In this article, we will explore the 7 best agriculture stocks to buy right now.
Global Agriculture: Trends, Challenges, and Opportunities Ahead
The global agriculture market is currently experiencing significant changes driven by various factors, including population growth, climate change, and technological advancements.
According to a report by The Business Research Company, the global agriculture market was valued at $13.27 trillion in 2023. The market is expected to expand at a compound annual growth rate (CAGR) of 7.7% during 2024-2028 to reach a value of $19.28 trillion by the end of the forecast period. The agriculture market is primarily driven by the increasing demand for food due to a rapidly growing population, which is projected to reach 9.7 billion people by 2050 according to estimates by the United Nations.
Additionally, advancements in technology, such as precision agriculture and automation, are transforming farming practices, allowing for more efficient use of resources and higher crop yields.
The OECD-FAO Agricultural Outlook 2024-2033 highlights significant trends in the global agriculture market. Over the past 20 years, the demand for agricultural products has grown, primarily due to population and income increases in low- and middle-income countries. These nations have also boosted their production by adopting new technologies and better utilizing their natural resources.
Looking ahead, total consumption of agricultural and fisheries products is expected to rise by 1.0% annually over the next decade, mainly in low- and middle-income regions. Global food consumption is projected to increase by 1.2% each year, driven by population growth and rising incomes. Notably, the use of crops for animal feed is anticipated to grow faster than direct food consumption. This shift reflects a trend towards more animal-based diets, leading to increased livestock production.
In middle-income countries, daily calorie intake per person is expected to rise by 7% by 2033, fueled by higher consumption of staple foods, livestock products, and fats. On the other hand, low-income countries will see a modest 4% increase in calorie intake. This slower growth indicates challenges in achieving the Sustainable Development Goal of eliminating hunger by 2030.
High-income countries are also changing their dietary habits, with a slight decrease in fat and sugar intake as people become more health-conscious. Overall, these trends suggest that while there is growth in food consumption globally, disparities remain between different income levels.
With this background in mind, let’s take a look at the 7 best agriculture stocks to buy right now.
Methodology
To compile our list of the 7 best agriculture stocks to buy right now, we used the Finviz and Yahoo stock screeners to find the largest agriculture companies. We also reviewed our own rankings and consulted various reports to compile a list of the best agriculture stocks.
From an initial pool of over 20 agriculture stocks, we focused on the stocks that analysts believe possess the greatest potential for growth. Finally, we ranked the 7 best agriculture stocks to buy right now based on their average price target upside potential according to analysts as of November 14, 2024.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
7 Best Agriculture Stocks to Buy Right Now
7. Dole plc (NYSE:DOLE)
Average Upside Potential According to Analysts: 23.23%
Dole plc (NYSE:DOLE) is an Irish-American agricultural multinational company that is engaged in the growing, sourcing, packing, shipping, marketing, and distributing of fresh produce. It is one of the world’s largest producers of fruit and vegetables. DOLE is one of the best agriculture stocks to buy. The company operates in 30 countries and serves many more. Dole plc’s (NYSE:DOLE) supply chain is vertically integrated and spans the globe, with more than 250 facilities.
In its third quarter of 2024, the company reported a revenue of $2.1 billion, reflecting a 1% increase compared to the previous year. This growth was driven by strong operational performance across all segments, particularly in fresh fruit, which saw a 6.6% rise due to higher banana sales. However, net income dropped to $21.5 million, mainly because of a significant gain from selling a non-core asset last year.
Dole plc’s (NYSE:DOLE) strategic focus on capital allocation has allowed it to expand its operations effectively. The company announced plans to acquire two additional vessels for its fleet, enhancing its logistics capabilities and supporting future growth. Dole plc (NYSE:DOLE) is also committed to returning value to shareholders, declaring a dividend of $0.08 per share for the third quarter.
Over the past ten years, the company has demonstrated consistent growth, with revenue increasing at a compound annual growth rate (CAGR) of 11% and net income rising at 18%. The company has also grown its levered free cash flow at a CAGR of 18% during the same period.
6. Bunge Global SA (NYSE:BG)
Average Upside Potential According to Analysts: 23.78%
Bunge Global SA (NYSE:BG) is a global agribusiness and food company that ranks among the best agriculture stocks to buy right now. The company connects farmers to consumers by delivering food, feed, and fuel. Bunge Global SA (NYSE:BG) is a leader in oilseed processing and produces and supplies specialty plant-based oils and fats. The company’s products are used in many applications, including animal feed, cooking oils, bakery items, and infant nutrition. Additionally, Bunge Global SA (NYSE:BG) plays an important role in supporting renewable energy solutions by utilizing its crop infrastructure.
