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). Some agribusiness companies have experienced reduced demand for their products as a result of the COVID-19 pandemic and related lockdowns and other social-distancing measures.
Agriculture stocks, represented by the VanEck Vectors Agribusiness ETF (MOO), have underperformed the broader market. MOO has provided a total return of 1.4% over the past 12 months, below the Russell 1000's total return of 12.6%, as of September 21, 2020. All statistics in the tables below are as of September 22.
Here are the top 3 agriculture stocks with the best value, the fastest earnings growth, and the most momentum.
Best Value Agriculture Stocks
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.
|Best Value Agriculture Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|Tyson Foods Inc. (TSN)||59.85||21.8||12.0|
|Archer-Daniels Midland Co. (ADM)||46.51||25.8||14.8|
|CF Industries Holdings Inc. (CF)||31.61||6.8||18.2|
- Tyson Foods Inc.: Tyson Foods produces, distributes, and markets chicken, beef, pork, and prepared foods. Some of its brands include Hillshire Farm, Sara Lee, and State Fair. The company announced in early August the appointment of Dean Banks to the role of Chief Executive Officer (CEO), effective October 3, 2020. He will succeed Noel White, who will remain with the company as Executive Vice Chairman of the board of directors.
- Archer-Daniels Midland Co.: Archer-Daniels Midland procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients worldwide. The company processes oilseeds, corn, milo, oats, barley, peanuts, wheat, and more. Archer-Daniels Midland reported net earnings growth attributable to the company of 99.6% despite flat revenue in Q2 2020, which ended June 30, 2020. Earnings received a major boost from lower asset impairment charges, gains on asset sales, and early debt repayments.
- CF Industries Holdings Inc.: CF Industries is a maker and supplier of nitrogen and phosphate fertilizer products distributed globally.
Fastest Growing Agriculture Stocks
These are the agriculture stocks with the highest year-over-year (YOY) earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|Fastest Growing Agriculture Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|Bunge Ltd. (BG)||45.73||6.4||142.7|
|Archer-Daniels Midland Co. (ADM)||46.51||25.8||100.0|
|FMC Corp. (FMC)||106.45||13.8||6.8|
- 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. Bunge reported net income growth of 141.1% despite a 6.3% decline in net sales in Q2 2020, which ended June 30, 2020. Net income was boosted by lower cost of goods sold (COGS) as a share of sales. The company said that early in the quarter it experienced a steep drop in demand for foodservice and biofuel due to the COVID-19-related lockdowns and restrictions.
- Archer-Daniels Midland Co.: See above for company description.
- FMC Corp.: FMC manufactures herbicides, insecticides, and other agricultural chemicals. The company serves customers around the world.
Agriculture Stocks with the Most Momentum
These are the agriculture stocks that had the highest total return over the last 12 months.
|Agriculture Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|The Scotts Miracle-Gro Co. (SMG)||147.88||8.2||55.0|
|Deere & Co. (DE)||214.21||67.1||33.1|
|FMC Corp. (FMC)||106.45||13.8||20.7|
|VanEck Vectors Agribusiness ETF (MOO)||N/A||N/A||1.4|
- The Scotts Miracle-Gro Co.: Scotts Miracle-Gro is a multinational company offering branded consumer lawn and garden products, as well products for professional horticulture. It manufactures fertilizers, pest controls, plant foods, gardening soils, grass seed, and more. The company also provides lawn service. Scotts Miracle-Gro reported net income growth of 0.8% on net sales growth of 27.5% in Q3 of its 2020 fiscal year (FY), the three-month period that ended June 27, 2020. The company raised its guidance for companywide sales growth to a range of 26% to 28%.
- Deere & Co.: Deere & Co. manufactures and distributes equipment and machinery used in agriculture, construction, forestry, and turf care. The company announced in early September that it has completed its acquisition of Unimil, a Brazilian aftermarket service parts business serving sugarcane harvesters.
- FMC Corp.: See above for company description.
YCharts. "Financial Data." Accessed Sep. 22, 2020.
Tyson Foods Inc. "Tyson Foods Names Dean Banks to Succeed Noel White as Chief Executive Officer on October 3, 2020." Accessed Sep. 22, 2020.
Archer-Daniels Midland Co. "ADM Reports Second Quarter Earnings of $0.84 per Share, $0.85 per Share on an Adjusted Basis." Accessed Sep. 22, 2020.
Bunge Ltd. "Bunge Reports Second Quarter 2020 Results." Accessed Sep. 22, 2020.
The ScottsMiracle-Gro Co. "ScottsMiracle-Gro Announces Third Quarter Financial Results, Increased Fiscal 2020 Guidance and Approval of Special Dividend." Accessed Sep. 22, 2020.
Deere & Co. "Deere completes Unimil acquisition." Accessed Sep. 22, 2020.