The U.S. is one the world’s top exporters in chemical industry. According to data released, .8 million was spent on pesticides, fertilizers, and agricultural chemicals in 2010. There is a growing demand in the global fertilizer market sees growing demand. Thus, prices of products also rise, helping agricultural chemical companies improve profitability. From now on, it is a good time to start investment in agricultural chemical stocks which may have 6%-128% upside with strong buy, hold ratings. The following are 6 agricultural chemical stocks that have potential upside in the upcoming 12 months.
Monsanto has recently reported an 8% increase in net sales in the first three months of 2011. The company expects earnings per share in the range of .72 and .82 for the full year.
Monsanto is the world’s provider of agricultural products for farmers. The company is mainly engaged in three segments: seeds, genomics, and agricultural productivity.
Potash Corporation of Saskatchewan operates five potash mines in Saskatchewan and one in New Brunswick. The company accounts for 20 percent of the world market share.
Potash’s stocks are expected to gain an average of 13.2% to .7 this year.
Agrium is one of three companies (along with Potash Corp and Mosaic) which are likely to gain robustly from rising prices and volumes in the upcoming 2-3 years. Last year, the company earned 4 million. Its net sales rose to .52 million from .13 million the preceding year.
Agrium produces and wholesales nutrients for agricultural and industrial markets. The company consists of three business units: wholesale, retail, and advanced technologies.
Last year, Syngenta’s sales rose 6 percent to .6 billion. For full year 2010, its dividend rose 32% in terms of dollar. The company has signed a distribution agreement with Marrone for exclusive distribution rights in EAME region.
Syngenta believes that the integration of its crop protection and seeds business will result in cost saving of about 0 million.
In April 2010, CF Industries Holdings merged with Terra Industries. The deal was worth .7 billion. For full-year 2010, its subsidiary, Terra Nitrogen Company, earned 1.6 million on sales of 4.6 million.
CF Industries Holdings manufactures and distributes nitrogen and phosphate fertilizer products. The company mainly operates in the Midwestern grain-producing states.
China Green Agriculture targets to reach between .8 million and .6 million. Its earnings per share will range from 31 cents to 32 cents. The company will provide Sinoagri Holding with 165,000 tons of binary acid compound fertilizer products.
China Green Agriculture is mainly engaged in manufacturing and selling fertilizer products. The company aims to earn 0 million by 2015 and billion by 2020.