5 Best Agriculture Stocks To Invest In

3. The Mosaic Company (NYSE:MOS)

Number of Hedge Fund Holders (Q1): 66

The Mosaic Company (NYSE:MOS) is USA’s largest potash and phosphate fertilizer producer. As of August 9, the company stock is up by 34.39% on a YTD basis. Top names in the automotive industry such as Tesla, Inc. (NASDAQ:TSLA) and Ford Motor Company (NYSE:F) have opted for cobalt-free LFP batteries due to their environment-friendly nature and low cost. The Mosaic Company (NYSE:MOS) produces the phosphate necessary for the LFP batteries. Due to the huge incoming demand for LFP batteries, the global lithium iron phosphate battery is expected to grow at a CAGR of 24.6% between 2021 and 2028, making The Mosaic Company (NYSE:MOS) a safe long-term bet.

On August 3, Citi analyst P.J. Juvekar upgraded The Mosaic Company (NYSE:MOS)’s shares to Buy from Neutral and raised the price target to $61 from $57. According to the analyst, agriculture stocks are expected to outperform in the current slowing economic environment. The analyst believes that the Russian invasion of Ukraine has “upended” the agriculture and fertilizer market and will take quite a few years for the supply and demand to find a balance.

Here is what Carillon Tower Advisors had to say about The Mosaic Company (NYSE:MOS) in its Q1 2022 investor letter:

“Despite a rally near the end of the quarter, major equity indexes closed lower as fear of U.S. Federal Reserve (FED) balance sheet tapering, interest rate hikes, and war in the Ukraine sent the bulls into retreat. Supply chains eased for some goods, but remained challenged for many commodities including energy, agriculture, and fertilizer due to war and general scarcity, and also in many consumer products as semiconductors remained in short supply. Potash and phosphate fertilizer producer Mosaic (NYSE:MOS) performed strongly as war exacerbated already short supplies of key oil and gas exploration.”