In this article, we discuss the 5 biggest agriculture stocks. If you want to read about some more agriculture stocks, go directly to Agriculture Stocks List: 25 Biggest Agriculture Stocks.
5. Archer-Daniels-Midland Company (NYSE:ADM)
Number of Hedge Fund Holders: 37
Archer-Daniels-Midland Company (NYSE:ADM) procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients in the United States, Switzerland, Cayman Islands, Brazil, Mexico, the United Kingdom, and internationally. The company principally generates revenue from merchandising and transporting agricultural commodities, and manufacturing products for use in food, beverages, feed, energy, and industrial applications, and ingredients and solutions for human and animal nutrition. The company recognized revenue from transportation service contracts of $227 million and $611 million for the three and nine months ended September 30, 2022, respectively, compared to $153 million and $408 million for the three and nine months ended September 30, 2021, respectively.
On December 14, UBS analyst Manav Gupta initiated coverage of Archer-Daniels-Midland Company (NYSE:ADM) stock with a Buy rating and $115 price target, backing the company to deliver earnings of $7.75 per share by 2026 when factoring in productivity and innovation initiatives.
Among the hedge funds being tracked by Insider Monkey, Glen Allen-based investment firm Markel Gayner Asset Management is a leading shareholder in Archer-Daniels-Midland Company (NYSE:ADM) with 1.5 million shares worth more than $117.7 million.
In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Archer-Daniels-Midland Company (NYSE:ADM) was one of them. Here is what the fund said:
“Archer-Daniels-Midland Company (NYSE:ADM) is a leading agricultural processor that also operates a global nutrition business focused on the development of ingredients and flavors for food and beverages, supplements and more. The company’s recent operating results have benefited (unfortunately) from the war in Ukraine as grain prices and agricultural markets globally experienced strong price increases. ADM is positioned well to benefit from the volatility due to its stable North American agricultural base.”
4. Tractor Supply Company (NASDAQ:TSCO)
Number of Hedge Fund Holders: 37
Tractor Supply Company (NASDAQ:TSCO) operates as a rural lifestyle retailer in the United States. On September 24, 2022, the company operated 2,027 tractor supply stores in 49 states, a consumer mobile app and an e-commerce website. In October 2022, Tractor Supply acquired 81 stores from Orscheln Farm and Home that will be rebranded to Tractor Supply by the end of 2023.
On December 5, Wells Fargo analyst Zachary Fadem maintained an Overweight rating on Tractor Supply Company (NASDAQ:TSCO) stock and raised the price target to $255 from $250, highlighting that company’s structural and idiosyncratic drivers, a healthy dose of ESG and the company’s ability to navigate a highly variable macro backdrop in fiscal 2023 may return positive results.
At the end of the third quarter of 2022, 37 hedge funds in the database of Insider Monkey held stakes worth $751 million in Tractor Supply Company (NASDAQ:TSCO), compared to 41 the preceding quarter worth $1.3 billion.
In its Q4 2021 investor letter, Wedgewood Partners, an asset management firm, highlighted a few stocks and Tractor Supply Company (NASDAQ:TSCO) was one of them. Here is what the fund said:
“Tractor Supply Company (NASDAQ:TSCO) contributed favorably to performance during the quarter. Demand from the Company’s niche, affluent rural customer base continues to surge in a post-COVID world with comparable store sales running over +40% higher compared to pre-pandemic (2019) levels. Tractor Supply is seeing growth across all channels, from its website to e-commerce which is fulfilled by its 2000-store fleet to regular in-store traffic. The Company is also managing inflation and supply chain disruptions extremely well, passing through nearly +7% of inflation on consumable goods and managing a quarterly inventory in-stock rate that was higher than pre-pandemic. Tractor Supply is an exceptional retailer, and we continue to hold it as a top position.”
3. Bunge Limited (NYSE:BG)
Number of Hedge Fund Holders: 48
Bunge Limited (NYSE:BG) operates as an agribusiness and food company worldwide. On December 14, UBS analyst Manav Gupta initiated coverage of Bunge Limited (NYSE:BG) stock and with a Buy rating and $133 price target, noting that market is primarily focused on margin compression in 2024-2025 while ignoring the $13.50-plus per share in earnings Bunge should deliver in 2022.
At the end of the third quarter of 2022, 48 hedge funds in the database of Insider Monkey held stakes worth $763 million in Bunge Limited (NYSE:BG), compared to 48 in the previous quarter worth $729 million.
