Cosan Limited (USA) (CZZ), Archer Daniels Midland Company (ADM), Bunge Ltd (BG): Planting Seeds for Future Yields: 3 Stocks From the Farm Industry

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On the other hand, given that the world economy continues to recover, population continues to grow, and developed countries (especially India and China) will increase demand for commodities, Bunge Ltd (NYSE:BG) holds promising future prospects. Additionally, the firm has not yet been able to reap benefits from sugar investments made in Brazil due to climate anomalies. Such positive outlook has resulted in an increase in cash dividends.

Bunge Ltd (NYSE:BG) has demonstrated the ability to sustain itself against poor yields and reductions of operational volumes with small cash margins, leaving behind an upstream legacy since the last economic recession. Valued at 24.6 times P/E, compared to the 28.6 times industry mean, while offering promising estimates and, especially, a long and strong history, it is recommended to buy this stock.

Botton line

Price, dividends, and prospects are the main differences among the stocks presented. Bunge Ltd (NYSE:BG) is the most expensive stock, and Cosan Limited (USA) (NYSE:CZZ) the cheapest. Bunge is still coming out of the storm, while Cosan is navigating safe waters. Nevertheless, all three hold positive outlooks as the world economy returns to normal. It is just a matter of how much you want to spend, or faith that one will outperform the other. So, choosing one the three is a matter of investor preference.

Victor Selva has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Planting Seeds for Future Yields: 3 Stocks From the Farm Industry originally appeared on Fool.com.

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