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Highlights
- Recently, agriculture stocks have been in the spotlight due to the tightened supply of agricultural commodities like wheat in the world market, leading to higher prices
- The Russia-Ukraine crisis has also added pressure to global food supplies against rising demand, which has sparked an interest in agricultural and agritech companies
- Nutrien’s stock grew roughly 81 per cent in the last one year
Recently, agriculture stocks have been in the spotlight due to the tightened supply of agricultural commodities like wheat in the world market, leading to higher prices.
The Russia-Ukraine crisis has also added pressure to global food supplies against rising demand, which has sparked interest in agricultural and agri-tech companies.
On that note, let us glance at the performance of two TSX agriculture stocks.
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Verde Agritech Plc (TSX:NPK)
Stocks of Verde Agritech galloped by over 21 per cent to close at C$ 8.13 apiece on Thursday, March 10. The Verde scrip jumped as high as C$ 8.18 during the session.
The NPK stock galloped by over 190 per cent year-to-date (YTD) and swelled by about 521 per cent year-over-year (YoY).
The fertilizer maker, on March 3, said that it is targeting doubling the production capacity of its Plant 2 facility, which is presently under construction, from 1.2 million tonnes per year (tpy) to 2.4 million tpy.
The agritech company added that its Plant 3 expected to see construction in 2023 “conditioned” on permits.
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Nutrien Ltd (TSX: NTR)
The stocks of Nutrien surged by seven per cent to close at C$ 130.16 apiece on Thursday. The NTR stock zoomed roughly 81 per cent in the last one year.
The fertilizer producer saw its Q4 net profit rise by 282 per cent YoY to US$ 1.2 billion in Q4 FY2021. It generated a free cash flow of US$ 1.54 million in the latest quarter, up 690 per cent YoY.
Bottom line
Verde Agritech is working on increasing its production capabilities while Nutrien claims to be well-positioned to exhibit significant growth in earnings and free cash flow this year.
However, one should be thorough about the company’s financials and growth potential before delving into any investment decisions.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
