5 Best Farmland and Agriculture Stocks To Buy Heading Into 2023

In this article, we discuss 5 best farmland and agriculture stocks to buy heading into 2023. If you want to see more stocks in this selection, check out 11 Best Farmland and Agriculture Stocks To Buy Heading Into 2023. 

5. Tractor Supply Company (NASDAQ:TSCO)

Number of Hedge Fund Holders: 37

Tractor Supply Company (NASDAQ:TSCO) is a Tennessee-based company that offers a selection of merchandise, including equine, livestock, and pet animal products, heating products, lawn and garden items, power equipment, and maintenance products for agricultural and rural use. It is one of the premier agriculture stocks to buy heading into 2023. Tractor Supply Company (NASDAQ:TSCO) paid a quarterly dividend per share of $0.92 to shareholders on December 6. 

On December 19, Credit Suisse analyst Karen Short initiated coverage of Tractor Supply Company (NASDAQ:TSCO) with an Outperform rating and a $260 price target. Tractor Supply Company (NASDAQ:TSCO) is a “best-in-class retailer gaining significant share in a needs-based, highly fragmented sector within retail,” the analyst told investors in a research note. Consumables, usables, and edibles are “arguably very defensive,” and these categories account for more than 50% of the company’s sales, noted the analyst.

According to Insider Monkey’s data, 37 hedge funds were bullish on Tractor Supply Company (NASDAQ:TSCO) at the end of September 2022, compared to 41 funds in the prior quarter. Select Equity Group held the largest stakeholder of the company, with 2.2 million shares worth $413 million.  

Here is what Wedgewood Partners has to say about Tractor Supply Company (NASDAQ:TSCO) in its Q4 2021 investor letter:

“Tractor Supply contributed favorably to performance during the quarter. Demand from the Company’s niche, affluent rural customer base continues to surge in a post-COVID world with comparable store sales running over +40% higher compared to pre-pandemic (2019) levels. Tractor Supply is seeing growth across all channels, from its website to e-commerce that is fulfilled by its 2000-store fleet to regular in-store traffic. The Company is also managing inflation and supply chain disruptions extremely well, passing through nearly +7% of inflation on consumable goods and managing a quarterly inventory in-stock rate that was actually higher than pre-pandemic. Tractor Supply is an exceptional retailer, and we continue to hold it as a top position.”