One focus is engineering high-protein, neutral-tasting chickpeas, which could become a next-generation, plant-based protein source. Beyond Meat relies on yellow pea protein for its products, but it might be tempted to switch at least some supply to chickpeas if the Precision product lives up to the hype. The company provides over 20% of the global market on potash, 3% nitrogen, and 3% phosphate.
If you bought back then and didn’t sell at its all-time high of $180.43 in April 2021, I feel your pain times two. On page 7 of its presentation, Farmer Mac points out that it has just 6% of the farm sector real estate debt of $302 billion. The mortgage market is a big one, and it intends to keep gobbling up more of it in the years to come. The partnership gives New Culture the scale necessary to make an indent in the animal-free dairy products industry. Meanwhile, ADM gains access to one of the industry’s most innovative developers of animal-free dairy products.
As a result, Hawthorne’s Q1 sales declined 38% YOY to $190.6 million. CEO Jim Hagedorn remarked that the company is considering a spinoff while maintaining a minority position in Hawthorne. As a result, the non-generally accepted accounting principles (GAAP) loss came in at $48.6 million, or 88 cents per share. In comparison, the company had reported an adjusted net income of $22.2 million, or 39 cents per share, in the prior-year quarter. It currently hovers at its peak value, up 60% over the past year. Shares are trading at 7.3 times forward earnings and 1.67 times trailing sales.
The company is a regulated natural gas and propane distributor with a history that spans well over a century. It has consistently paid dividends to investors for 138 years and raised its dividend payments for the past 35 years consecutively. ASML snags about $150 million in revenue every time it sells one, and revenue is expected to climb ahead. Even with a potential recession looming, analysts are forecasting significant growth in earnings through the rest of 2022 and 2023.
In addition to being an all-around safe-bet stock, NEC is likely to continue gaining exposure to agritech businesses through future investments and acquisitions. All this makes it one of the best agriculture stocks to buy now. In fact, TipRanks reports that 17 analysts have an average price target of $403.50, which is 37% over today’s price. Mosaic has reported higher fertilizer demand from farmers in Brazil (which had an excellent 2020) and sees a big opportunity for capacity additions in that country. Inflation, war, and agricultural market trends are increasing demand and boosting fertilizer and crop prices. Fertilizers are in short supply, with 28% of fertilizers made from nitrogen coming from Russia and Ukraine, creating a surge that makes these stocks excellent hedges against rising inflation and fundamentally sound.
The 4 Best Agriculture Stocks for 2022
Economists often use the price of gasoline as a first-glance gauge of inflation. Shipping costs increase, which leads to higher end-consumer prices. The Organization of Petroleum Exporting Countries (OPEC), the world’s largest oil cartel, recently announced plans to boost oil production. The announcement sent DVN falling, giving up much of the gains it’s seen this year already. Although the stock is up 12% YTD, it’s given up more than 33% of its value in the past month. Here are some ideas for the best stocks to consider buying right now.
- For example, more than 90% of its revenue is recurring, a figure tech companies would die for.
- At Sure Dividend, we often advocate for investing in companies with a high probability of increasing their dividends each and every year.
- The best agriculture stocks depend on your portfolio and investment goals — while volatility can be ideal for day traders, long-term investors will want to look to stocks with steadier gains over time.
- Beyond Meat relies on yellow pea protein for its products, but it might be tempted to switch at least some supply to chickpeas if the Precision product lives up to the hype.
In terms of agriculture, sometimes it’s better to own the stocks of the companies that help farmers, rather than directly owning the crops or other output. So, with crop prices on the upswing, the companies that cater to agriculture (including equipment makers, seed providers and fertilizer producers) are also outperforming. That said, let’s take a look at some of the more promising companies in this sector. CVR Partners is a company that manufactures and markets nitrogen fertilizer products, which are used to increase the quality and yield of crops.
Best Agricultural Farmland Stocks: Final Thoughts
The company is best known for producing potash, nitrogen, and phosphate fertilizers, and it has benefited from surging fertilizer prices in 2021 and 2022. Its economies of scale and vertical integration give it a competitive advantage in agriculture, and investors should expect steady growth as global demand for food and biofuels continues to grow. ADM has delivered steady profit growth since 2016, and wrapped up a banner year in 2022, benefiting from strong demand for crops and biofuel, as well as elevated commodity prices. FMC Corporation is an agricultural sciences company that provides crop protection, plant health, and professional pest and turf management products.
