Top 5 Best Fertilizer Stocks to Watch 2024

Given the trend of green products, services and initiatives growing in popularity, individuals may be interested in investing or trading in stocks that benefit a community they care about.

For example, when you think about agriculture, one may want to consider which are the best fertilizer stocks. However, choosing a fertilizer stock to invest in or trade can be a daunting task as there are many options to consider. 

We will discuss the top 5 best fertiliser stocks to watch and what makes each an interesting option, with both advantages and disadvantages.

Please continue reading to learn about the best fertiliser stocks to watch and the pros and cons associated with them.

What are Fertilizer Stocks? 

Fertilizer stocks are defined by any company on a public exchange which has some contributing factor to the fertiliser industry, whether directly or indirectly. 

A sub- or niche group of agriculture stocks, fertiliser stocks are considered very important from an overall perspective as, without fertiliser, many areas of agriculture cannot thrive in the first place. 

Given the recent global news of food shortages, fertiliser and food prices have skyrocketed and naturally, this will make an impact on fertilizer stock prices. Many are contributing factors, including the pandemic, geopolitical conflict and climate change overall. These aspects are contributing to higher import costs, with the energy crisis also having an effect on global prices. 

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Top 5 Best Fertilizer Stocks to Watch 

We look further to review some of the most discussed and hence best fertilizer stocks to watch.

Please keep in mind that any list of best stocks to watch is always subjective and it is crucial that all traders and investors conduct their own research while keeping in mind their risk tolerance. 

1. CF Industries Holdings (CF) 

One of the most well-known fertiliser stocks is CF Industries Holdings.

This fertiliser stock recently partnered with Exxon to work on a project reducing emissions.

This was good news for people who are invested in the care of the environment. With climate change being such a hot topic for the past several years, finding stocks to trade or invest in that focus on improving climate change is a priority for many investors. 

Pros:

• One of the most well-known fertiliser stocks with a market cap of 15.413B (as of July 24, 2023)
• Working with Exxon to reduce greenhouse gas emissions 

Cons: 

• Big company changes could destabilize stock 
• This stock offers a low dividend

Most people see the changes with CF Industries Holdings as positive, but whenever there's change, there's doubt.

Many become nervous about change as no one knows what to expect until changes are implemented. However, considering this stock is a fertiliser stock, changes that will help the environment are generally good. 

You can invest in CF shares directly, or trade the CF Contract for Difference (CFD), both at Admirals.

2. CVR Partners LP (UAN) 

If you're looking for a stock based in the United States, then CVR Partners LP is an option to consider.

The headquarters of the stock is based in Sugar Land, TX, and they specialize in nitrogen fertiliser products. Nitrogen is an essential nutrient for many crops, which is why it's important for farmers to seek out nutrient-enriched fertilisers. 

Pros: 

• The company’s 12-month revenue as of July 21, 2023, is $931.9 million, accounting for a 35.2% profit margin 
• The agriculture chemicals industry appears to currently be in a bullish cycle, considering environmental factors 

Cons: 

• The UAN stock was volatile throughout 2022 and could continue for the year of 2024
• Not considered a well-known stock 

Before you invest in a stock, you need to consider the values that are important to you regarding trading and investing.

For instance, if your primary concern when investing in stock is where the headquarters of the stockholders is based, then you need to keep that in mind.

You can invest in CVR Partners LP shares directly at Admirals.

3. Origin Agritech Limited (SEED) 

Origin Agritech Ltd, or SEED, is a China-based company and stock which focuses on the niche of agriculture biotechnology, a potentially interesting sub-topic to learn more about. SEED focuses on crop seed breeding and improvement, which is arguably a likely future trend, while the business model also incorporates an e-commerce platform. 

When you invest in or trade a fertiliser stock, you should consider what that stock gives back to the community. For instance, Origin Agritech Limited has developed different varieties of corn that can meet new nutritional needs. Corn is one of the most easily recognizable crops because this plant is used in several meals and liquors. 

Pros: 

• Operates in a niche-focused area of agriculture with proprietary technology
• Current stock value of $4-5 per share (As of July 21, 2023); potentially undervalued

Cons: 

• ESP (earnings per share) and Net Earnings Growth (%) were down in the year 2022 
• No dividends

As of the end of last year, 2022, the company was added to two new equity indices, the FTSE Micro Cap Index and the FTSE Total Cap Index. 

See below the live Daily movements of SEED via TradingView:

*Past performance is not reflective of future results.

You can invest in SEED shares directly at Admirals via the Invest.MT5 platform.

4. Compass Minerals International Inc (CMP) 

Compass Minerals International Inc distributes fertiliser enriched with minerals throughout the United States, United Kingdom, Canada, and Brazil.

However, within this past year, despite the previous success, there have been legal issues associated with this company. 

In addition, many major companies face controversy at one point or another, even in the agricultural community.

While some investors are rapidly selling this stock, others are holding it in hopes of future profit. Some people believe the best time to purchase a stock is when they're facing legal controversy as the stocks are often lower. Please always remember there are risks involved with any stock purchase. 

Aside from the legal controversy, this company has been a well-known fertiliser manufacturer for years. 

Pros: 

• Established since 1993 with gradual profit growth up until this time of writing (07/2023)
• Diversified markets in the US, UK, Canada and Brazil 

Cons: 

• Very minimal dividend percentage 
• Ongoing legal controversy 

Whenever you invest in or trade a stock, there are several risk factors you need to consider about your options.

You need to determine if these lawsuits are enough to sway you away from purchasing stock from this company or if you view this as a rare opportunity. Industry professionals have varying opinions about whether or not you should invest in stock during a lawsuit. 

You can trade the CMP CFD in both price directions at Admirals, while you can also invest in the shares directly.

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5. The Andersons, Inc (ANDE) 

The Andersons, Inc is a popular fertiliser stock for people who invest in the grain industry.

There are many agricultural and fertiliser stocks to consider but choosing a speciality stock is a potential option if you're concerned about a specific area. Grain is a popular crop in the United States and other countries, and it satisfies many nutritional needs for humankind. 

 So far, The Andersons, Inc has seen steady increases ever since the development of this stock. 

Pros: 

• Business segments of ANDE run both vertically and horizontally within the supply chain 
• Increasing commodity pricing will likely expand the margins of this stock 

Cons: 

• The ANDE stock faces much competition in this vertical 
• Limited only to the US market

It’s important to consider, there's no one-size-fits-all option for determining the stocks you should trade or invest in. Your decisions depend solely on your preferences and the aspects you deem important when trading or investing in stocks. 

You can trade the ANDE CFD at Admirals as well as invest in ANDE shares directly.

Best Fertilizer Stocks to Watch: Final Thoughts 

Like any other industry, the fertiliser industry will see its stock fluctuations as the market rises and falls.

However, fertiliser will always be required as we require farming and plants to survive.

Fertiliser gives plants the nutrients they require to survive and grow into promising products, which is an area of focus lately given food shortages. 

Purchasing agricultural stock like fertiliser stocks is a great way to help farmers develop the agricultural industry and can potentially help to diversify an investment portfolio. 

If you would like to get started in trading or investing in fertilizer stocks, feel free to register with Admirals today with a live account – Click the banner below: 

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