In this article, we will explore the 8 best fertilizer stocks to buy now.
An Overview of the Fertilizer Industry
The fertilizer industry is a crucial sector in agriculture that focuses on the production and distribution of substances that enhance plant growth. By supplying necessary nutrients, fertilizers help improve crop yields and quality, which are essential for feeding the growing global population.
The industry has evolved significantly over time, with modern practices relying heavily on chemically manufactured fertilizers to support large-scale farming and meet the global demand for food. According to Mordor Intelligence, the global fertilizer market is estimated to have reached a value of $381.7 billion in 2024. Looking forward, the market is expected to grow at a compound annual growth rate (CAGR) of 5.99% during 2024-2030 to reach $541.2 billion by the end of the forecast period.
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There is a strong sense of optimism within the industry. The Fertilizer Institute’s 2023 Industry Trends Survey highlighted a positive outlook within the fertilizer sector, with many respondents expressing confidence in future growth. About 40% of those surveyed believe that market conditions have improved over the past five years, despite challenges like the COVID-19 pandemic and supply chain disruptions. Companies attribute their resilience to strategic practices such as precommitment purchases and careful planning. Nearly 80% of participants are optimistic about their businesses being equally or more profitable in the next five years.
The fertilizer industry is currently experiencing several key trends that are shaping its future. Advances in technology are transforming how fertilizers are produced and applied. Innovations such as precision agriculture, which uses data analytics and sensors, help farmers optimize fertilizer usage based on specific soil conditions and crop needs.
Additionally, there is a growing demand for fertilizers that offer more nutrients while reducing their environmental impact. The emphasis on maximizing the efficiency of fertilizer application to promote sustainable farming practices is increasing, which is driving the development of new and innovative solutions.
On August 13, CNBC reported that Windfall Bio, a California-based startup, is addressing methane emissions using “mems,” or methane-eating microbes. These microbes naturally consume methane and convert it into fertilizer. This innovative approach helps reduce harmful methane from sources like agriculture, landfills, and oil production. Farmers can use the fertilizer produced, while companies generating waste methane can sell it back to Windfall, creating a new revenue stream.
These trends indicate a dynamic shift in the fertilizer industry, balancing the need for increased food production with environmental sustainability and innovation.
With this background in mind, let’s take a look at the 8 best fertilizer stocks to buy now.
A farmer carrying a bag of fertilized over his shoulder signifying the fertilizers the company produces.
Methodology
To compile our list of the 8 best fertilizer stocks to buy now, we used the Finviz and Yahoo stock screeners to find the largest fertilizer companies. We also reviewed our own rankings and consulted various online resources to compile a list of the best fertilizer stocks.
We carefully verified our list to remove any companies that can not be classified as fertilizer stocks. From an initial pool of over 15 fertilizer stocks, we focused on the stocks that analysts believe possess the greatest potential for growth. Finally, we ranked the 8 best fertilizer stocks to buy now based on their average price target upside potential according to analysts, as of November 18, 2024.
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8 Best Fertilizer Stocks To Buy Now
8. The Scotts Miracle-Gro Company (NYSE:SMG)
Average Upside Potential According to Analysts: 5.56%
The Scotts Miracle-Gro Company (NYSE:SMG) is a major marketer of branded consumer lawn and garden products, including fertilizers, plant foods, and grass seed. SMG ranks among the best fertilizer stocks to buy now.
In recent years, the company faced significant challenges, including high debt and a cost structure that became unsustainable after pandemic-driven demand. However, The Scotts Miracle-Gro Company (NYSE:SMG) took decisive actions to address these issues. The company cut over $400 million in operating expenses and streamlined its Hawthorne Gardening Company to make it smaller and more profitable. These efforts allowed the company to maintain its dividend and avoid issuing additional shares.
Fiscal 2024 marked a turning point for the company as it shifted from crisis management to focusing on future growth. The Scotts Miracle-Gro Company (NYSE:SMG) achieved adjusted EBITDA growth of 20%, reaching $539 million, despite a challenging lawn and garden market.
In the fourth quarter of 2024, which ended on September 30, The Scotts Miracle-Gro Company (NYSE:SMG) reported total net sales of $414.7 million, an 11% increase year-over-year. Sales in the US Consumer segment rose by 54%, reaching $309.7 million compared to $201 million in the same quarter last year. This growth was largely due to improved shipment timing compared to the prior year.
Looking ahead, the company plans to invest at least $200 million annually in advertising and marketing to drive consistent growth of around 3% each year. The Scotts Miracle-Gro Company (NYSE:SMG) aims to improve gross margins to the mid-30% range and reduce leverage to approximately 3x by the end of fiscal 2027.
