In this article, we discuss the 5 best farmland and agriculture stocks to buy according to analysts. To read the detailed analysis of the industry, go directly to the 11 Best Farmland and Agriculture Stocks To Buy According to Analysts.
5. The Mosaic Company (NYSE:MOS)
Number of Hedge Fund Holders: 43
Average Analyst Price Target Upside: 29.07%
The Mosaic Company (NYSE:MOS) is a producer and marketer of concentrated phosphate and potash crop nutrients. On March 21, the company declared a quarterly dividend of $0.21, payable by June 20 to the shareholders of record on June 6. As of May 8, the stock has a dividend yield of 2.83%.
The Mosaic Company (NYSE:MOS) is among the best farmland and agriculture stocks to buy according to analysts. The stock has a consensus Buy rating among 5 analysts, and its average price target of $38.18 represents an upside of 29.07% from current levels, as of May 8.
The Mosaic Company (NYSE:MOS) was held by 43 hedge funds in the fourth quarter of 2023 and the stakes amounted to $565.181 million. AQR Capital Management is the top shareholder of the company and has a position worth $115.67 million, as of December 31, 2023.
The Mosaic Company (NYSE:MOS) was mentioned in White Brook Capital Partners’ fourth-quarter 2023 investor letter:
“The Mosaic Company (NYSE:MOS) and Green Plains (GPRE), our commodity-sensitive investments, remain substantial positions in the portfolio. The companies are a natural hedge to each other in some ways, as the price of corn is a feedstock for Green Plains while it bolsters the purchasing power of Mosaic’s customers. On the other hand, higher oil prices are a positive for Green Plains, while the opposite is true for Mosaic.
The Mosaic thesis didn’t change during 2023. The world’s potash and phosphate needs grow at a ~2% CAGR, and the price for potash and phosphate, which declined from Covid peaks during 2023, is likely to be at least stable in 2024. Mosaic continues to generate substantial free cash flow on a business with lessening capital intensity, and the balance sheet has a very manageable debt load. The Company’s CEO, Jack O’Roarke, announced his retirement at the end of 2023, but I expect the company to go from strength to strength as long-time heir apparent Bruce Bodine leads the company in 2024. I believe the company will continue to return capital to shareholders through enhanced stock buybacks while investing in high-return brownfield opportunities that will continue to grow long-term free cash flow per share. Additionally, should battery manufacturers adopt more phosphate in their batteries as Tesla and Ford have begun to do, it could significantly change the demand dynamics of one of its two products and ensure Mosaic’s significant cash flows years into the future.”
