Click here to listen to previous episodes.
About Chen Lin
Author "What is Chen Buying? What is Chen Selling?" Chen grew $5,400 to $2.3 million in 10 years. Learn More
The Agriculture Sector Is On Fire: Three Stocks And One ETF To Consider
From Taki Tsaklanos: Last week, we reported momentum in the agricultural commodities market. We wrote Why Agricultural Commodities Could Start A New Bull Market In 2017.
In the meantime, agricultural commodities continue to show strength as evidenced by another rise of 1.7 percent of VanEck Vectors Agribusiness ETF (NYSE:MOO) representing the sector. In this article, we identify 3 agriculture and potash stock with strong momentum which investors are watching closely in 2017.
There is a lot of speculation in the media that Trump is creating volatility in the agricultural commodities market. While that could be true, it is also clear that market segment is clearly on the rise in 2017. The more important data point is that money managers are actively and aggressively buying softs, suggesting agriculture and potash stocks continue to rise in 2017.
Given the data points outlined in this article, it is clear that Potash Corporation of Saskatchewan (POT) is a darling among investors at the start of 2017. Both fundamentals and supply/demand look great. InvestingHaven’s research team confirms this viewpoint.
Potash stock: Potash Corporation of Saskatchewan Inc. (POT)
With a market cap of $15B and a P/E ratio of 33, Potash Corporation is the market’s top favorite. The company has a great globally and industrial diversification. The company has a short float ratio of only 2%, a cash position of $150M, and an EPS of 0.10 in the last quarter.
Today the market confirmed its bullish stance as the stock price of POT blasted through resistance.
Potash Corporation of Saskatchewan (NYSE:POT) rose $0.13 (+0.65%) in premarket trading Wednesday. Year-to-date, POT has gained 10.44%, versus a 1.82% rise in the benchmark S&P 500 index during the same period.
Agriculture stock: The Mosaic Company (MOS)
Mosaic Company has a smaller market cap of POT: $11B. Its P/E ratio is 25, and that is very healthy. EPS is 1.25.
The company has volatile quarters, with alternating rising and falling revenue and profits.
The short float ratio on this stock is 9%.
The chart setup allows for more gains, as the stock did not officially break out yet.
Mosaic Co (NYSE:MOS) was unchanged in premarket trading Wednesday. Year-to-date, MOS has gained 14.05%, versus a 1.82% rise in the benchmark S&P 500 index during the same period.
Agriculture stock: CF Industries Holding (CF)
CF Industries (CF) is the smallest company of the three with a market cap of $8.2B. Its P/E ratio is 118, very high, and the short float ratio 13%. The company holds an impressive +$1B of cash. It made a loss of $0.13 over the last quarter.
The chart setup of this stock is more aggressive than POT. The bottom of last year is less solid, its recent rise is much steeper. We would be a bit more cautious but this company is clearly providing leverage on rising agriculture commodities prices.
CF Industries Holdings, Inc. (NYSE:CF) was unchanged in premarket trading Wednesday. Year-to-date, CF has gained 17.06%, versus a 1.82% rise in the benchmark S&P 500 index during the same period.
On the ETF side of things, the VanEck Vectors Agribusiness ETF (NYSE:MOO) was unchanged in premarket trading Wednesday. Year-to-date, MOO has gained 5.41%, versus a 1.82% rise in the benchmark S&P 500 index during the same period.
MOO currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #8 of 120 ETFs in the Commodity ETFs category.
This article is brought to you courtesy of Investing Haven.
You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
Powered by WPeMatico