In fiscal year 2025, The Scotts Miracle-Gro Company (NYSE:SMG) plans to expand its Miracle-Gro Organic line to offer a complete range of products, including plant food and soils for both indoor and outdoor use. The company aims to take a more aggressive stance against competitors by enhancing advertising, introducing new branded solutions, and pursuing strategic mergers and acquisitions where it makes sense financially. Additionally, the company will launch a new O.M. Scotts & Son natural lawn fertilizer and grass seed, featuring eco-friendly packaging made from curbside recyclable paper. This initiative emphasizes the company’s commitment to sustainability and its mission to promote better gardening practices.
With a strong commitment to innovation and efficiency, along with a clear strategy for growth, The Scotts Miracle-Gro Company (NYSE:SMG) is well-positioned for future success.
7. The Mosaic Company (NYSE:MOS)
Average Upside Potential According to Analysts: 16.23%
The Mosaic Company (NYSE:MOS) is one of the world’s largest producers and marketers of concentrated phosphate and potash fertilizers. As a single-source provider, the company plays a crucial role in the agriculture industry, helping farmers maintain healthy soils and maximize crop yields. The Mosaic Company (NYSE:MOS) mines, produces, and distributes millions of tonnes of high-quality fertilizers each year.
In its third quarter of 2024, the company reported revenues of $2.8 billion, a decrease of 21% compared to the same quarter last year, largely due to lower selling prices. However, The Mosaic Company (NYSE:MOS) achieved a net income of $122 million in Q3 2024, recovering from a net loss of $4 million in Q3 2023. This improvement reflects the resilience Mosaic has built over time, allowing it to bounce back from recent weather-related disruptions.
The Mosaic Company (NYSE:MOS) is focused on strategic capital allocation and has made significant progress on projects that require low capital investment but offer high returns. The completion of the 800,000-tonne Riverview MicroEssentials capacity conversion and the 500,000-tonne Esterhazy potash compaction project in the second quarter has positioned the company well for future growth.
The Esterhazy Hydrofloat project is set to enhance milling capacity by 400,000 tonnes by mid-2025. The Mosaic Company (NYSE:MOS) also expects the construction of a 1 million-tonne blending facility in Palmeirante, Brazil to be completed in the third quarter of 2025.
The company is working on cost reduction initiatives aimed at achieving a $150 million run rate by the end of 2025. For 2024, The Mosaic Company (NYSE: MOS) is set to lower its capital expenditures by $200 million from the 2023 level.
Furthermore, The Mosaic Company (NYSE:MOS) has returned $415 million to shareholders in the first nine months of 2024. This includes share repurchases totaling $210 million.
With its strong market position, ongoing improvements in operational efficiency, and commitment to shareholder returns, The Mosaic Company (NYSE:MOS) presents an attractive investment opportunity in the fertilizer sector.
As of the third quarter of 2024, The Mosaic Company (NYSE:MOS) was held by 34 hedge funds, according to Insider Monkey’s database. Ariel Investments stated the following regarding The Mosaic Company (NYSE:MOS) in its “Ariel Focus Fund” third-quarter 2024 investor letter:
“Lastly, producer and marketer of crop nutrients, The Mosaic Company (NYSE:MOS), fell in the period on weaker than expected potash and fertilizer pricing as well as a decline in phosphate sales volumes. Electrical equipment failures and weather-related headwinds due to Hurricane Helene also weighed on shares. Management expects pricing to improve as growers continue to be incentivized to maximize yields by applying fertilizers. MOS is focused on cost discipline, free cash flow generation and paying down debt, while continuing to return significant capital to shareholders through buybacks. Given management’s disciplined capital allocation, we continue to believe the company is well positioned.”
6. Lavoro Limited (NASDAQ:LVRO)
Average Upside Potential According to Analysts: 17.88%
Lavoro Limited (NASDAQ:LVRO) is Brazil’s largest agricultural input retailer and a leading provider of biological inputs. The company operates in Brazil, Colombia, and Uruguay, offering a comprehensive portfolio that empowers farmers to adopt innovative solutions and enhance productivity. Lavoro Limited’s (NASDAQ:LVRO) Crop Care business segment is a vertically integrated producer of specialty fertilizers, crop protection products, and proprietary biological crop inputs.
The company’s strategy includes a strong focus on mergers and acquisitions. Since its inception in 2017, Lavoro Limited (NASDAQ:LVRO) has completed 24 acquisitions, quickly becoming a leader in agricultural input distribution in Brazil and Colombia. The company is also focused on strengthening its own brands of agrochemicals, foliar, fertilizers, and biological products.
