Top Agriculture Stocks for Q1 2022

Feb 1, 2022
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The agriculture business harvests and gives agricultural commodities akin to grains, livestock, sugar, soybeans, and extra. Different corporations within the business produce fertilizers, packaged meals, and agricultural equipment. Examples of corporations concerned in agribusiness embrace Corteva Inc. (CTVA), Canada-based Nutrien Ltd. (NTR), and Tractor Provide Co. (TSCO).

Agriculture shares, represented by the VanEck Vectors Agribusiness ETF (MOO), have underperformed the broader market over the previous 12 months. MOO has offered a complete return of 17.3% over the previous 12 months, under the Russell 1000’s whole return of 23.0%, as of Jan. 11, 2022. All statistics within the tables under are additionally as of Jan. 11.

Listed here are the highest 3 agriculture shares with the very best worth, the quickest progress, and probably the most momentum.

These are the agriculture shares with the bottom 12-month trailing price-to-earnings (P/E) ratio. As a result of income may be returned to shareholders within the type of dividends and buybacks, a low P/E ratio exhibits you’re paying much less for every greenback of revenue generated.

Greatest Worth Agriculture Shares
  Worth ($) Market Cap ($B) 12-Month Trailing P/E Ratio
Bunge Ltd. (BG) 97.76 13.7 6.1
Adecoagro SA (AGRO) 7.67 0.9 7.5
The Mosaic Co. (MOS) 40.36 15.0 8.6

Supply: YCharts

  • Bunge Ltd.: Bunge is a world agribusiness and meals firm. It provides and transports agricultural commodities, together with sugar ethanol, wheat, and corn. The corporate additionally processes oilseeds and grains and sells fertilizers. On Nov. 3, the corporate’s board of administrators declared a quarterly money dividend of $0.525 per share payable on March 2, 2022, to shareholders on document as of Feb. 16.
  • Adecoagro SA: Adecoagro is an agricultural firm headquartered in Luxembourg with operations primarily all through South America. It engages in a broad vary of companies, together with farming, cattle and dairy operations, sugar, ethanol and power manufacturing. On Nov. 10, 2021, Adecoagro introduced that it deliberate, efficient Jan. 1, 2022, to distribute to its shareholders yearly at the very least 40% of the adjusted free money move from operations generated throughout the earlier 12 months. The corporate mentioned the distribution will encompass two money dividend funds every year and inventory buybacks beneath the corporate’s current repurchase program.
  • The Mosaic Co.: The Mosaic Co. is a producer and distributor of crop nutrient merchandise. The corporate gives feed elements, concentrated phosphates, potash, and associated merchandise to the agricultural business worldwide. Mosaic reported on Dec. 17 that it will pay a quarterly dividend of $0.1125 per share of frequent inventory. The dividend can be paid on March 17 to shareholders as of March 3, 2022.

These are the highest agriculture shares as ranked by a progress mannequin that scores corporations primarily based on a 50/50 weighting of their most up-to-date quarterly YOY proportion income progress and their most up-to-date quarterly YOY earnings-per-share (EPS) progress. Each gross sales and earnings are essential components within the success of an organization. Due to this fact rating corporations by just one progress metric makes a rating inclined to the accounting anomalies of that quarter (akin to modifications in tax regulation or restructuring prices) which will make one or the opposite determine unrepresentative of the enterprise basically. Firms with quarterly EPS or income progress of over 2,500% had been excluded as outliers.

