5 Best Farmland Stocks to Buy Now

In this article, we discuss the 5 best farmland stocks to buy now. If you want to read our discussion on the latest developments in the farming industry, go directly to the 10 Best Farmland Stocks to Buy Now.

5. Bunge Limited (NYSE:BG)

Number of Hedge Fund Holders: 48

Bunge Limited (NYSE:BG) is an agriculture and food company involved in transporting, storing, and selling specialty oils and milled grains to leading consumer and restaurant brands.

Sam Margolin at Wolfe Research started coverage on Bunge Limited (NYSE:BG) stock with an ‘Outperform’ rating and a target price of $127. The analyst believes the company can provide some upside on the growth guidance it shared with investors due to the favorable commodity price environment. The analyst added that the company’s expected free cash flow yield for FY23 is significantly higher than the average observed between 2015 and 2019.

Although Bunge Limited (NYSE:BG) missed revenue and adjusted EPS estimates with its Q2 2022 results, it increased its minimum FY22 adjusted EPS guidance by $0.50 to $12. Furthermore, Bunge Limited (NYSE:BG) also approved a $1.25 billion share buyback plan to be completed by 2026.

Old West Investment Management presented its insights on Bunge Limited (NYSE:BG) in its Q1 2022 investor letter. Here’s what the firm said:

“Bunge (pronounced BUN-GEE) Ltd (NYSE:BG) is one of the biggest agribusinesses and food companies in the world. There are four worldwide companies that dominate the sector, the others being Archer-Daniels-Midland Cargill, and Dreyfuss. One of our favorite ways to screen for new ideas is following insider buying. When I saw the Form 4 filed by new Bunge CEO Greg Heckman, his purchase of $9 million of BG stock intrigued me. My initial thought was the company gave him the stock as a signing bonus. I contacted BG Investor Relations and asked whether it was a signing bonus or did Heckman actually write a check for $9 million. IR assured me it was his own hard-earned money that he invested in the company he was about to run.

Heckman was a long time executive at Conagra Foods who obviously sensed opportunity at BG. One of his first moves as CEO was to move the company’s HQ from New York to St. Louis, right in the middle of America’s breadbasket. BG had been plagued for years with poor decisions by underperforming management. Heckman’s decision to move to St. Louis was indicative of a no-nonsense style and he would commence cutting expenses and selling non-core assets…” (Click here to see the full text)