2 Top-Rated Agriculture Stocks Outperforming The Market

: NTR | Nutrien Ltd. News, Ratings, and Charts

NTR – The agricultural industry is expected to see solid growth, thanks to solid demand and soaring food prices amid the high inflation and supply bottlenecks. Thus, it could be wise to invest in top-rated agriculture stocks Nutrien (NTR) and Bunge (BG), which are outperforming the market. Read on…

The agricultural industry has grown exponentially this year, driven by robust demand and high food prices. The sharp spike in food prices is mainly attributed to the Russia-Ukraine war and the rising cost of fertilizer and energy over the past year.

Curtailed food supply due to the Russia-Ukraine war and food commodity export bans by countries like Ukraine and India have worsened the supply chain disruptions. And an imbalance between the demand and supply has led to food prices surging to record highs.

Despite dropping 0.6% in May to 157.4 points, the World Food Price Index is still close to its record high of 159.7 points, which was hit in March. The surging food prices are majorly benefitting the agriculture industry. The investors’ bullish sentiment in the industry is evident from Invesco DB Agriculture ETF’s (DBA) 19.1% gains over the past year.

Given the sharp spikes in food commodity prices, adding outperforming agriculture stocks Nutrien Ltd. (NTR) and Bunge Limited (BG) could be wise. These stocks have a ‘Strong Buy’ or ‘Buy’ rating in our proprietary POWR Ratings system.

Nutrien Ltd. (NTR)

Headquartered in Saskatoon, Canada, NTR provides crop inputs and services. The company operates in four segments: Retail Ag Solutions; Potash; Nitrogen; and Phosphate. It distributes crop nutrients, crop protection products, seeds, and merchandise products in the United States, Canada, South America, and Australia through more than 2,000 retail locations.

On June 9, NTR announced its plans to increase fertilizer production capability and return additional capital to shareholders. The company will ramp up potash production to 18 million tonnes in 2025 by hiring and training roughly 350 people and investing in underground mining equipment, mine development, and loadout capacity. Also, it will repurchase an additional $2 billion shares in 2022.

On May 19, PCS Nitrogen Fertilizer L.P., a wholly-owned subsidiary of NTR, and Denbury Carbon Solutions, LLC, a wholly-owned subsidiary of Denbury Inc. (DEN), reached a term-sheet agreement under which DEN will transport and store carbon dioxide (CO2) captured from NTR’s new clean ammonia project at Geismar, Louisiana.

In the fiscal 2022 first quarter ended March 31, 2022, NTR’s sales increased 64.4% year-over-year to $7.66 billion, and its gross margin improved 181.8% from the prior-year period to $3.26 billion.

The company’s adjusted EBITDA grew 224.4% year-over-year to $2.62 billion. Its net earnings and adjusted earnings per share came in at $1.39 billion and $2.70, up 941.4% and 831% year-over-year, respectively.

The $15.22 billion consensus revenue estimate for the fiscal 2022 second quarter ending June 2022 represents a 59.5% improvement from the same period last year. Analysts expect NTR’s EPS for the current quarter to increase 186.2% year-over-year to $5.96.

The stock has gained 15.3% year-to-date and 44.4% over the past year to close the last trading session at $86.28.

NTR’s POWR Ratings reflect this promising outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

NTR has a B grade for Value, Growth, Sentiment, and Quality. Within the Agriculture industry, it is ranked #3 of 34 stocks. Click here to access additional POWR Ratings (Stability and Momentum) for NTR.

Bunge Limited (BG)

BG is a leading agribusiness and food company. The company operates through four segments: Agribusiness; Refined and Specialty Oils; Milling; and Sugar and Bioenergy. BG stores, transports, processes, and sells agricultural commodities and commodity products. It also sells packaged and bulk oils, die-cut pellets, corn milling, and non-GMO products.

On May 12, BG’s Board of Directors declared a regular quarterly cash dividend of $0.625 per common share, payable on September 2, 2022. This marks an increase of 19% ($0.01) in the quarterly cash dividend. BG’s regular cash dividend payment reflects its strong financial position and healthy cash flows.

