In this piece, we will discuss the 10 Best Fertilizer Stocks to Buy According to Hedge Funds.
Within the agriculture sector, the fertilizer industry has held a critical place, supplying essential nutrients that boost crop yields and food production. Fertilizer companies are responsible for providing users with key agricultural inputs, including nitrogen, phosphate, potash-based compounds, as well as pesticides and other biological products that enhance crop yields. Ammonia and urea, nitrogen-based fertilizers, are critical to global crop production.
Just like elsewhere, technology continues to play an important role in the fertilizer industry, improving the efficiency of fertilizer use. In this regard, McKinsey & Company noted that automation has enabled precise application, which minimizes waste and boosts sustainability. For instance, Deere’s ExactShot technology, which was launched in 2024, has the ability to reduce fertilizer use by up to 60% by applying nutrients directly to seeds during planting.
Modern technology continues to improve the efficiency of fertilizer use. McKinsey & Company highlighted that automation enables precise application, minimizing waste and boosting sustainability. Deere’s ExactShot technology, launched last year, reportedly reduces fertilizer use by up to 60% by targeting nutrients directly onto seeds during planting.
In contrast to volatile growth stocks, fertilizer stocks are often considered part of a defensive strategy by investors during times of uncertainty. However, at the same time, geopolitical factors and global trade dynamics pose significant risks to the sector. On April 28, 2025, CNBC reported that the U.S. agricultural exporters are facing great challenges due to imposed tariffs that have reduced Chinese demand. At the same time, the Agriculture Transportation Coalition described this situation as a ‘full-blown crisis,’ citing canceled orders and lost shipments. The tariffs have drastically reduced U.S.-China shipping traffic. Exporters warn that no other market exists that can quickly make up for the lost demand from China, thus posing significant risks to the sector.
Amid this uncertainty in the air, we find it essential to cover the 10 Best Fertilizer Stocks to Buy According to Hedge Funds. These shortlisted stocks demonstrate not only a strong performance but also strategic resilience, which is essential in a turbulent global market.
Kingarion/Shutterstock.com
Methodology
To curate our list of the 10 Best Fertilizer Stocks to Buy According to Hedge Funds, we used a Finviz stock screener to compile all fertilizer-related companies. Furthermore, we used Insider Monkey’s hedge fund database that tracks over 1,000 hedge fund managers’ portfolios to assess hedge fund sentiment for these stocks. The stocks are ranked in ascending order of the number of hedge funds having stakes in the respective stocks as of Q1 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
7. Enlightify Inc. (NYSE:ENFY)
Number of Hedge Fund Holders: 1
Enlightify Inc. (NYSE:ENFY) is one of the 10 Best Fertilizer Stocks to Buy According to Hedge Funds.
On June 18, 2025, Enlightify terminated its $49 million acquisition of Lonestar Dream Inc. The termination was carried out through a Mutual Rescission Agreement with Mr. Zhibiao Pan. Under the cancelled agreement, ENFY had already paid $9.95 million, which Mr. Pan is required to return within 180 days, along with waiving any future claims.
Under this new development, Enlightify Inc. (NYSE:ENFY) aims to retain its capital flexibility and reduce non-core exposure, especially amid the ongoing volatility in the broader agricultural input market.
The company moves ahead with its existing four segments, with its fertilizer segments in China playing a key role in providing input stability for farming supply chains in the region. The company operates in the U.S. and China, well-focused on the production of fertilizers and other agricultural products. Enlightify Inc. (NYSE:ENFY) is one of the best fertilizer stocks to buy right now.
6. Lavoro Limited (NASDAQ:LVRO)
Number of Hedge Fund Holders: 3
Lavoro Limited (NASDAQ:LVRO) is one of the 10 Best Fertilizer Stocks to Buy According to Hedge Funds.
To address financial challenges, the company reached an out-of-court restructuring agreement with key suppliers like BASF and EuroChem on June 18, 2025. Under Brazil’s Recuperacao Extrajudicial framework, the company is reorganizing its debts outside of court.
The EJ plan (Extrajudicial Plan) aims to restructure R$2.5 billion in trade payables, against which the company aims to secure a steady supply of products in the future. Furthermore, the plan aims to help the company mitigate supply chain disruptions by making adjustments to the inventory financing terms and payment schedules.
This restructuring is critical to Lavoro Limited (NASDAQ:LVRO), which faced difficulties in FY25 due to product shortages and financial constraints. With the help of extended payment terms and in-kind settlement with creditors, the company aims to improve its financial flexibility and stabilize its inventory flow through 2030.
Lavoro Limited (NASDAQ:LVRO), the region’s largest pure-play agricultural inputs company, is a key player in Latin America. The company distributes crop protection products, seeds, and fertilizers across Brazil and six other countries, operating through both physical stores and digital platforms.
