSE:SQM) faced lower average prices for lithium due to market conditions, its long-term growth prospects remain strong. During the second quarter of 2024, the company entered into a partnership with Codelco to develop lithium assets in the Salar de Atacama until 2060. Additionally, Sociedad Química y Minera de Chile S.A. (NYSE:SQM) launched SQM International Lithium to expand its lithium business outside of Chile, further diversifying its portfolio.

Analysts currently recommend SQM stock as a buy, with a median one-year price target suggesting a potential upside of 37% from its current price.

With ongoing demand for lithium and fertilizers expected to grow, coupled with strategic partnerships and expansion plans, Sociedad Química y Minera de Chile S.A. (NYSE:SQM) presents a compelling opportunity for investors looking for growth.