In its fiscal fourth quarter of 2024, which ended on June 30, 2024, Lavoro Limited (NASDAQ:LVRO) reported a revenue of $1.89 billion, a 5% increase from the previous year. This growth was driven by market share gains and increased sales volumes, despite facing significant challenges in the Brazilian agribusiness sector, where the agricultural inputs retail market declined. The Crop Care segment stood out with a remarkable revenue increase of 24%, reaching $150.7 million for FY2024, and a gross profit of $56.1 million.
In Q4 2024 alone, Lavoro Limited’s (NASDAQ:LVRO) Crop Care revenue surged by 87% year-over-year to $19.9 million. This growth was primarily fueled by strong performance in specialty fertilizers and crop protection products.
LVRO ranks among the best fertilizer stocks to buy. Despite the challenging environment, the company’s ability to gain market share and improve its financial performance highlights its resilience. Lavoro Limited (NASDAQ:LVRO) presents an attractive opportunity for investors looking to buy into a growing fertilizer stock with significant potential for future growth.
5. Bunge Global SA (NYSE:BG)
Average Upside Potential According to Analysts: 19.37%
Bunge Global SA (NYSE:BG) is a leading agribusiness and food company that connects farmers to consumers by providing food, feed, and fuel. The company excels in oilseed processing while also being a major supplier of fertilizers in South America. Bunge Global SA (NYSE:BG) is also committed to supporting renewable energy solutions by leveraging its crop infrastructure.
On October 5, 2023, the company announced that its shareholders approved the merger with Viterra Limited, a significant player in the grains and oilseeds market. This acquisition will strengthen Bunge Global SA’s (NYSE:BG) capabilities and expand its global presence. The management expects that the transaction will close in late 2024 or early 2025.
In Q3 2024, Bunge Global SA (NYSE:BG) reported a diluted EPS of $1.56, down from $2.47 in Q3 2023. The overall results were impacted by a challenging global margin environment. However, management remains optimistic about future growth.
On October 1, 2024, the company completed the sale of its 50% stake in BP Bunge Bioenergia. This strategic move allows the company to focus on its core operations while divesting non-essential ventures. Additionally, Bunge Global SA (NYSE:BG) is developing a new palm and specialty oils facility in Avondale, Louisiana, which will enhance its service capabilities across North America.
Bunge’s (NYSE:BG) strategic initiatives and operational efficiencies position it well for future growth. BG ranks among the top 5 on our list of the best fertilizer stocks to buy now.
On October 31, TipRanks reported that Barclays analyst Benjamin Theurer reaffirmed a Buy rating on Bunge Global SA (NYSE:BG) with a price target of $115.00.
Overall, analysts have a positive outlook on Bunge Global SA (NYSE:BG). The 12-month median price target set by analysts indicates a potential increase of 19% from the stock’s current price.
4. FMC Corporation (NYSE:FMC)
Average Upside Potential According to Analysts: 26.74%
FMC Corporation (NYSE:FMC) is a prominent American agricultural sciences company that specializes in producing a variety of products, including herbicides, insecticides, and fungicides. The company also has a strong biological portfolio featuring biopesticides, biostimulants, biofertilizers, and pheromones.
The company is committed to innovation and has introduced several new products to the fertilizer and agriculture market. For instance, the Accudo biostimulant was first registered in South Korea as a bio-fertilizer for fruits and vegetables, improving root development and providing anti-fungal benefits. Another notable product is the Furagro Legend biofertilizer, which contains organic potash and is designed to enhance gene activation and expression and overall crop quality.
In the third quarter of 2024, FMC Corporation (NYSE:FMC) reported revenues of $1.07 billion, a 9% increase from Q3 2023. The company turned around from a net loss of $4 million in Q3 2023 to a net income of $66 million in the third quarter of 2024. This growth was driven by higher sales and cost reductions from restructuring efforts. New products like the fluindapyr-based fungicide also contributed significantly to this positive performance.
Analysts also have a positive outlook on FMC. The 12-month median price target set by analysts indicates a potential increase of 26% from the stock’s current price.
With strong revenue growth and effective cost management strategies, FMC Corporation (NYSE:FMC) presents an attractive investment opportunity.
3. Nutrien Ltd. (NYSE:NTR)
Average Upside Potential According to Analysts: 29.39%
Nutrien Ltd. (NYSE:NTR) is a major Canadian company in the agriculture and fertilizer sector. It is recognized as one of the largest producers of potash and nitrogen fertilizers globally. Nutrien Ltd. (NYSE:NTR) focuses on providing essential crop inputs and services, which include potash, nitrogen, and phosphate products for agricultural, industrial, and feed customers.
