Top 5 Agri commodity stocks - ADM, MOS and 3 others to explore

Highlights

• Commodity prices soar as Russia-Ukraine war has heightened supply worries.
• Wheat prices rose to a 14-year high last week.
• Prices of many other essential commodities have also been rising.

Prices of oil, metal, and wheat have skyrocketed as the supplies from Russia and Ukraine to global markets have dwindled due to their ongoing conflict. 

Russia is the third-largest energy producer of oil besides metals like aluminum, copper, nickel, palladium, and titanium. Ukraine is a major supplier of wheat and corn besides oil. Both countries export around 25% of the world’s wheat and corn supplies.  

Wheat prices rose by over 40% last week, the highest level in 14 years. Meat prices were also expected to rise due to a possible shortage in animal feed. Commodities can be divided into four broad categories: energy, metal, agricultural, and meat & livestock. 

Also Read: Top 5 green energy stocks to watch in March: NEE to TSLA

The commodities market offers another option for investors to diversify their portfolios beyond stocks, ETFs, bonds, mutual funds, futures, currencies, and cryptocurrencies. But the market is prone to risks from an extended period of uncertainties like war, epidemic, bad weather, etc. 

Due to the current uncertainty and stress in the market, many investors are looking for safe havens like the commodity market to minimize the risk.

Here we discuss five agriculture commodity stocks.

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Archer-Daniels-Midland Company (NYSE:ADM)

Market Cap: US$47.2 billion

Closing price on March 7, 2022: US$83.97

Chicago, Illinois-based Archer Daniels Midland is a major processor of commodities, including wheat, corn, oilseeds, etc. The company owns a network of logistical assets to store and transport crops worldwide. Its supplies human and animal nutrition.

For the fiscal year ended December 31, 2021, the agri company posted revenue of US$85.25 billion versus US$64.35 billion in FY 2020. The net income was US$2.7 billion or US$4.79 per share diluted for FY 2021 versus US$1.77 billion or US$3.15 per share diluted in the previous fiscal year.

ADM stock traded at US$84.55 at 8:37 am ET on Tuesday. The stock moved in the range of US$87.99 to US$55.26 in the last 52 weeks. Its dividend yield is 1.93%, and its annualized dividend is US$1.60.

Also Read: BAC, BX, MS among top financial stocks to explore in March

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Mosaic Company (NYSE:MOS)

Market Cap: US$22.5 billion

Closing price on March 7, 2022: US$61.14

Mosaic was formed in 2004 and is based in Tampa, Florida. The company produces crop nutrients such as phosphate and potash. Its assets are located in Florida, Brazil, Peru, and New Mexico.

For the fiscal year 2021, its revenue rose 42% YoY to US$12.4 billion. The full-year net income increased by 145% to US$1.6 billion or US$4.27 per share diluted. Its adjusted EBITDA came in at US$3.6 billion.

MOS stock traded 3.91% down to US$58.75 at 8:37 am ET on Tuesday. The stock traded in the range of US$64.71 to US$28.26 in the last 52 weeks. Its dividend yield is 0.75%, and its annualized dividend is US$0.45%.

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Adecoagro S.A. (NYSE:AGRO)

Market Cap: US$1.19 billion

Closing price on March 7, 2022: US$10.59

Adecoagro’s business includes farming crops, dairy operations, and production of ethanol, sugar, energy, etc. It is based in Luxembourg.

It will release its Q4 earnings result in the extended hours of March 14, 2022.

At the end of the third quarter ended September 30, 2021, AGRO reported net sales of US$325.6 million compared to US$236.7 million in the same period of the previous year. The net income rose to US$36.9 million or US$0.316 per diluted share versus US$20.26 million or US$0.170 per diluted share in Q3, 2020. 

The AGRO stock fell 0.85% to US$10.50 in the pre-market on Tuesday. The stock moved in the range of US$11.77 to US$6.78 in one year. It has a P/E of 10.28 and a forward P/E for one year of 7.62.

Also Read: TSLA to KR: Top consumer stocks to watch in March 

Bunge Limited (NYSE:BG)

Market Cap: US$15.37 billion

Closing price on March 7, 2022: US$108.75

Bunge is an agricultural business and food company founded in 1818. The company is based in St. Louise, Missouri. Its operations include farming and food retail. It also processes oil seeds packaged vegetable oil, and other related products.

For the fiscal year of 2021, its net sales grew around 43% YoY at US$59.15 billion. The net income to common shareholders was US$2.04 billion or US$13.64 EPS diluted versus US$1.12 billion or US$7.71 EPS diluted in FY 2020.

The stock jumped 0.12% to US$108.88 at 8:38 am ET on Tuesday.

BG's stock price moved between US$112.63 and US$71.73 in the last 52 weeks. Its dividend yield is 1.94%, and its annualized dividend is US$2.10%.

Also Read: UNP, UPS among top 5 industrial stocks to keep an eye on in March

Source: Pixabay

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Andersons, Inc. (NASDAQ:ANDE)

Market Cap: US$1.52 billion

Closing price on March 7, 2022: US$46.58

Andersons Inc is an agriculture company that operates through plat nutrient, ethanol, rail, and trade segments. The company is based in Maumee, Ohio.

Anderson Inc’s fiscal year 2021 revenue was US$12.6 billion versus US$8.06 billion in FY 2020. The net income to the company came in at US$103.98 million or US$3.03 EPS diluted compared to US$7.71 million or US$0.23 EPOS diluted for FY 2020.

Its stock traded at US$46.97, up 0.84%, at 8:38 am ET on Tuesday. The stock traded between US$50.40 and US$25.20 in the last 52 weeks. ANDE’s dividend yield is 1.49%, and its annualized dividend is US$0.72%.

Also Read: DKS, CRWD, & RIVN among top five stocks to report this week

Bottomline 

Markets are volatile; investors should carefully evaluate the companies and the broader market before investing in stocks.