On May 2, Bunge North America, Inc., a BG subsidiary, and Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (CVX), launched renewable fuel feedstocks joint venture. The new company will leverage BG’s expertise in oilseed processing and farmer relationships and CVX’s expertise in fuel manufacturing and marketing.

BG’s net sales from Agribusiness increased 14.7% year-over-year to $11.23 billion, and net sales from Refined & Specialty Oils grew 45.9% year-over-year to $3.98 billion in the fiscal 2022 first quarter, ended March 31, 2022. Its adjusted total segment EBIT improved 19.2% from the prior-year period to $680 million. The company’s adjusted net income per common share rose 36.1% year-over-year to $4.26.

Analysts expect BG’s revenue for the fiscal 2022 second quarter ending June 2022 to come in at $18.57 billion, representing a 20.7% rise year-over-year. The street expects the company’s EPS for the ongoing quarter to come in at $3.14, representing a growth of 20.2% year-over-year. The company has surpassed the consensus revenue and EPS estimates in each of the trailing four quarters.

BG’s shares have gained 16.7% over the past year and closed the last trading session at $93.06.

BG’s POWR Ratings reflect a strong outlook. The stock has an overall B rating, which translates to Buy in our POWR Ratings system.

BG has a grade of B for Sentiment and Growth. It is ranked #9 of 34 stocks in the Agriculture industry. Click here to see BG’s POWR Ratings for Value, Stability, Quality, and Momentum.

NTR shares were trading at $80.52 per share on Thursday afternoon, down $5.76 (-6.68%). Year-to-date, NTR has gained 7.58%, versus a -20.66% rise in the benchmark S&P 500 index during the same period.

About the Author: Mangeet Kaur Bouns

Mangeet’s keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet’s looks to help retail investors understand the underlying factors before making investment decisions. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
NTRGet RatingGet RatingGet Rating
BGGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com

:  |  News, Ratings, and Charts

Bear Market Game Plan Revealed!

The bear market has been firmly in place all year long. Just some folks didn’t get the memo til 6/13 when the S&P 500 (SPY) finally broke below the 20% decline level at 3,855 to appreciate just how bad things had become. That is the past. We need to focus on the future like how low the stocks will go...and the best trades to stay on the right side of the market action. All that and more is in Steve Reitmeister “Bear Market Game Plan”. Read on below for more...

:  |  News, Ratings, and Charts

Insiders Are Making Big Buys In Carvana – Should You?

Used car retailer Carvana (CVNA) has seen significant insider buying recently, reflecting bullish sentiments. However, given its bleak bottom-line positioning, should you invest in the stock now? Read on to find out...

:  |  News, Ratings, and Charts

Don’t Get Fooled by the Recent Market Rally

The S&P 500 (SPY) has bounced with gusto this week. Maybe the bear market is not here to stay? Ha! Don't make me laugh. This is just one in a long line of "suckers rallies" before the next leg lower. The reasons why are spelled out below in this week's market commentary...

:  |  News, Ratings, and Charts

3 Top-Rated High-Dividend Stocks Under $20

The Fed’s aggressive interest rate hikes in the face of the rising inflation are raising the possibility of the economy tipping into a recession. Given the market uncertainties, high-dividend stocks Sisecam Resources (SIRE), Grindrod Shipping (GRIN), and Alliance Resource (ARLP), which are currently trading under $20, could be an ideal investment to ensure a stable income stream. These stocks are rated Strong Buy or Buy in our proprietary rating system. Keep reading…

:  |  News, Ratings, and Charts

Don’t Get Fooled by the Recent Market Rally

The S&P 500 (SPY) has bounced with gusto this week. Maybe the bear market is not here to stay? Ha! Don't make me laugh. This is just one in a long line of "suckers rallies" before the next leg lower. The reasons why are spelled out below in this week's market commentary...

Read More Stories

More Nutrien Ltd. (NTR) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All NTR News