In June 2024, during its Investor Day, Nutrien Ltd. (NYSE:NTR) set ambitious targets for 2026 to enhance earnings and cash flow. According to the management, the company is currently on track to achieve $200 million in annual operational efficiencies by 2025, a year earlier than planned. This improvement will come from cost reductions across both its retail and corporate divisions.
The company aims to increase its production and sales of potash and nitrogen with minimal capital investment. By the end of the first three quarters of 2024, Nutrien Ltd. (NYSE:NTR) had already boosted sales volumes by 1.3 million tons, moving closer to its goal of increasing sales by 2 to 3 million tons compared to 2023 levels.
NTR is one of the top fertilizer stocks to buy. Over the past ten years, Nutrien Ltd. (NYSE:NTR) has grown its revenue at a compound annual growth rate (CAGR) of 15%, while its levered free cash flow has increased at a CAGR of 9% during the same period.
Analysts are also quite optimistic about NTR. Their 12-month price target suggests the stock could increase by 29% from its current level.
With a strong focus on operational efficiency and strategic growth initiatives, Nutrien Ltd. (NYSE:NTR) presents an attractive investment opportunity in the fertilizer market.
2. Sociedad Química y Minera de Chile S.A. (NYSE:SQM)
Average Upside Potential According to Analysts: 34.23%
Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is a Chilean company that offers a variety of products for different industries, including agriculture, health, nutrition, and renewable energy. The company is well-known for its fertilizers, particularly potassium nitrate and sodium nitrate, which are essential for enhancing crop yields. Sociedad Química y Minera de Chile S.A. (NYSE:SQM) also produces lithium and iodine.
In the first half of 2024, SQM reported revenues of $2.37 billion, a decrease from $4.31 billion in the same quarter last year. Despite this drop, the company experienced strong sales growth in its lithium, iodine, and fertilizer segments, with fertilizer demand increasing by over 20% compared to last year.
Although Sociedad Química y Minera de Chile S.A.’s (NYSE:SQM) performance in its recent quarter was less than ideal, it has demonstrated resilience with a compound annual growth rate of 10% in revenue over the past decade.
Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is one of the best fertilizer stocks to buy now. Analysts are optimistic about SQM’s future. The 12-month median price target for the stock set by analysts indicates a potential upside of 34% from the current stock price.
With ongoing demand for both lithium and fertilizers expected to rise, Sociedad Química y Minera de Chile S.A. (NYSE:SQM) presents a compelling investment opportunity.
1. Bioceres Crop Solutions Corp. (NASDAQ:BIOX)
Average Upside Potential According to Analysts: 113.82%
Bioceres Crop Solutions Corp. (NASDAQ:BIOX) is a key player in the agriculture industry that provides solutions to enhance crop yields and promote sustainable practices. The company offers a range of products, including patented seed technologies and microbial agricultural inputs. Bioceres Crop Solutions Corp. (NASDAQ:BIOX) Crop Nutrition segment features innovative solutions like nitrogen-fixing biologicals, micro-beaded fertilizers, and biofertilizers.
In the fiscal first quarter of 2025, Bioceres Crop Solutions Corp. (NASDAQ:BIOX) reported revenues of $93.3 million, down from $116.6 million in the same quarter last year. This decline was largely due to a slow start to the summer crop planting season in Argentina, affected by adverse weather conditions. The sales of micro-beaded fertilizers in Argentina faced challenges due to an unexpected change where more corn land was converted to soybeans. However, Bioceres Crop Solutions Corp. (NASDAQ:BIOX) experienced growth in North America and Brazil, demonstrating the effectiveness of its geographic diversification strategy to manage risks associated with weather fluctuations.
In Q1 2025, a notable achievement for the company was the regulatory approval of its HB4 technology for soybean production in Uruguay and Bolivia. This expands the company’s market and positions it well for future growth. Additionally, Bioceres Crop Solutions Corp. (NASDAQ:BIOX) announced that the company’s RinoTec technology received the EPA’s Green Chemistry Challenge Award, reinforcing their commitment to environmentally friendly practices.
Despite recent challenges, Bioceres Crop Solutions Corp. (NASDAQ:BIOX) has shown strong growth over the past five years with an average annual revenue growth rate of 21%. Analysts are also optimistic about BIOX, holding a consensus buy rating with a one-year price target suggesting a potential upside of 113% from current levels.
Bioceres Crop Solutions Corp. (NASDAQ:BIOX) stands out as a promising investment in the fertilizer sector due to its innovative product offerings, strategic market expansion, and commitment to sustainability.
Overall, BIOX ranks first among the 8 best fertilizer stocks to buy now. While we acknowledge the potential of fertilizer 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.
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