Are These The Best Agriculture Stocks To Invest In Right Now?
Agriculture stocks have been on the rise in the stock market in recent years. This comes as the industry has started to rebound from the global recession. However, there are still many challenges facing the sector, and it remains to be seen if the current trend will continue into the second half of 2022. One major challenge is the ongoing war between Russia and Ukraine. This has led to challenges that are making it more difficult and expensive for companies to export their goods. In addition, weather conditions have been increasingly unpredictable in recent years, which can lead to crop failures and lower yields.
Despite these challenges, agriculture stocks have outperformed the overall broader markets so far in 2022. Notably, agriculture stocks such as CF Industries Holdings Inc. (NYSE: CF) and Archer-Daniels-Midland Company (NYSE: ADM). Shares of both companies have seen their share price jump so far in 2022 by 46.81%, and 33.22% respectively. The sector is expected to benefit from continued growth in emerging markets, as well as increasing demand for healthy and organic food products.
In addition, government policies in many countries are supportive of the agriculture industry, and this is expected to continue. As a result, agriculture stocks could remain a good investment throughout the rest of 2022 and beyond. With this in mind, here are three top agriculture stocks to watch in the stock market today.
Agriculture Stocks To Watch Right Now
Deere & Company (DE Stock)
First up, Deere & Company (DE) is an American corporation that manufactures agricultural, construction, and forestry equipment. For a sense of scale, Deere & Company is the world’s largest manufacturer of agricultural equipment and also produces construction equipment, engines, and drivetrains for a variety of applications. Today, DE offers its shareholders an annual dividend yield of 1.23%. Just last month, the company reported its third-quarter 2022 financial results.
Diving in, Deere & Company reported Q3 2022 earnings per share of $6.16, with revenue of $14.1 billion. For context, Wall Street’s consensus estimates for the quarter were earnings of $6.64 per share, along with revenue of $12.9 billion. In addition, the company was able to grow revenue by 22.3% during the same period, in 2021. The company contributed this increase to higher rates of production. What’s more, DE revised its full-year earnings outlook to a range of $7.0 to $7.2 billion.
Continuing on, the company’s Chairman & CEO John May commented, “Looking ahead, we believe favorable conditions will continue into 2023 based on the strong response we have experienced to early-order programs. We are working closely with our factories and suppliers to meet higher levels of customer demand next year. Additionally, we are confident the company’s smart industrial strategy and leap ambitions will continue unlocking new value for customers through Deere’s advanced technologies and solutions.”
So far in 2022, DE stock has outperformed the overall broad markets as shares are up over 5% year-to-date. Meanwhile, ahead of Friday’s opening bell shares of DE stock are trading at $368.48 per share. With this in mind, will you be keeping close tabs on Deere & Company stock in the stock market today?
Nutrien (NTR Stock)
Next, Nutrien Ltd. (NTR) is one of the world’s largest providers of crop nutrients, specialty chemicals, and agronomic solutions. The company serves farmers in more than 40 countries across six continents. Aside from that, Nutrien produces and distributes nitrogen, phosphate, and potash products, as well as sulfur-based Nutritionals and micronutrients. In addition to crop nutrition products, Nutrien also offers a wide range of crop protection products, including herbicides, insecticides, and fungicides. Currently, NTR shareholders enjoy an annual dividend yield of 2.07%.
In August, Nutrien announced its second quarter 2022 financial results. Getting straight to it, the company posted second-quarter 2022 earnings per share of $5.85, with revenue coming in at $14.5 billion. This is compared with the consensus earnings estimate of $5.90 per share and revenue estimates of $15.0 billion. Moreover, Nutrien posted a 48.6% increase in revenue during the same period, in 2021. revenue grew 48.6% on a year-over-year basis. What’s more, the company also reported it estimates full-year 2022 earnings of $15.80 to $17.80 per share.
In addition, Nutrien’s Interim President and CEO stated in his letter to shareholders, “Nutrien delivered record earnings in the first half of 2022 due to the strength of market fundamentals, strong operating performance, the advantaged position of our global production assets and the excellent results of Retail. We generated strong results across our integrated business and demonstrated our unmatched capability to efficiently supply our customers with the products they need to help sustainably feed a growing world.”
Moving on, shares of NTR have also outperformed the broader stock market so far in 2022, with its share price increasing by over 30% year-to-date. Meanwhile, on Friday morning shares of NTR are trading at $119.42 per share. Given NTR stock’s momentum so far this year, do you think Nutrien is a good agriculture stock to buy now?
The Mosaic Company (MOS Stock)
Following that, The Mosaic Company (MOS) is one of the world’s leading producers of phosphate and potash, two essential nutrients for plant growth. The company’s products are used in agriculture, industry, and consumer goods. Today, MOS has an annual dividend yield of 1.11%. Separate from that, at the beginning of last month Mosaic Company reported its second quarter 2022 financial results.
Diving in, the company reported earnings per share of $3.64, with revenue of $5.4 billion. For context, analysts’ consensus estimates for Q2 2022 were earnings of $3.93 per share and revenue of $5.7 billion. Additionally, Mosaic Company posted a 91.8% jump in revenue during the same period, a year prior. What’s more, the company announced that its year-to-date capital return amounted to $1.1 billion, of which $1.0 billion of that was share repurchases. Also, Mosaic’s Board of Directors approved a new $2.0 billion share repurchase authorization.
“Mosaic’s second quarter results demonstrate the strength of the business,” commented Joc O’Rourke, President and CEO. “We are expanding production to help meet global demand and returning significant capital to shareholders. We expect strong fundamentals will continue for the rest of the year and into 2023.“
Similar to the other names mentioned in this article, shares of MOS stock are up over 34% so far in 2022. Meanwhile, just this week MOS stock is up another 2.67% as of Friday morning at $54.16 per share. All in all, do you think MOS stock deserves a spot on your agriculture stocks watchlist now?