Best Fertilizer Stocks To Invest In for November 2024

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With inflation and higher interest rates still weighing on the economy and consumers’ wallets, many are turning to defensive stocks — those that tend to do well regardless of how the overall market is performing — to protect their portfolios against volatility. Some industries, such as healthcare and energy, are obvious picks. Others get less attention despite being well-positioned to see gains amid economic, financial and geopolitical strife. Fertilizer falls into that category.

Fertilizers such as potash, nitrogen and phosphates are vital agricultural products that nourish soil and crops to maximize crop yields. They also are a $176.4 billion global market, as of 2023. Russia is a major fertilizer exporter, and its invasion of Ukraine has upended that market, threatening supplies and paving the way for fertilizer producers in the U.S. and elsewhere to fill gaps.

Here’s a look at nine fertilizer stocks to consider for your portfolio.

What Are the Best Fertilizer Stocks?

GOBankingRates has compiled a list of some of the best stocks to invest in for November 2024 in the fertilizer industry:

1. Nutrien Ltd. (NTR)
2. The Mosaic Co. (MOS)
3. CF Industries Holdings Inc. (CF)
4. FMC Corp. (FMC)
5. American Vanguard Corp. (AVD)
6. Corteva Inc. (CTVA)
7. Bioceres Crop Solutions Corp. (BIOX)
8. Scotts Miracle-Gro Company (SMG)
9. Intrepid Potash (IPI)

Methodology

The stock picks are based on a number of factors, including performance, market cap, price-earnings ratio, dividend yield and analyst ratings.

1. Nutrien Ltd. (NTR)

• Price as of Nov. 8: $48.32
• Market Cap: $23.91 billion
• P/E Ratio: 32.65
• Dividend Yield: 4.47%
• Year-to-Date Performance: -14.22%

As the world’s top potash manufacturer and one of the biggest fertilizer producers overall, Nutrien produces and distributes nearly 35 million tons of potash, nitrogen and phosphate products to help global clients in a variety of industries increase food production in a sustainable manner. The Canadian company boasts an agricultural retail network with over half a million grower accounts, positioning it to meet demand in international markets.

The stock has a solid 4.47% dividend yield and appears to be a great value. Although the company missed earnings estimates by $0.06 in the third quarter, it beat estimates by $0.09 and $0.15, respectively, in the first and second quarters. NTR has a one-year price target of $59.25 and a “buy” or “strong buy” rating from seven of 12 analysts following the stock, according to Yahoo Finance.

2. The Mosaic Co. (MOS)

• Price as of Nov. 8: $27.73
• Market Cap: $8.84 billion
• P/E Ratio: 36.971
• Dividend Yield: 3.03%
• Year-to-Date Performance: -22.39%

Mosaic is a mine-to-market company engaged in every aspect of crop nutrition. Mosaic produces and distributes millions of tons of potash and phosphates each year for a global customer base that includes wholesalers, retailers and growers in more than three dozen countries. Its products, which encompass both performance and commodity fertilizers, have positioned Mosaic as a major player in the industry.

Although most analysts have a consensus “hold” rating on the stock, the average 12-month price target is $33.10, about 19% above current levels.

3. CF Industries Holdings Inc. (CF)

• Price as of Nov. 8: $83.71
• Market Cap: $14.57 billion
• P/E Ratio: 13.27
• Dividend Yield: 2.39%
• Year-to-Date Performance: 5.30%

With nine manufacturing complexes in the U.S., Canada and the U.K. and an extensive storage, transportation and distribution network in North America, CF Industries is a leading manufacturer of hydrogen and nitrogen products.

This U.S.-based company notes that its mission is to “provide clean energy to feed and fuel the world sustainably,” and it does that by using a special process to reduce reliance on limited supplies of naturally occurring nitrogen deposits. It maintains the world’s largest ammonia production network — a network it’s committed to decarbonizing to enable greener products.

Nine of 17 analysts rate CF a hold, but that’s likely due to the stock’s recent sharp gains. Over the past one- and three-year periods, the stock has returned 9.31% and 50.24%, respectively, with the three-year return nearly doubling that of the S&P 500. The 12-month price target on the company, according to Yahoo Finance, is $87.14.

4. FMC Corp. (FMC)

• Price as of Nov. 8: $59.70
• Market Cap: $7.45 billion
• P/E Ratio: 4.90
• Dividend Yield: 3.89%
• Year-to-Date Performance: -5.31%

This Philadephia-based agricultural sciences company specializes in sustainable crop protection technologies. It invests heavily in developing new formulations and biologicals and boasts a robust portfolio of pest- and weed-control products in addition to fertilizers. The company offers the Arc farm intelligence app, a precision agriculture platform that alerts growers to impending pest issues.

Other innovations include product and application technologies. FMC has widened its market beyond crops to include golf courses, lawn care, vegetation management and other services, particularly in North America.

FMC’s recent earnings are inconsistent, and the stock has paid the price, although prices are improving. More than half of analysts have either “buy” or “strong buy” ratings on the stock. The average 12-month price target is $72.40, about 21% above current levels.