Quickest Rising Agriculture Shares
  Worth ($) Market Cap ($B) EPS Progress (%) Income Progress (%)
ICL Group Ltd. (ICL) 10.83 13.9 325.0 48.7
Village Farms Worldwide Inc. (VFF) 6.38 0.6 N/A (See Firm Description) 68.3
Bunge Ltd. (BG) 97.76 13.7 132.6 39.0

Supply: YCharts

  • ICL Group Ltd.: ICL Group is an Israel-based producer of fertilizers and specialty agricultural chemical substances. The corporate sells its merchandise to clients within the agriculture, meals, and engineered supplies industries in Asia. On Dec. 22, ICL Group introduced the institution of enterprise relations that may let it provide clear brine fluids immediately from Israel to the United Arab Emirates for the primary time. The direct transport is made potential by the normalization of diplomatic relations introduced by Israel and the United Arab Emirates in September 2020. The sale of clear bine fluids, utilized in oil drilling and effectively completion, is anticipated enhance considerably in 2022.
  • Village Farms Worldwide Inc.: Village Farms Worldwide is a Canada-based vertically built-in greenhouse produce firm. Along with rising, producing, and distributing contemporary produce to nationwide grocers in North America, the corporate additionally produces hashish. The corporate’s manufacturers embrace: Village Farms Recent, a vertically built-in greenhouse grower; Pure Sunfarms, a hashish producer; and Balanced Well being Botanicals, a CBD model with an e-commerce platform. On Dec. 14, 2021, Village Farms introduced that its frequent shares will not checklist or commerce on the Toronto Inventory Alternate (TSX), efficient Dec. 31, 2021. The corporate cited bills, administrative necessities, and buying and selling volumes as causes for the voluntary delisting from the TSX. The corporate’s frequent shares are nonetheless listed on the Nasdaq Capital Market (Nasdaq).
  • Bunge Ltd.: See firm description above.

These are the agriculture shares that had the very best whole return over the past 12 months.

Agriculture Shares with the Most Momentum
  Worth ($) Market Cap ($B) 12-Month Trailing Whole Return (%)
ICL Group Ltd. (ICL) 10.83 13.9 101.9
CF Industries Holdings Inc. (CF) 69.16 14.8 64.2
The Mosaic Co. (MOS) 40.36 15.0 52.0
Russell 1000 N/A N/A 23.0
VanEck Vectors Agribusiness ETF (MOO) N/A N/A 17.3

Supply: YCharts

  • ICL Group Ltd.: See firm description above.
  • CF Industries Holdings Inc.: CF Industries manufactures hydrogen and nitrogen merchandise for fertilizer, clear power, and emission abatements amongst different industrial purposes. It operates manufacturing complexes within the U.S., Canada, and the UK. Citing a robust international market, the corporate on. Dec. 9 2021, sharply raised its full-year 2021 steering for adjusted EBITDA to between $2.65 and $2.85 billion. The corporate is estimated to report quarterly outcomes on Feb. 15, 2022.
  • The Mosaic Co.: See firm description above.
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  1. YCharts. “Monetary Information.” Accessed Jan. 11, 2022.

  2. Bunge Restricted. “Bunge Restricted Proclaims Dividend on Frequent and Desire Shares.” Accessed Jan. 16, 2022.

  3. Adecoagro SA. “Incomes Launch 3Q21, Web page 5.” Accessed Jan. 16, 2022.

  4. The Mosaic Co. “The Mosaic Firm: Mosaic Proclaims Quarterly Dividend of $0.1125 per Share.” Accessed Jan. 16, 2022.

  5. New York Occasions. “Israel and United Arab Emirates Strike Main Diplomatic Settlement.” Accessed Jan. 19, 2022.

  6. ICL Group Ltd. “ICL to Provide Clear Brine Fluids for Oil and Gasoline Drilling to the Emirates.” Accessed Jan. 16, 2022.

  7. Village Farms Worldwide. “Village Farms Worldwide to Voluntarily Delist from Toronto Inventory Alternate; Shares to Stay Listed on Nasdaq.” Accessed Jan. 16, 2022.

  8. Yahoo! Finance. “Earnings Calendar.” Accessed Jan. 19, 2022.

  9. CF Industries Holdings. “CF Industries Holdings, Inc. Raises Steering for Full Yr 2021 Adjusted EBITDA Outcomes.” Accessed Jan. 16, 2022.