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, while selected niche players have seen risin sales.
Agriculture stocks, represented by the VanEck Vectors Agribusiness ETF (MOO), have underperformed the broader market. MOO has provided a total return of 15.7% over the past 12 months, below the Russell 1000's total return of 23.2%. These performance figures and all statistics in the tables below are as of December 4.
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)||70.10||25.5||12.0|
|Archer-Daniels Midland Co. (ADM)||50.57||28.1||17.9|
|Bunge Ltd. (BG)||61.47||8.6||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. For Q4 FY 2020 ended October 3, Tyson reported a 5.3% year-over-year (YOY) increase in sales and a 68.6% YOY increase in net income. The company posted the strong earnings growth despite about $200 million of direct incremental expenses related to COVID-19.
- 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.
- 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. In November, Bunge announced that it had finalized plans to sell a refinery in Rotterdam for €258 million ($312.6 million) in cash as well as a rice mill in California for an undisclosed sum.
Fastest Growing Agriculture Stocks
These are the agriculture stocks with the highest YOY earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|Fastest Growing Agriculture Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|Tyson Foods Inc. (TSN)||70.10||25.5||88.1|
|Vital Farms Inc. (VITL)||27.58||1.1||79.1|
|FMC Corp. (FMC)||121.69||15.8||23.2|
- Tyson Foods Inc.: See company description above.
- Vital Farms Inc.: Vital Farms is an agricultural food company offering ethically-produced eggs, butter, and ghee to customers in Texas and Missouri. For Q3 2020, the company saw a 56.6% increase in net revenue on YOY net income growth of 112.5%. The company said that consumers sheltering at home during the COVID-19 pandemic were a key driver in the growth of repeat purchases, as well as in the number of households choosing Vital Farms' products.
- FMC Corp.: FMC manufactures herbicides, insecticides, and other agricultural chemicals. The company serves customers around the world.
Agriculture Stocks with the Most Momentum
These are the agriculture stocks that had the highest total return over the last 12 months.
|Agriculture Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|AquaBounty Technologies Inc. (AQB)||8.06||0.4||261.4|
|The Scotts Miracle-Gro Co. (SMG)||173.83||9.7||79.3|
|Village Farms International Inc. (VFF.TO)||CA$13.71||CA$0.9||65.2|
|VanEck Vectors Agribusiness ETF (MOO)||N/A||N/A||15.7|
- AquaBounty Technologies Inc.: AquaBounty Technologies is a biotechnology company that researches and develops products that enhance aquaculture productivity. AquaBounty reported a net loss of $3.6 million for Q3 2020, increasing its losses for the first nine months of the year to $10.3 million. The company said that it is preparing for the first-ever commercial scale harvest of AquAdvantage salmon. It also has selected a location in Graves County, Kentucky as the site of its first large-scale salmon farm.
- 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.
- 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. In November, Village Farms announced that Pure Sunfarms had entered into an agreement with Medical Cannabis by Shoppers Inc. by which Pure Sunfarms will supply a range of cannabis-based products to Medical Cannabis by Shoppers' customers.
YCharts. "Financial Data." Accessed Dec. 7, 2020.
Tyson Foods Inc. "Tyson Foods Reports Strong Fourth Quarter and Fiscal 2020 Results." Accessed Dec. 7, 2020.
Bunge Ltd. "Bunge Agrees to Sell its Refinery in Rotterdam." Accessed Dec. 7, 2020.
Bunge Ltd. "Bunge agrees to sell California rice mill." Accessed Dec. 7, 2020.
Vital Farms Inc. "Vital Farms Reports Third Quarter 2020 Financial Results." Accessed Dec. 7, 2020.
AquaBounty Technologies, Inc. "AquaBounty Technologies, Inc. Announces Results for the Quarter and Nine Months Ended September 30, 2020 and Provides a Corporate Update." Accessed Dec. 7, 2020.
Village Farms International Inc. "Village Farms International's Pure Sunfarms Enters into Supply Agreement with Medical Cannabis by Shoppers Inc." Accessed Dec. 7, 2020.