Best Three Stocks in Agriculture Chemical Space: Agrium Inc. (USA) (AGU) and More

Page 1 of 2

The shale gas helped the investors to make fortunes by investing in the Agricultural chemical space. The sharp decline in natural gas prices led to a heavy cut down in the raw material costs of these companies. However, many people in the market believe that these stocks have peaked and are destined to fall given the recent rebound in the gas prices. However, bulls have stressed upon the fact that it might be true that cheap raw material prices might have been priced in the stock, but improving North American agriculture fundamentals are still likely to push up the stock prices further. Well, I’d say they have got a point to make.

Agrium Inc. (USA) (NYSE:AGU) The Street remains optimistic regarding the retail segment’s potential to optimize its store footprint and further benefit from operating leverage on the back of strong North American agriculture fundamentals. The private label sales should also continue to benefit segment margins. Improvements in the global Potash Corp./Saskatchewan (USA) (NYSE:POT) market and favorable North American nitrogen economics should support AGU’s wholesale segment. It is interesting to note that Agrium is one of the very few in this space that possess the unique feature of crossing the whole agricultural value chain. The company is also planning to expand its urea capacity starting in 2014. And if that is not enough, the third largest global nitrogen producer also has a decent dividend yield of 0.9% to offer to its investors.

Monsanto Company (NYSE:MON) Monsanto remains positioned to benefit from opportunities to enhance profitability on the back of further adaptation of stacked traits in the U.S. market in addition to the projected launch of higher margin products in the next two years. Increased biotech acres in South America with stacked traits and the potential for further expansion into Eastern Europe via Monsanto’s hybrid seed portfolio should drive increased revenue and higher margins. Monsanto has two segments: Agricultural Productivity (crop protection products, animal productivity, and environmental technologies) and Seeds & Genomics (seeds and related traits and genetic technology platforms). The Roundup herbicide is the core of Monsanto’s Agricultural Productivity segment. Monsanto’s heritage agricultural chemical business, comprised mostly of Roundup herbicide, is bottoming. Moreover, the experts like Monsanto’s technology leadership position in seeds and believe the risk/reward is favorable. The Street is positive on the company’s growth prospects as Monsanto’s pipeline of agricultural biotech products is unrivaled by competitors.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!