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 higher costs and reduced demand for their products due to the COVID-19 pandemic, although overall the industry has outpaced the broader market in recent months.
Agriculture stocks, represented by the VanEck Vectors Agribusiness ETF (MOO), have outperformed the broader market. MOO has provided a total return of 56.7% over the past 12 months, above the Russell 1000's total return of 46.9%. All numbers throughout are as of March 10, except for the performance of the Russell 1000, which is as of March 9.
Here are the top 3 agriculture stocks with the best value, the fastest earnings 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.
|Best Value Agriculture Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|Bunge Ltd. ( BG)||79.06||11.1||10.4|
|Tyson Foods Inc. ( TSN)||72.39||26.4||12.9|
|Mission Produce Inc. ( AVO)||21.14||1.5||15.9|
- 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. For Q4 2020, the company reported net income attributable to Bunge of $551 million versus a net loss of $51 million for Q4 2019. Sales rose more than 25%. The company attributed the improvement in part to higher margins in its consumer business in Brazil and increased demand from the renewable diesel sector in North America.
- Tyson Foods Inc.: Tyson Foods produces, distributes, and markets chicken, beef, pork, and prepared foods. Some of its brands include Hillshire Farm, Sara Lee, and State Fair.
- Mission Produce Inc.: Mission Produce is a fruit farming company that specializes in producing, distributing, and selling avocados. The company serves customers around the world. In March, Mission Produce announced that it would enter the mango business by launching the first-ever program to incorporate ripening and distribution on a global and national scale. Mangos are the number one consumed fruit worldwide.
These are the agriculture stocks with the highest year-over-year (YOY) earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|Fastest Growing Agriculture Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|Deere & Co. ( DE)||352.69||110.6||137.4|
|Vital Farms Inc. ( VITL)||27.18||1.1||79.1|
|CF Industries Holdings Inc. ( CF)||48.13||10.3||60.0|
- Deere & Co.: Deere & Co. makes and sells a variety of equipment used in the agricultural, construction, forestry, commercial, and consumer markets. The company reported a 137% increase in net income on a 19.4% YOY increase in net sales and revenues for its Q1 FY 2021, ended January 31. Performance was driven by strong growth two segments: Production and Precision Ag, and Small Ag and Turf.
- Vital Farms Inc.: Vital Farms is a food company offering pasture-raised eggs, butter, and other products to U.S. consumers in selected markets.
- CF Industries Holdings Inc.: CF Industries Holdings manufactures and sells nitrogen and phosphate fertilizer products such as ammonia, urea, ammonium nitrate, and similar products. CF Industries reported a 58.2% YOY increase in net earnings on rising net sales for Q4 2020 and record volume as measured by product tons sold.
These are the agriculture stocks that had the highest total return over the last 12 months.
|Agriculture Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Village Farms International Inc. ( VFF.TO)||CA$19.08||CA$1.5||378.2|
|AquaBounty Technologies Inc. ( AQB)||6.98||0.5||265.4|
|The Mosaic Co. ( MOS)||30.78||11.7||160.9|
|VanEck Vectors Agribusiness ETF (MOO)||N/A||N/A||56.7|
- Village Farms International Inc.: Village Farms International is a Canada-based agricultural company that raises produce in greenhouses. The company's primary offerings include tomatoes, bell peppers, and cucumbers which are marketed to supermarkets. The company also owns the cannabis subsidiary Pure Sunfarms.
- AquaBounty Technologies Inc.: AquaBounty Technologies is a biotechnology company that researches and develops products that enhance aquaculture productivity.
- 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. For February 2021, Mosaic reported healthy increases in sales volumes and revenue from potash and phosphates.
YCharts. "Financial Data." Accessed Mar. 10, 2021.
Bunge Ltd. "Bunge Reports Fourth Quarter and Full-Year 2020 Results." Accessed Mar. 10, 2021.
Mission Produce Inc. "Mission Produce Enters the Mango Category." Accessed Mar. 10, 2021.
Deere & Co. "1Q 2021 Earnings Call," Page 3. Accessed Mar. 10, 2021.
CF Industries Holdings Inc. "CF Industries Holdings, Inc. Reports Full Year 2020 Net Earnings of $317 Million, EBITDA of $1,316 Million, Adjusted EBITDA of $1,350 Million." Accessed Mar. 10, 2021.
The Mosaic Co. "Mosaic Announces February 2021 Sales Revenues and Volumes." Accessed Mar. 10, 2021.