Top Agriculture Stocks for Q1 2022

The agriculture industry harvests and provides agricultural commodities such as grains, livestock, sugar, soybeans, and more. Other companies in the industry produce fertilizers, packaged foods, and agricultural machinery. Examples of companies involved in agribusiness include Corteva Inc. (CTVA), Canada-based Nutrien Ltd. (NTR), and Tractor Supply Co. (TSCO).

Agriculture stocks, represented by the VanEck Vectors Agribusiness ETF (MOO), have underperformed the broader market over the past year. MOO has provided a total return of 17.3% over the past 12 months, below the Russell 1000’s total return of 23.0%, as of Jan. 11, 2022. All statistics in the tables below are also as of Jan. 11.

Here are the top 3 agriculture stocks with the best value, the fastest growth, and the most momentum.

These are the agriculture stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.

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• Bunge Ltd.: Bunge is a global agribusiness and food company. It supplies and transports agricultural commodities, including sugar ethanol, wheat, and corn. The company also processes oilseeds and grains and sells fertilizers. On Nov. 3, the company’s board of directors declared a quarterly cash dividend of $0.525 per share payable on March 2, 2022, to shareholders on record as of Feb. 16.
• Adecoagro SA: Adecoagro is an agricultural company headquartered in Luxembourg with operations primarily throughout South America. It engages in a broad range of businesses, including farming, cattle and dairy operations, sugar, ethanol and energy production. On Nov. 10, 2021, Adecoagro announced that it planned, effective Jan. 1, 2022, to distribute to its shareholders annually at least 40% of the adjusted free cash flow from operations generated during the previous year. The company said the distribution will consist of two cash dividend payments each year and stock buybacks under the company’s existing repurchase program.
• The Mosaic Co.: The Mosaic Co. is a producer and distributor of crop nutrient products. The company provides feed ingredients, concentrated phosphates, potash, and related products to the agricultural industry worldwide. Mosaic reported on Dec. 17 that it would pay a quarterly dividend of $0.1125 per share of common stock. The dividend will be paid on March 17 to shareholders as of March 3, 2022.

These are the top agriculture stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly YOY percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.

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• ICL Group Ltd.: ICL Group is an Israel-based manufacturer of fertilizers and specialty agricultural chemicals. The company sells its products to customers in the agriculture, food, and engineered materials industries in Asia. On Dec. 22, ICL Group announced the establishment of business relations that will let it supply clear brine fluids directly from Israel to the United Arab Emirates for the first time. The direct shipping is made possible by the normalization of diplomatic relations announced by Israel and the United Arab Emirates in September 2020. The sale of clear bine fluids, used in oil drilling and well completion, is expected increase significantly in 2022.
• Village Farms International Inc.: Village Farms International is a Canada-based vertically integrated greenhouse produce company. In addition to growing, producing, and distributing fresh produce to national grocers in North America, the company also produces cannabis. The company’s brands include: Village Farms Fresh, a vertically integrated greenhouse grower; Pure Sunfarms, a cannabis producer; and Balanced Health Botanicals, a CBD brand with an e-commerce platform. On Dec. 14, 2021, Village Farms announced that its common shares will no longer list or trade on the Toronto Stock Exchange (TSX), effective Dec. 31, 2021. The company cited expenses, administrative requirements, and trading volumes as reasons for the voluntary delisting from the TSX. The company’s common shares are still listed on the Nasdaq Capital Market (Nasdaq).
• Bunge Ltd.: See company description above.

These are the agriculture stocks that had the highest total return over the last 12 months.

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• ICL Group Ltd.: See company description above.
• CF Industries Holdings Inc.: CF Industries manufactures hydrogen and nitrogen products for fertilizer, clean energy, and emission abatements among other industrial applications. It operates manufacturing complexes in the U.S., Canada, and the United Kingdom. Citing a strong global market, the company on. Dec. 9 2021, sharply raised its full-year 2021 guidance for adjusted EBITDA to between $2.65 and $2.85 billion. The company is estimated to report quarterly results on Feb. 15, 2022.
• The Mosaic Co.: See company description above.

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