In its Q1 2022 investor letter, Old West Investment Management, an asset management firm, highlighted a few stocks and Bunge Limited (NYSE:BG) was one of them. Here is what the fund said:
“Bunge (pronounced BUN-GEE) Ltd (NYSE:BG) is one of the biggest agribusinesses and food companies in the world. Four worldwide companies dominate the sector, the others being Archer-Daniels-Midland Cargill and Dreyfuss. One of our favorite ways to screen for new ideas is following insider buying. When I saw Form 4 filed by new Bunge CEO Greg Heckman, his purchase of $9 million of BG stock intrigued me. My initial thought was the company gave him the stock as a signing bonus. I contacted BG Investor Relations and asked whether it was a signing bonus or did Heckman write a check for $9 million. IR assured me it was his own hard-earned money that he invested in the company he was about to run.
Heckman was a long-time executive at Conagra Foods who sensed an opportunity at BG. One of his first moves as CEO was to move the company’s HQ from New York to St. Louis, right in the middle of America’s breadbasket. BG had been plagued for years with poor decisions by underperforming management. Heckman’s decision to move to St. Louis was indicative of a no-nonsense style and he would commence cutting expenses and selling non-core assets…read more
2. Corteva, Inc. (NYSE:CTVA)
Number of Hedge Fund Holders: 50
Corteva, Inc. (NYSE:CTVA) operates in the agriculture business. In late November, the firm announced that it would acquire biologicals firm Stoller Group for $1.2 billion in cash. The maker of agricultural chemicals expects the deal to be completed in the first half of 2023 after regulatory approvals and other customary conditions. The firm said Stoller’s results will be accretive to operating EBITDA and operating EPS for next year.
On November 17, Barclays analyst Benjamin Theurer maintained an Overweight rating on Corteva, Inc. (NYSE:CTVA) stock and raised the price target to $75 from $71, noting that fiscal year 2023 is believed to show slightly more normal levels of earnings, with results beating previous performance.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in Corteva, Inc. (NYSE:CTVA) with 2.6 million shares worth more than $148.7 million.
In its Q1 2022 investor letter, Aristotle Capital Management, an asset management firm, highlighted a few stocks and Corteva, Inc. (NYSE:CTVA) was one of them. Here is what the fund said:
“Corteva, Inc. (NYSE:CTVA), one of the world’s largest seed and crop protection companies, was a primary contributor for the quarter. Due to its respected brand and the value-added benefits of its patented seeds and crop protection solutions for farmers, Corteva has been able to more than offset input cost inflation with sustainable price increases. In addition, the company’s ongoing mix shift to higher-margin, premium products, a catalyst we previously identified, is aiding both sales and profit growth. Shares were likely also buoyed by the rise in crop prices. Market participants, perhaps eager to chase short-term trends, poured into the sector. At Aristotle Capital, we look past such gyrations and, as long-term investors, do not attempt to predict short-term changes in commodity prices. We remain excited about what we view to be high-quality characteristics and fundamental improvements that permeate Corteva’s business, not the least of which include its pricing power.”
1. Nutrien Ltd. (NYSE:NTR)
Number of Hedge Fund Holders: 52
Nutrien Ltd. (NYSE:NTR) provides crop inputs and services. It offers potash, nitrogen, phosphate, and sulfate products; and financial solutions. Nutrien Ltd reported that in the first quarter, their potash sales in tonnes were $14.5 million. The nitrogen sales in tonnes was $10.7 million.
On November 17, Barclays analyst Benjamin Theurer maintained an Overweight rating on Nutrien Ltd. (NYSE:NTR) stock and lowered the price target to $95 from $105.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm First Eagle Investment Management is a leading shareholder in Nutrien Ltd. (NYSE:NTR) with 8.4 million shares worth more than $701.8 million.
In its Q3 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Nutrien Ltd. (NYSE:NTR) was one of them. Here is what the fund said:
“However, we believe this is exactly the kind of environment that separates the highest-quality companies from their peers and allows them to strengthen their competitive positioning. For example, Nutrien Ltd. (NYSE:NTR), a Canadian fertilizer company, was a top contributor during the quarter. While the war in Ukraine and economic sanctions on Russia have significantly reduced the output of two of the world’s largest agricultural producers, Nutrien has benefited from a strong global agricultural cycle and from farmers seeking to increase their output and capitalize on higher agricultural prices.”
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