The company is merging with Viterra to create a global agribusiness company. On October 5, 2023, Bunge Global SA (NYSE:BG) announced that its shareholders approved the acquisition of Viterra Limited, a leading marketer and handler of grains and oilseeds with a strategic network of agricultural storage, processing and transport assets.
This merger will enhance Bunge’s (NYSE:BG) capabilities and expand its global reach. The integration planning is progressing well and the company expects to close the transaction in late 2024 or early 2025.
In the third quarter of 2024, Bunge Global SA (NYSE:BG) reported a diluted EPS of $1.56, down from $2.47 in the previous year. Despite solid performances in Agribusiness and Refined and Specialty Oils, the overall results were affected by a challenging global margin environment.
On October 1, 2024, Bunge Global SA (NYSE:BG) announced that it had completed the sale of its 50% stake in BP Bunge Bioenergia to BP, marking a shift towards focusing on core operations while offloading non-essential ventures.
Additionally, in the Q3 2024 earnings call, management shared that Bunge Global SA (NYSE:BG) is expanding its capabilities with the ongoing development of a palm and specialty oils facility in Avondale, Louisiana. This facility, which has multi-oil capabilities, is expected to enhance the company’s ability to serve customers across North America effectively.
Bunge’s (NYSE:BG) strategic initiatives and operational efficiencies position it well for future growth. Analysts currently recommend BG stock as a buy.
5. FMC Corporation (NYSE:FMC)
Average Upside Potential According to Analysts: 26.17%
FMC Corporation (NYSE:FMC) is an American agricultural sciences company. The company develops and markets a range of products, including herbicides, insecticides, and fungicides. FMC is one of the best agriculture stocks to buy right now.
In the third quarter of 2024, the company reported revenues of $1.07 billion, marking a 9% increase compared to the same period last year. FMC Corporation (NYSE:FMC) turned around from a net loss of $4 million in Q3 2023 to a net income of $66 million this quarter, thanks to higher sales and reduced costs from restructuring efforts. Notably, the introduction of new products like the fluindapyr-based fungicide commercialized in Brazil, Argentina, and Paraguay has contributed significantly to this growth.
FMC Corporation (NYSE:FMC) is also focused on improving its financial performance through aggressive cost-saving measures. The company has increased its restructuring savings target to between $125 million and $150 million for 2024, with expectations of achieving over $225 million in gross savings by 2025. This includes realigning manufacturing operations and using attrition to reduce costs.
On November 1, 2024, FMC Corporation (NYSE:FMC) announced that it has completed the sale of its Global Specialty Solutions business to Envu, a strategic move that will allow FMC to concentrate solely on its crop protection business.
In addition, FMC Corporation (NYSE:FMC) generated a free cash flow of $132 million in the third quarter, reflecting an improvement of $100 million from the previous year.
With strong revenue growth, effective cost management strategies, and a clear focus on core agricultural products, FMC Corporation (NYSE:FMC) presents an attractive investment opportunity in the agriculture sector.
4. Nutrien Ltd. (NYSE:NTR)
Average Upside Potential According to Analysts: 27.24%
Nutrien Ltd. (NYSE:NTR) is a Canadian agriculture and fertilizer company. It is one of the world’s largest producers of potash and nitrogen fertilizer. As a leading global provider of crop inputs and services, Nutrien Ltd. (NYSE:NTR) produces and distributes potash, nitrogen, and phosphate products for global agricultural, industrial, and feed customers.
During its Investor Day in June 2024, the company set ambitious performance targets for 2026 aimed at improving earnings and cash flow. Nutrien Ltd. (NYSE:NTR) has made significant progress and now plans to achieve $200 million in annual operational efficiencies by 2025, one year ahead of schedule. This efficiency will come from cost reductions across both retail and corporate sectors.
Nutrien Ltd. (NYSE:NTR) is strategically positioned to increase the production and sales of potash and nitrogen with minimal capital investment. The company aims to boost upstream sales volumes by 2 to 3 million tons compared to 2023 levels. Through the first 3 quarters of 2024, Nutrien Ltd. (NYSE:NTR) has already increased sales volumes by 1.3 million tons.
Financially, the company generated an adjusted EBITDA of $4.3 billion in the first nine months of 2024, supported by higher retail earnings, increased fertilizer volumes, and lower operating costs. As of November 5, 2024, Nutrien Ltd. (NYSE:NTR) also repurchased 1.5 million shares for approximately $75 million in the second half of 2024, demonstrating a commitment to returning value to shareholders.
