5 Best Agriculture Stocks to Invest In

4. Corteva, Inc. (NYSE: CTVA)

Number of Hedge Fund Holders: 35

Corteva, Inc. (NYSE: CTVA) is an agricultural services company offering trait technologies to help enhance resistance to weather, disease, insects, and herbicides, alongside crop protection products for use against weeds, insects, and other pests, among a range of other products and services. It ranks 4th on our list of the best agriculture stocks to invest in.

This June, Deutsche Bank analyst David Begleiter commented that Corteva, Inc. (NYSE: CTVA) shares, which have already risen 60% in the past 9 months, may rise another 40-50% by the end of 2023, to $60. JP Morgan has also kept its Overweight rating on the shares with a $51 price target as of this May.

In the first quarter of 2021, Corteva, Inc. (NYSE: CTVA) had an EPS of $0.79, beating estimates by $0.14, and the company’s revenue was $4.18 billion, up 5.61% year over year and beating estimates by $342.91 million. Corteva, Inc. (NYSE: CTVA) has gained 61.74% in the past year.

As of the end of the first quarter of 2021, 35 hedge funds out of the 866 tracked by Insider Monkey held stakes in Corteva, Inc. (NYSE: CTVA) worth roughly $1.50 billion. This is compared to 38 hedge funds in the previous quarter with a stake value of about $1.39 billion.

Rhizome Partners, an investment management firm, mentioned Corteva, Inc. (NYSE: CTVA) in its first-quarter 2021 investor letter. Here’s what they said:

“We are still getting used to the higher multiples that investors will pay for larger market cap and pure play companies such as Corteva. We do understand the market’s rationale. For example, Corteva operates in a duopoly with Monsanto, owned by Bayer AG, that provides genetically modified seeds and pesticides. With some operating leverage, the company can probably grow FCF at 4-6% a year. This brings the total return close to the long-term return of the S&P 500 index of 10%. Through trial and error, we have come to appreciate how scale, higher market share, route densities, switching costs, and collaborative relationships amongst major industry players can contribute to sustained high returns on invested capital.”