5 Best Fertilizer Stocks To Buy Now

4. Nutrien Ltd. (NYSE:NTR)

Number of Hedge Fund Holders: 30    

A global food shortage, in part due to supply chain problems because of the pandemic, and climatic issues have combined to push fertilizer prices, one of the premier products of Nutrien Ltd. (NYSE:NTR), to record highs in the past few months. A ban on fertilizer export in Russia, one of the largest fertilizer producers in the world, has aided in making fertilizers expensive in Europe. Analysts predict the higher prices will lead to lower crop yields and further food shortages in the EU in the coming months. 

As countries like China and India also protect their fertilizer production, it is likely that prices in the US will remain high in 2022, benefiting firms like Nutrien Ltd. (NYSE:NTR). The firm, along with Mosaic, controls over 90% of the potash market in the US. It is also a leading producer of nitrogen-based fertilizers. 

This is why Nutrien Ltd. (NYSE:NTR) has been a hedge fund favorite for the past few years. At the end of the third quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $853 million in Nutrien Ltd. (NYSE:NTR), up from 28 in the preceding quarter worth $596 million. 

In its Q1 2021 investor letter, Miller/Howard Investments, an asset management firm, highlighted a few stocks and Nutrien Ltd. (NYSE:NTR) was one of them. Here is what the fund said:

“For the most part, performance of the stocks within the Income-Equity Strategies was skewed towards the high-performing market sectors with two exceptions – our consumer discretionary and technology stocks both did better than their broad market peers… We bought Nutrien (NTR), a producer of fertilizer, which we believe should benefit from increasing crop prices.”