In this article, we presented the top 5 agriculture stocks to buy now. The list is compiled based on the hedge fund sentiment towards these stocks. To better understand why hedge fund sentiment is important when picking a stock and for a more comprehensive list, please go to Top 10 Agriculture Stocks To Buy Now.
5. Tyson Foods, Inc. (NYSE:TSN)
Tyson Foods, Inc. (NYSE:TSN) ranks fifth in our list of best agriculture stocks to buy now. During the third quarter, the number of hedge funds tracked by Insider Monkey that held shares of Tyson Foods, Inc. (NYSE:TSN) in their portfolios fell by one to 36. Among these investors, the top shareholder is Cliff Asness’ AQR Capital Management, which reported ownership of 1.93 million shares worth $115.08 million, followed by Peter Simmie’s Bristol Gate Capital Partners with a $58.95 million stake containing 991,086 shares. Other investors include Ken Griffin’s Citadel Investment Group, Bernard Horn’s Polaris Capital Management, and Steve Cohen’s Point72 Asset Management.
The stock of one of the largest processors of chicken, beef and pork in the world, is down by more than 22% since the beginning of the year as the company has been hit hard by the pandemic with several facilities closed over outbreaks. However, Tyson posted better than expected EPS and revenue for the last quarter and provided a strong full year-guidance, saying that it expects strong performance of its Beef and Pork segments and growth in Chicken and Prepared foods segments. Recently, Piper Sandler upgraded Tyson Foods, Inc. (NYSE:TSN) to Overvweight from Neutral and raised the price target to $77 from $70. The analyst suggested that a reopening of the economy as a vaccine is released will boost food service sales, although eat-at-home trends will also remain strong.
4. Corteva Inc (NYSE:CTVA)
Next in line is Corteva Inc (NYSE:CTVA), in which also 36 funds disclosed long positions as of the end of September, down by three over the quarter. However, the total value of these funds’ holdings surged to $1.06 billion from $775.39 million a quarter earlier. The increase is mainly due to Jeffrey Smith’s Starboard Value adding Corteva to its portfolio during the third quarter. In its latest 13F, Starboard disclosed ownership of 11.71 million shares of the company worth $337.38 million. Other notable shareholders of Corteva include Ricky Sandler’s Eminence Capital, John Petry’s Sessa Capital, Brandon Haley’s Holocene Advisors, and Larry Robbins’ Glenview Capital.
Corteva is an agricultural and seed company that was spun off from DuPont de Nemours Inc (NYSE:DD) and became an independent public company in 2019. The company’s stock has appreciated by nearly 35% since the beginning of the year. In its latest financial report, Corteva posted an adjusted net loss of $0.39, which topped the consensus estimate by $0.03, while revenue of $2.07 billion increased by 6.7% on the year and beat the estimates by $160 million. The company also reiterated its full-year guidance that includes net revenue growth between 1% and 2% and operating EPS between $1.25 and $1.45.
3. FMC Corp (NYSE:FMC)
There were 41 funds in our database that held long positions in FMC Corp (NYSE:FMC) at the end of the third quarter, compared to 42 funds a quarter earlier. Among these, Ross Turner’s Pelham Capital and Glenview Capital are the top shareholders, with positions worth $128.36 million and $73.56 million, respectively.
FMC Corp (NYSE:FMC) is another chemical company with a focus on agriculture. Since the beginning of the year, shares of the company advanced by nearly 22%, as FMC Corp managed to beat the earnings estimates for at least the past four quarters, although it missed revenue expectations for the last two. Most recently, FMC Corp (NYSE:FMC) declared a quarterly dividend of $0.48 per share, which represents an increase of 9.1% from the previous one. This gives the stock a forward yield of 1.62%.
2. Bunge Ltd (NYSE:BG)
Then there is Bunge Ltd (NYSE:BG), a diversified agribusiness that is involved in acquisition, sale, storing, transportation and processing of grains and oilseeds that is used to produce protein for animal feed and edible oil products for commercial customers. It is also involved in production of ethanol and selling of fertilizers. Bunge Ltd (NYSE:BG) has been reporting mixed results for the past several quarters and its stock has been up by 7% since the beginning of the year and by nearly 88% since March 23. A month ago, Bunge said it would sell its refinery in Rotterdam to Neste Corporation for 285 million euro ($345.5 million) in cash. The deal is expected to close in the first quarter of 2021 and the facility will be then leased from Neste in phased transition that is expected to be completed by 2024.
In Bunge Ltd (NYSE:BG), there are also 41 funds holding long positions based on the latest round of 13F filings, although this number went up by four over the quarter. The largest shareholder of Bunge among the funds we track is Louis Bacon’s Moore Global Investments with a $133.32 million stake followed by Phill Gross and Robert Atchinson’s Adage Capital Management with a $132.46 million position. Israel Englander’s Millennium Management is on the third sport with a $90.76 million stake, after having raised it by more than 50% during the third quarter.
1. Deere & Company (NYSE:DE)
Last but not least, Deere & Company (NYSE:DE) is the most popular agricultural stock among the funds tracked by Insider Monkey. Between July and September, the number of funds bullish on the stock went up by 10 to 42 and the total value of their holdings surged to $1.31 billion from $839.88 million. Jean-Marrie Eveillard’s First Eagle Investment Management holds the largest position, which contains 3.95 million shares worth $875.39 million, followed by Edgar Wachenheim’s Greenhaven Associates with 2.02 million shares worth $447.22 million. Other top shareholders are Tom Gayner’s Markel Gayner Asset Management, Ian Simm’s Impax Asset Management, and Ric Dillon’s Diamond Hill Capital.
Deere & Company (NYSE:DE)’s stock surged by more than 43% since the beginning of the year amid the company posting better than expected financial results, but also showing a revenue decline for the past four quarters, which could partially be attributed to the coronavirus pandemic. However, for the latest quarter, the decline narrowed do just 0.51% on the year with revenue amounting to $8.66 billion and beating the estimates by $1.04 billion. At the same time, the company’s fiscal fourth-quarter (ended November 3) EPS of $2.57 was higher than the expected $1.25. For the current fiscal year, Deere said it will benefit from improving conditions in agriculture, construction and forestry markets. Company’s CEO John May said that there is a renewed optimism in the agricultural sector, which should result in higher demand for farm equipment.
Please also see 10 largest agriculture companies in the world and top 20 agriculture producing countries.
Disclosure: None.
