As investors kick off the beginning of spring, five agriculture stocks broadly held by gurus as of the fourth-quarter 2022 13F equity portfolio filing date include Corteva Inc. (CTVA, Financial), The Mosaic Co. (MOS, Financial), The Scotts Miracle Gro Co. (SMG, Financial), FMC Crop. (FMC, Financial) and Nutrien Ltd. (NTR, Financial) according to the Aggregated Portfolio of Gurus, a Premium feature of GuruFocus.
The vernal equinox, which takes place around March 20, marks the beginning of astrological spring in the northern hemisphere. People can celebrate the start of spring by planting new seeds in their garden or going out for a walk and taking note of seasonal changes.
As such, investors may find opportunities in agriculture stocks that are most broadly held by gurus. GuruFocus’ Aggregated Portfolio allows users to view the stocks with the highest number of gurus owning shares for the entire market or sector.
The trades and holdings discussed in this article are based on fourth-quarter 2022 13F equity portfolio filings. Investors should be aware 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but they can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
Corteva
Seventeen gurus own shares of Corteva (CTVA, Financial) with a combined weight of 4.14%.
Shares of Corteva traded around $57.56, showing the stock is fairly valued based on its price-to-GF Value ratio of 1.02 as of Monday.
The Wilmington, Delaware-based company develops new seed and crop chemicals products. Corteva has a GF Score of 73 out of 100 based on a momentum rank of 10 out of 10, a financial strength rank of 8 out of 10, a growth rank of 3 out of 10 and a rank of 5 out of 10 for profitability and GF Value.
Corteva’s high financial strength is driven by several positive investing signs, which include a cash-to-debt ratio that outperforms more than 65% of global competitors and a Beneish M-score that signals little or no earnings manipulation.
Gurus with holdings in Corteva include PRIMECAP Management (Trades, Portfolio) and Barrow, Hanley, Mewhinney & Strauss.
Mosaic
Thirteen gurus own shares of Mosaic (MOS, Financial) with a combined weight of 3.80%.
Shares of Mosaic traded around $43.61, showing the stock is significantly undervalued based on its price-to-GF Value ratio of 0.68 as of Monday.
The Tampa, Florida-based phosphate and potash producer has a GF Score of 86 out of 100 based on a GF Value rank of 10 out of 10, a profitability rank of 8 out of 10, a growth rank of 6 out of 10 and a rank of 7 out of 10 for momentum and financial strength.
The company’s high profitability is driven by several positive investing signs, which include a high Piotroski F-score of 9 out of 9, a return on equity that outperforms approximately 81% of global competitors and an operating margin that has increased by approximately 30.80% per year on average over the past five years.
Gurus with holdings in Mosaic include Jeremy Grantham (Trades, Portfolio)’s GMO and Jim Simons (Trades, Portfolio)’ Renaissance Technologies.
Scotts Miracle Gro
Eleven gurus own shares of Scotts Miracle Gro (SMG, Financial) with a combined weight of 1.57%.
Shares of Scotts Miracle Gro traded around $71.25 on Monday. GuruFocus’ GF Value Line labeled the Marysville, Ohio-based gardening company a possible value trap based on the company’s low price-to-GF Value ratio of 0.55 and poor financial strength rank of 3 out of 10.
Scotts Miracle Gro’s low financial strength is driven by several warning signs, which include a poor Piotroski F-score of 3 out of 9, a low Altman Z-score of 1.72 and an interest coverage ratio that underperforms over 92% of global competitors.
Despite low financial strength, Scotts Miracle Gro's GF Score of 80 out of 100 is driven by a momentum rank of 10 out of 10, a growth rank of 5 out of 10 and a rank of 8 out of 10 for profitability and GF Value.
Gurus with holdings in Scotts Miracle Gro include Ken Fisher (Trades, Portfolio)’s Fisher Investments and Robert Olstein (Trades, Portfolio)’s Olstein Capital Management.
FMC
Ten gurus own shares of FMC (FMC, Financial) with a combined weighting of 11.27%.
Shares of FMC traded around $118.86, showing the stock is modestly undervalued based on its price-to-GF Value ratio of 0.87 as of Monday.
The Philadelphia-based crop chemical company has a GF Score of 92 out of 100 based on a financial strength rank of 5 out of 10, a GF Value rank of 7 out of 10 and a rank of 9 out of 10 for momentum, growth and profitability.
Gurus with holdings in FMC include Tweedy Browne (Trades, Portfolio) and Larry Robbins (Trades, Portfolio)’ Glenview Capital Management.
Nutrien
Ten gurus own shares of Nutrien (NTR, Financial) with a combined weight of 7.03%.
The Saskatoon, Saskatchewan-based fertilizer company has a GF Score of 86 out of 100 based on a growth rank of 10 out of 10, a profitability rank of 9 out of 10, a GF Value rank of 7 out of 10, a financial strength rank of 5 out of 10 and a momentum rank of 2 out of 10.
Gurus with holdings in Nutrien include Dodge & Cox and First Eagle Investment (Trades, Portfolio).