5. American Vanguard Corp. (AVD)

• Price as of Nov. 8: $5.77
• Market Cap: $166.38 million
• P/E Ratio: N/A
• Dividend Yield: 2.08%
• Year-to-Date Performance: -47.40%

American Vanguard is the smallest company on this list by market cap, but that potentially offers it the highest future growth rate. The company develops new products that support the growth and sustainability of agricultural products, but it’s also growing through acquisitions, such as when it bought Envoke herbicide in 2021 and Ecuador’s Punto Verde in 2023. The company, which is headquartered in California, operates a number of businesses in the U.S., Australia, Brazil, Mexico and elsewhere.

Of four analysts watching AVD stock, one rates it a “strong buy,” two rate it a “buy” and one rates it a hold, for a consensus recommendation of “buy.” Like many of the fertilizer stocks on the list, AVD has suffered over the past year, falling nearly 40%. However, analysts see the stock more than doubling over the next 12 months, with an average price target of $12.50.

6. Corteva Inc. (CTVA)

• Price as of Nov. 8: $58.33
• Market Cap: $40.09 billion
• P/E Ratio: 60.76
• Dividend Yield: 1.17%
• Year-to-Date Performance: 21.72%

Corteva Agriscience notes that out of the major agriscience companies, it’s the only one that is entirely dedicated to agriculture. Formerly the agricultural division of DowDuPont, Corteva was spun off in 2019 to operate as an independent company with the combined strength of DuPont Pioneer, DuPont Crop Protection and Dow AgroSciences.

CTVA is up 21.74% YTD in 2024 and 26.73% over the past three years. The stock has a 12-month price target of $64.38, with 16 of 24 analysts covering the stock having a “strong buy” or “buy” rating on it. Corteva has met or beaten analyst earnings expectations for two of the last three quarters.

7. Bioceres Crop Solutions Corp. (BIOX)

• Price as of Nov. 8: $6.39
• Market Cap: $387.17 million
• P/E Ratio: 127.80
• Dividend Yield: N/A
• Year-to-Date Performance: -53.46%

Bioceres Crop Solutions provides crop productivity technologies, including digital decision-making solutions for growers, that support agriculture’s transition to carbon neutrality. For a relatively small company, it has a solid international presence and some impressive achievements under its belt. For example, Bioceres has over 700 trademarks and trademark applications, and it says it was the first company to achieve drought-tolerant soybean and wheat crops.

While the company is not yet profitable, and the stock is struggling, analysts are bullish. They rate it a “buy” and setting an average 12-month price target of $13.60, which is 112% higher than the current price.

8. Scotts Miracle-Gro Company (SMG)

• Price as of Nov. 8: $72.60
• Market Cap: $4.13 billion
• P/E Ratio: N/A
• Dividend Yield: 3.64%
• Year-to-Date Performance: 13.88%

The Scotts Miracle-Gro Company is one of the original American fertilizer companies, tracing its roots back to 1868. The company is now the world’s largest marketer of branded consumer lawn and garden products. SMG has offices and research facilities across the U.S., Europe, Canada and Asia Pacific.

Scotts Miracle-Gro pays a hefty dividend and has beaten earnings estimates for two of the past three quarters. Five of the nine analysts covering the stock have a “hold” rating on it, but two have a “buy” rating and two others have a “strong buy.” The stock is up 39.16% over the past year but still down a rough 50.76% over the past three years.

9. Intrepid Potash (IPI)

• Price as of Nov. 8: $27.68
• Market Cap: $364.36 million
• P/E Ratio: N/A
• Dividend Yield: N/A
• Year-to-Date Performance: 15.86%

Intrepid Potash is the sole American provider of muriate of potash, providing about 3.5% of the nation’s annual consumption. But it’s also a leader in using solar evaporation production, which is a low-cost, environmentally friendly method to produce potash. It has facilities in Moab, Utah, Carlsbad, New Mexico, and Wendover, Utah.

Intrepid Potash has returned 38.40% over the past year but has actually lost investors 38.21% over the past three years. Analysts aren’t currently bullish on the stock, with three of four predicting it will underperform, and a 12-month price target below current levels.

However, those analysts also missed out on a run of about 40% in the stock earlier this year, when they had a “sell” rating on Intrepid Potash. This just goes to show that sometimes, being in the right industry can be enough to help carry a stock higher, even if analysts don’t currently like its specific financials.

Are Fertilizer Stocks a Good Investment?

Fertilizer is a vital product, and fertilizer stocks can be an excellent investment. That’s especially true during times of inflation, when fertilizer stocks serve as a hedge against rising prices.

Another factor in the gains seen in most of the stocks in this roundup is the war in Ukraine. While the U.S. and other nations have excluded fertilizer from sanctions on Russia in order to protect food supplies, Russia suspended exports, and in the process, drove prices to record highs. While potentially devastating for growers and other stakeholders, high prices and short supplies can have a positive effect on fertilizer stocks.

Final Take

Investing in stocks is always risky, and investing in individual stocks is even more so. You can offset some of that risk by investing in a mutual fund containing many stocks — the idea being that some of the fund’s stocks will be up while others are down, which reduces the impact of the down shares. A fund’s diversity makes it a safer investment than any single stock in its portfolio.

Data is accurate as of Nov. 8, 2024, and is subject to change.

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