In this piece, we will discuss the 7 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 7 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.
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Methodology
To curate our list of the 7 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 7 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 7 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.
5. Nutrien Ltd. (NYSE:NTR)
Number of Hedge Fund Holders: 32
Nutrien Ltd. (NYSE:NTR) is one of the 7 Best Fertilizer Stocks to Buy According to Hedge Funds.
Nutrien Ltd. (NYSE:NTR)’s stock was downgraded from ‘Outperform’ to ‘Market Perform’ by Raymond James on June 17, 2025. The analyst maintained the price target at $68. This development follows a 40% YTD gain for the company. As such, the analyst believes that there is limited upside potential for the stock due to valuation pressures. The analyst points to the recent potash contract settlements with China and India that may support pricing. However, it was also noted that a retreat in corn prices and seasonality factors could limit short-term growth.
Nevertheless, Nutrien Ltd. (NYSE:NTR) maintained its full-year 2025 guidance, providing reassurance regarding its plan to achieve $200 million in cost savings a year ahead of schedule. Additionally, the company acquired two U.S. retail channels, expanding its domestic presence and signaling optimism in long-term demand fundamentals.
The company operates through four segments: Potash, Nitrogen, Phosphate, and Nutrien Ag Solutions. Nutrien Ltd. (NYSE:NTR) prepares crop inputs that are critical in supporting global food supply chains. It is one of the best fertilizer stocks to buy right now.
4. Bunge Global SA (NYSE:BG)
Number of Hedge Fund Holders: 38
Bunge Global SA (NYSE:BG) is one of the 7 best fertilizer stocks to buy according to hedge funds.
The merger between Bunge Global SA (NYSE:BG) and Glencore-backed Viterra received a conditional approval from China on June 16, 2025. The approval follows two years of regulatory investigation, due to concerns over competition in the soybean and rapeseed import markets in China. However, China has set conditions on the merger, requiring Bunge Global SA (NYSE:BG) to report quarterly on its activities and ensure the uninterrupted supply of critical crops to Chinese customers.
Following this deal, Bunge is now positioned to compete with global giants like Cargill and ADM in commodity trading, processing, and logistics. Through this merger, the company is set to enhance its reach and leverage across global agri-input markets, strengthening its role in upstream food and fertilizer supply.
Bunge Global SA (NYSE:BG) operates four segments through its integrated operations in oilseed processing and crop handling, supporting fertilizer-related agricultural markets. It is one of the best fertilizer stocks to buy right now.
3. The Scotts Miracle-Gro Company (NYSE:SMG)
Number of Hedge Fund Holders: 39
The Scotts Miracle-Gro Company (NYSE:SMG) is one of the 7 best fertilizer stocks to buy according to hedge funds.
On June 10, Stifel analysts announced that they are maintaining a ‘Hold’ rating for the company, citing its cautious stance about the future performance. The analysts cite concerns about the growth rate of U.S. consumer revenue in FY25, which they expect to grow below expectations. The analysts maintained a price target of $71. The Scotts Miracle-Gro Company (NYSE:SMG)’s shares are trading around $62 at the time of writing.
In addition to the concerns about consumer revenue growth, the analysts highlighted uncertainty regarding the company’s FY25 financial performance results. Moreover, the analysts have also cited FY26 projected results, which are below the consensus estimates. Thus, they concluded that the current risk-to-reward ratio supports a ‘Hold’ rating.
The Scotts Miracle-Gro Company (NYSE:SMG) manufactures and sells lawn fertilizers, soils, plant-based food, and hydroponic equipment across the U.S. and the rest of the globe. It is one of the best fertilizer stocks to buy right now.
2. CF Industries Holdings, Inc. (NYSE:CF)
Number of Hedge Fund Holders: 42
CF Industries Holdings, Inc. (NYSE:CF) is one of the 7 best fertilizer stocks to buy according to hedge funds.
BMO Capital announced its decision to maintain an ‘Outperform’ rating on CF Industries Holdings, Inc. (NYSE:CF), raising its price target to $110 from $100. This decision was announced on June 18, 2025. The analyst cited growing confidence in the company’s earnings strength amid a tight nitrogen supply market. Furthermore, continued operational stability, particularly evident from the 100% ammonia plant utilization rate for the second consecutive quarter, contributed positively toward the analyst’s decision.
Looking ahead, CF Industries Holdings, Inc. (NYSE:CF) eyes the completion of its major carbon capture project at its Louisiana site, which is expected to generate a 45Q tax credit, reinforcing its carbon ammonia strategy. The company confirmed that its project is near completion, while also highlighting active offtake agreements for its Blue Point JV, which is set to deliver clean ammonia exports to Europe. Thus, CF Industries Holdings, Inc. (NYSE:CF) is one of the best fertilizer stocks to buy now.
The company boasts global operations, enjoying a dominant position in nitrogen-based fertilizer production and efficient ammonia operations. Furthermore, it is advancing decarbonization in large-scale crop nutrient production.
1. The Mosaic Company (NYSE:MOS)
Number of Hedge Fund Holders: 48
The Mosaic Company (NYSE:MOS) is one of the 7 best fertilizer stocks to buy according to hedge funds.
BMO Capital announced its decision to raise its price target on The Mosaic Company (NYSE:MOS) from $44 to $48 on June 18, 2025. By maintaining an ‘Outperform’ rating, the analyst expressed optimism about the company’s cost-cutting initiatives, which helped it recover margins while optimizing phosphate cash conversion and expanding in Brazil. The Mosaic Company (NYSE:MOS)’s share price is hovering around $35.89 as of the time of writing.
The company remains one of the best fertilizer stocks to buy right now. Through its three key segments, Phosphates, Potash, and Fertilizantes, The Mosaic Company (NYSE:MOS) produces key nutrient products like diammonium phosphate and potash for agricultural and industrial use. It operates in North and South America, as well as Asia.
While we acknowledge the potential of MOS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MOS and that has 100x upside potential, check out our report about this cheapest AI stock.
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