In this article, we will look at the top 5 agriculture stocks to buy according to billionaire Mario Gabelli. If you want to read about Mario Gabelli’s investment philosophy and why he likes the agriculture industry in the current environment, you can go to Top 10 Agriculture Stocks to Buy According to Billionaire Mario Gabelli.
5. Tractor Supply Company (NASDAQ:TSCO)
GAMCO Investors’ Stake Value: $13,027,000
Percentage of GAMCO Investors’ 13F Portfolio: 0.14%
Number of Hedge Fund Holders: 41
Tractor Supply Company (NASDAQ:TSCO) is a leading retailer of products for home improvement, agriculture, lawn & garden maintenance, livestock, equine, and pet care markets. The company primarily sells its products to recreational farmers and ranchers. As of June 30, GAMCO Investors’ stake in Tractor Supply Company (NASDAQ:TSCO) is valued at $13 million, which accounts for 0.14% of its 13F portfolio.
On August 23, Tractor Supply Company (NASDAQ:TSCO) announced that it has begun the construction of a 1.2-million-square-foot distribution center, which is expected to open in the back half of 2023 and provide services for more than 300 Tractor Supply stores.
On July 27, MKM Partners analyst David Bellinger initiated coverage of Tractor Supply Company (NASDAQ:TSCO) with a Buy rating and a $230 price target. On August 19, Oppenheimer analyst Brian Nagel reiterated his $270 price target and buy-side Outperform rating on Tractor Supply Company (NASDAQ:TSCO).
At the end of Q2 2022, 41 hedge funds held stakes in Tractor Supply Company (NASDAQ:TSCO). The total value of these stakes amounted to $1.27 billion, up from $1.01 billion in the previous quarter with 43 positions.
4. Archer Daniels Midland Company (NYSE:ADM)
GAMCO Investors’ Stake Value: $29,504,000
Percentage of GAMCO Investors’ 13F Portfolio: 0.32%
Number of Hedge Fund Holders: 42
Archer Daniels Midland Company (NYSE:ADM) is a leading global food production and agricultural commodities trading company. At the close of Q2, 42 hedge funds were long Archer Daniels Midland Company (NYSE:ADM). The total stakes of these hedge funds amounted to $658.9 million. This is compared to 42 positions in Q1 2022 with stakes worth $625.6 million.
On July 26, Archer Daniels Midland Company (NYSE:ADM) announced earnings for the second quarter of fiscal 2022. The company generated a revenue of $27 billion, up 19% year over year, and beat estimates by $2.39 billion. The company reported earnings per share of $2.15 and outperformed Wall Street consensus by $0.43. As of September 16, Archer Daniels Midland Company (NYSE:ADM) has returned 24.8% to investors year to date.
Wall Street analysts are bullish on Archer Daniels Midland Company (NYSE:ADM). On July 27, Baird analyst Ben Kallo raised his price target on Archer Daniels Midland Company (NYSE:ADM) to $94 from $87 and maintained an Outperform rating on the shares. This August, Wolfe Research analyst Sam Margolin initiated coverage of Archer Daniels with a $117 price target and a buy-side Outperform rating.
As of June 30, GAMCO Investors’ stake in Archer Daniels Midland Company (NYSE:ADM) sits at $29.5 million. The investment covers 0.32% of Mario Gabelli’s 13F portfolio.
Here is what Diamond Hill Capital had to say about Archer Daniels Midland Company (NYSE:ADM) in its first-quarter 2022 investor letter:
“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.”
3. Valmont Industries, Inc. (NYSE:VMI)
GAMCO Investors’ Stake Value: $31,403,000
Percentage of GAMCO Investors’ 13F Portfolio: 0.34%
Number of Hedge Fund Holders: 26
Valmont Industries, Inc. (NYSE:VMI) is a leading global manufacturer of center pivot and linear irrigation systems for the farming and agriculture industry. The company operates through two segments: Infrastructure and Agriculture.
On July 26, Valmont Industries, Inc. (NYSE:VMI) announced that its board of directors has declared a quarterly cash dividend of $0.55 per share. The dividend is payable on October 14 to shareholders of record on September 23. As of September 16, Valmont Industries, Inc. (NYSE:VMI) has gained 15% over the past twelve months and is offering a forward dividend yield of 0.81%.
Wall Street is bullish on Valmont Industries, Inc. (NYSE:VMI). On July 18, Northcoast analyst Ryan Connors initiated coverage of Valmont Industries, Inc. (NYSE:VMI) with a Buy rating and a $300 price target. Connors is bullish on the water infrastructure industry and has a “more promising” demand outlook for companies that serve in the agriculture, irrigation, and industrial sectors.
