We recently compiled a list of the 7 Best Agriculture Stocks to Buy Right Now. In this article, we are going to take a look at where Bioceres Crop Solutions Corp. (NASDAQ:BIOX) stands against the other agriculture stocks.
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.
Our 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).
A farmer in a field, inspecting freshly planted crop seeds using advanced biotechnological tools.
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 1st on our list of the best agriculture stocks to buy right now. While we acknowledge the potential of BIOX as an investment, 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. This article is originally published at Insider Monkey.
