5 Best Fertilizer Stocks to Buy According to Hedge Funds

In this article, we will be taking a look at the 5 best fertilizer stocks to buy according to hedge funds. To see more of these stocks, you can go directly to see the 10 Best Fertilizer Stocks to Buy According to Hedge Funds.

5. The Mosaic Company (NYSE:MOS)

Number of Hedge Fund Holders: 47

The Mosaic Company (NYSE:MOS) produces and markets concentrated phosphate and potash crop nutrients. It is based in Tampa, Florida.

Analysts at RBC Capital hold an Outperform rating on The Mosaic Company (NYSE:MOS) shares as of April 13.

The Mosaic Company (NYSE:MOS) is set to generate over $2 billion in free cash flow in 2023, translating to a 14% free cash flow yield. The company is also an attractive dividend stock with a yield of 1.7% and consistent dividend growth over the past four years as of April 16.

Insider Monkey’s data shows 47 hedge funds long The Mosaic Company (NYSE:MOS) in the fourth quarter. Their total stake value was $953 million.

Ariel Investments, an investment management company, mentioned The Mosaic Company (NYSE:MOS) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“Producer and marketer of crop nutrients, The Mosaic Company (NYSE:MOS) also traded down on weaker than expected earnings. Volumes of both potash and phosphate missed consensus expectations, prices came in below and costs were higher than expected. Hurricane Ian also negatively impacted production. As a result, management lowered its outlook for weaker than expected pricing and volume. Meanwhile, MOS is paying down debt and continues to return significant capital to shareholders through buybacks. Given management’s disciplined approach towards capital allocation, we continue to believe the company is well positioned from a risk/reward standpoint.”

4. Bunge Limited (NYSE:BG)

Number of Hedge Fund Holders: 50

Bunge Limited (NYSE:BG) is an agribusiness and food company. Its fertilizer portfolio includes single super phosphate (SSP), ammonia, urea, and ammonium thiosulfate.

Andrew Strelzik, an analyst at BMO Capital, reinstated coverage of Bunge Limited (NYSE:BG) on April 13 with an Outperform rating.

Bunge Limited (NYSE:BG) has advanced immensely with its agriculture technology, and it plans to entirely eliminate its use of mineral fertilizers by 2025 with the help of bio-inputs from bacteria and organic matter. This solution, developed from investments and research, and technology, is designed to enrich the soil with essential nutrients without the use of fertilizers.

There were 50 hedge funds long Bunge Limited (NYSE:BG) in the fourth quarter, with a total stake value of $992 million.

3. Corteva Inc (NYSE:CTVA)

Number of Hedge Fund Holders: 50

Corteva Inc (NYSE:CTVA) develops and supplies advanced germplasm and traits that product optimum yield for farms. The trait technologies offered by the company enhance crop resistance to weather, disease, insects, and more. They also provide food and nutritional characteristics.

On April 6, analysts at Oppenheimer initiated coverage of Corteva Inc (NYSE:CTVA) shares with a Perform rating.

In the fourth quarter, Corteva Inc (NYSE:CTVA) saw its seed net sales grow by 7% year-over-year, while organic sales increased by 9% over the same period. At the end of December, the company had total assets of $42.6 billion, increasing by $0.3 billion compared to the previous year.

Our hedge fund data for the fourth quarter shows 50 hedge funds long Corteva Inc (NYSE:CTVA). Their total stake value was $745 million.

2. CF Industries Holdings, Inc. (NYSE:CF)

Number of Hedge Fund Holders: 53

CF Industries Holdings, Inc. (NYSE:CF) is a manufacturer of hydrogen and nitrogen products for fertilizers and more. It is based in Deerfield, Illinois.

Analysts at Barclays hold an Overweight rating on CF Industries Holdings, Inc. (NYSE:CF) shares as of April 14.

The company is the largest producer and distributor of nitrogen fertilizers. CF Industries Holdings, Inc. (NYSE:CF) had an EPS of $4.55 in the fourth quarter, beating analyst estimates by $0.35. Its revenue of $2.61 billion increased by 2.68% year-over-year.

CF Industries Holdings, Inc. (NYSE:CF) was found among the 13F holdings of 53 hedge funds in the fourth quarter, with a total stake value of $969 million.

1. Deere & Company (NYSE:DE)

Number of Hedge Fund Holders: 63

Deere & Company (NYSE:DE) is an agricultural and farm machinery provider. It also offers planting technology that offers precise fertilizing capabilities to reduce fertilizer use on farms.

Michael Shlisky, an analyst at DA Davidson, holds a Buy rating on Deere & Company (NYSE:DE) shares as of April 14.

In the fiscal first quarter of 2023, Deere & Company (NYSE:DE) generated about $13 billion in revenues. Its net sales increased by 34% year-over-year to go above $11 billion, while its net income also more than doubled, coming in at almost $2 billion.

In total, 63 hedge funds were long Deere & Company (NYSE:DE) in the fourth quarter. Their total stake value was $3.7 billion.

ClearBridge Investments, an investment management company, mentioned Deere & Company (NYSE:DE) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“Our industrials holdings produced robust absolute returns for the quarter. While the ISM Manufacturing Index fell in November to contractionary levels, our industrial holdings have largely been able to maintain earnings due to strong competitive positions, historically large backlogs and company-specific drivers. For example, Deere & Company (NYSE:DE) continues to benefit from a strong upgrade cycle as record farmers’ income is driving broad and rapid adoption of the company’s precision agricultural equipment.”

See also Agriculture Stocks List: 25 Biggest Companies and 12 Most Advanced Countries in Agriculture Technology.