At the close of Q2 2022, 26 hedge funds were long Valmont Industries, Inc. (NYSE:VMI) and held stakes worth $482.8 million in the company. This is compared to 23 positions in the previous quarter with stakes worth $532.6 million.
As of June 30, GAMCO Investors’ stakes in Valmont Industries, Inc. (NYSE:VMI) are valued at $31.4 million. The investment covers 0.34% of Mario Gabelli’s 13F portfolio.
2. Deere & Company (NYSE:DE)
GAMCO Investors’ Stake Value: $66,356,000
Percentage of GAMCO Investors’ 13F Portfolio: 0.72%
Number of Hedge Fund Holders: 54
Deere & Company (NYSE:DE) is a leading American manufacturer of agricultural machinery, heavy equipment, forestry machinery, diesel engines, and drivetrains that are used in heavy equipment. On August 19, Deere & Company (NYSE:DE) released earnings for the third quarter of fiscal 2022. The company reported a revenue of $13 billion, up 24.8% year over year, and ahead of estimates by $157.8 million.
Wall Street sees upside to Deere & Company (NYSE:DE). On August 24, Argus analyst John Eade raised his price target on Deere & Company (NYSE:DE) to $420 from $390 and maintained a Buy rating on the shares. On September 13, DA Davidson analyst Michael Shlisky reiterated his $455 price target and Buy rating on Deere & Company (NYSE:DE).
At the end of Q2 2022, 54 hedge funds disclosed ownership of stakes in Deere & Company (NYSE:DE). The total value of these stakes amounted to $1.58 billion. Of those, GAMCO Investors’ stakes amounted to $66.35 million. Deere & Company (NYSE:DE) is one of the top agriculture stocks that billionaire investor, Mario Gabelli is bullish on.
Here is what ClearBridge Investments had to say about Deere & Company (NYSE:DE) in its second-quarter 2022 investor letter:
“In our engagements with farm equipment maker Deere (NYSE:DE), we have followed new technology as it has developed from early promise of environmental and social benefits to market reality. In March 2022, Deere’s Chairman & CEO and CFO met with ClearBridge’s investment team in our New York offices. While prior to the pandemic we had regularly hosted the company, this meeting was among the most interesting as the relatively new CEO outlined a bold plan that placed improved environmental stewardship squarely at the center of the company’s future.
Industrial farming, at its core, is not an especially environmentally friendly enterprise. Agronomic practices have improved over time, but fertilizer, herbicide and pesticide applications and water usage remain problematic. Deere believes its precision farming technology can drive down chemical and fertilizer volumes materially —possibly by as much as 70% — as sensors and cameras attached to tractors, sprayers and combines help determine the exact level of chemicals that might be required…” (Click here to see the full text)
1. CNH Industrial N.V. (NYSE:CNHI)
GAMCO Investors’ Stake Value: $113,946,000
Percentage of GAMCO Investors’ 13F Portfolio: 1.24%
Number of Hedge Fund Holders: 25
CNH Industrial N.V. (NYSE:CNHI) is a leading multinational manufacturer of agricultural and farm machinery and is also one of Mario Gabelli’s top picks from the agriculture sector. The investment covers 1.24% of GAMCO Investors’ 13F portfolio and the stock is among the fund’s top 10 holdings.
On July 29, CNH Industrial N.V. (NYSE:CNHI) announced market-beating earnings for the fiscal second quarter of 2022. The company reported earnings per share of $0.43 and beat Wall Street expectations by $0.06. The company generated a revenue of $6.08 billion for the quarter and beat revenue estimates by $516.2 million.
Shortly after the company’s earnings release, Deutsche Bank analyst Nicole DeBlase raised her price target on CNH Industrial N.V. (NYSE:CNHI) to $17 from $16 and maintained a Buy rating on the shares.
At the close of Q2 2022, 25 hedge funds held stakes in CNH Industrial N.V. (NYSE:CNHI). The total value of these stakes amounted to $606.25 million. Of those, $113.94 million were of GAMCO Investors.
Here is what Oakmark Fund had to say about CNH Industrial N.V. (NYSE:CNHI) in its second-quarter 2022 investor letter:
“We sold our position in Iveco Group (Italy), in favor of names that, in our opinion, offer a more favorable risk/return profile. Iveco Group’s arrival in the Fund stemmed from CNH Industrial N.V. (NYSE:CNHI)’s demerger of its trucks and commercial vehicles business in early January. We continue to hold CNH Industrial as we believe it holds an attractive valuation at its current price.”
You can also take a look at Billionaire Mario Gabelli’s Top 10 Stock Picks and 10 Best Agriculture Stocks to Invest In.