This article will cover some of the top stores for exposure to farmland and agriculture. The price of Planet Labs’ stock has nearly halved since going public last year. However, this downward action doesn’t reflect their strong balance sheet and the unrealized value of repeat imagery of the Earth’s surface.
Its offerings include clothing, pet supplies, trailers and accessories, lawn & garden supplies, heating systems, tools, fencing, lawnmowers, and power generators. And, the growth of the global population is tied to increasing agricultural efficiency. The agricultural revolution allowed greater population growth (and led to the industrial revolution). Companies with quarterly EPS or revenue growth of over 1,000% were excluded as outliers.
Forward-looking statements, including without limitations investment outcomes and projections, are hypothetical and educational in nature. The results of any hypothetical projections can and may differ from actual investment results had the strategies been deployed in actual securities accounts. After it was founded as the Holt Manufacturing Company in the 1890s, its tractor and engine business faced fierce competition from John Deere and Ford. The Caterpillar we recognize today formed as a result of the need for road-building equipment after the passage of the American Highways Act of 1921. CAT may be a good investment due to its diversification into several industries, including agriculture and forestry. Another company focused on manufacturing agricultural auxiliaries is Caterpillar, Inc, an American firm that develops industrial technology and sells farming and earthmoving equipment.
Farmland Partners owns around 165,000 acres of land in 16 different states. Across this land, around 26 different bollinger bands strategy crops are grown by their 100+ tenants. They also manage roughly 31,000 acres of farmland for other landowners.
Deere & Company (DE)
Lastly, these companies’ revenues have witnessed a compound annual growth rate of over 10% in the past three years. That’s why Exxon Mobil is one of the best stocks you can buy to combat inflation. While other companies are looking for ways to cut costs headed into a recession, HRB is working on revamping its small-business product to increase profitability. To get a true picture of the discount the stock trades at, just look at its P/E and P/S ratios, which stand at around 5 and 1.4, respectively. First, let’s address the elephant in the room — the 123 P/B ratio.
Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. There are a number of agribusiness applications on the horizon that investors should watch for in the years ahead. AppHarvest promises to do just that since the Kentucky-based company says it distributes produce to consumers within a one-day drive of its facilities. The proximity to markets compares favorably with conventional produce, which is often imported from abroad or shipped from California. Individual investors can gain exposure to the emerging opportunity in a few ways.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Analysts covered by TipRanks have an average 51% higher price target at $137.71. Nutrien Ltd. (NTR) is the largest producer of potash and the third largest producer of nitrogen in the world. Both are essential fertilizers for the world’s major crops and have been in high demand among U.S. growers this year.
Archer-Daniels-Midland Company (NYSE:ADM)
For investors, these companies can provide a stable source of dividend income even if their stock prices decline sharply with the overall market, which has happened in recent months. However, dividends are not necessarily guaranteed, especially in difficult economic times, such as a bear market or recession. Established companies may cut dividend payments if cash is running low. The United States Department of Agriculture’s (USDA) latest farm income report estimates net farm income increased by $23.9 billion in 2021, a 25% year-over-year (YOY) increase.
A stronger dollar has also been weighing on ag commodities such as fertilizer. Since global commodities are priced in dollars, a strong dollar makes them more expensive in other currencies, bringing down the price. Even better, all 7 agriculture stocks pay dividends to shareholders, making them attractive for income investors.
After Russia’s invasion of Ukraine, several significant uncertainties make it hard to forecast the future prognosis for any business precisely. Because of the close ties between the energy and fertilizer sectors, this might have an impact on global agriculture suppliers. Russian exports of potash, ammonia, urea and other organic fertilizers https://bigbostrade.com/ have been significantly hampered due to Western sanctions on the country. Farmers worldwide are using less fertilizer and growing fewer crops due to the exorbitant fertilizer expenses. Investors who buy shares of NEC may like it for being a highly diversified company that has had joint ventures with Samsung and Lenovo in the past.