With its focus on operational efficiency and strategic growth targets, Nutrien Ltd. (NYSE:NTR) presents a compelling investment opportunity in the agriculture sector.
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.
2. Vital Farms Inc. (NASDAQ:VITL)
Average Upside Potential According to Analysts: 43.86%
Vital Farms Inc. (NASDAQ:VITL) is an agriculture company that produces and sells eggs and dairy products. As a national consumer brand, the company works with family farms to offer a range of ethically produced foods in the US. Vital Farms Inc.’s (NASDAQ:VITL) products include shell eggs, butter, hard-boiled eggs, and liquid whole eggs. Their products are available in more than 24,000 stores nationwide.
In the third quarter of 2024, the company reported an impressive 31.3% increase in net revenue, reaching $145 million, compared to $110.4 million in the same quarter last year. This growth was driven by a rise in sales volume. In the first nine months of the year, the company has managed to grow its sales by 31%.
Looking ahead, Vital Farms Inc. (NASDAQ:VITL) is focused on expanding its operations. In June, the company announced plans to open a new Egg Central Station (ECS) facility in Seymour, Indiana. This facility will enhance their egg washing and packing capabilities, building on the success of their existing operations in Springfield, Missouri. The expansion is part of their strategy to reach a net revenue target of $1 billion by 2027.
Over the past 3 years, Vital Farms Inc. (NASDAQ:VITL) has managed to grow its top line at a compound annual growth rate of 34%, while its bottom line surged at an impressive CAGR of 111%.
Analysts also have a positive outlook on Vital Farms Inc. (NASDAQ:VITL). The 1-year median price target of $41.00 set by analysts indicates a potential upside of 43% from current levels.
With strong financial performance and ongoing investments in capacity growth, Vital Farms Inc. (NASDAQ:VITL) is well-positioned for future success. VITL ranks among the best agriculture stocks to buy right now.
1. Bioceres Crop Solutions Corp. (NASDAQ:BIOX)
Average Upside Potential According to Analysts: 102.49%
Bioceres Crop Solutions Corp. (NASDAQ:BIOX) is an agriculture company that develops and sells solutions to increase crop yields and make agriculture more sustainable. The company provides crop productivity solutions, including high-impact, patented technologies for seeds and microbial ag-inputs, as well as crop nutrition and protection solutions. Bioceres Crop Solutions Corp.’s (NASDAQ:BIOX) agriculture inputs are available in more than 40 countries.
In its recent fiscal first quarter of 2025, the company reported revenues of $93.3 million, down from $116.6 million in the same period last year. This decline was largely due to a slow start in Argentina’s summer crop season, impacted by delayed rains. However, Bioceres Crop Solutions Corp. (NASDAQ:BIOX) saw positive momentum in North America and Brazil, which helped offset some of the challenges faced in Argentina. This geographic diversification strategy is vital for mitigating risks associated with weather fluctuations.
Bioceres Crop Solutions Corp. (NASDAQ:BIOX) has also made significant strides in regulatory approvals, particularly for its HB4 technology, which is now fully cleared for soybean production in Uruguay and Bolivia. This achievement expands the market potential for its drought-tolerant crops, enhancing their appeal to farmers looking for resilient options.
Furthermore, the company’s RinoTec technology recently received the EPA’s Green Chemistry Challenge Award, highlighting its commitment to environmentally friendly practices. This recognition not only boosts Bioceres Crop Solutions Corp.’s (NASDAQ:BIOX) reputation but also positions it favorably in a market increasingly focused on sustainability.
While Bioceres Crop Solutions Corp. (NASDAQ:BIOX) has faced some challenges in its latest quarter, it has shown impressive growth over the past five years. The company has achieved an average annual revenue growth rate of 21% during this time.
Analysts are also bullish on BIOX. Analysts currently hold a consensus buy rating on the stock and the 1-year median price target of $13.00 set by analysts indicates a potential upside of 102% from current levels.
Overall, Bioceres Crop Solutions Corp. (NASDAQ:BIOX) demonstrates a strong commitment to innovation and sustainability, backed by a diverse product portfolio and strategic geographic expansion. These factors make it an attractive option for investors looking to buy into a forward-thinking agriculture stock with significant growth potential.
Overall, BIOX ranks first among the 7 best agriculture stocks to buy right now. While we acknowledge the potential of agriculture companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BIOX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
