Jim Cramer reviewed Corteva, Inc. (NYSE:CTVA) while breaking down 16 stocks for a market facing higher energy costs and economic uncertainty. Toward the end of the lightning round, a caller asked for Cramer’s thoughts on the stock, and he said:
Okay, it’s an ag stock. We all know that crop protection and seeds are going to be very important this year because of what’s happened to the Gulf. I would continue to own the stock.
Photo by Adam Nowakowski on Unsplash
Corteva, Inc. (NYSE:CTVA) provides advanced seeds and trait technologies that are designed to help farmers improve crop yields and protect against weather and pests. The company also offers products like herbicides and insecticides. Hardman Johnston Global Equity Strategy stated the following regarding Corteva, Inc. (NYSE:CTVA) in its fourth quarter 2025 investor letter:
During the quarter we liquidated Corteva, Inc. (NYSE:CTVA), T-Mobile US, Inc. and Vertex Pharmaceuticals Inc. We exited our position in Corteva Inc. following management commentary around a potential separation of the Seeds and Crop Protection businesses, as we struggle to see a clear value-creation rationale given Corteva already trades at one of the richer multiples in the ag/chem peer group. While the Seeds business (c. two-thirds of profits) may command a premium multiple, this would likely be offset by a materially lower valuation for the Chemicals business, resulting in limited net value unlock. The separation narrative also raises strategic credibility concerns, as it appears inconsistent with prior management messaging around the complementary nature of Seeds and Chemicals on a single platform, as well as the long-term growth potential of higher-margin areas such as biologicals within Crop Protection. WSJ commentary suggesting a separation could be aimed at insulating the Seeds franchise from potential liabilities in the Chemicals business introduces additional uncertainty. At the same time, end-market fundamentals are becoming less supportive. U.S. corn acreage has risen to peak levels, increasing the risk of a sharp price correction if supply proves difficult to absorb, while soybean markets also face challenges given their reliance on exports and lower demand from China. Depressed farm economics over a prolonged period could pressure farmer spending on inputs. Taken together — elevated valuation, strategic uncertainty, and deteriorating agricultural fundamentals — we viewed the risk-reward as less compelling and chose to exit the position. We will be watching developments closely as the Seeds business is a truly unique franchise with high entry barriers and technological innovation.
While we acknowledge the risk and potential of CTVA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CTVA and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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