On Jun 8, 2016, Zacks Investment Research upgraded Monsanto Company to a Zacks Rank #3 (Hold) from a Zacks Rank #4 (Sell). Going by the Zacks model, Zacks Rank #3 companies are likely to perform in line with the broader market.
Why the Upgrade?
In view of the food price inflation and ever increasing population, farmers consistently strive to meet the rising demand through increased yield. Thus, the demand for Monsanto’s products, which serve to increase crop productivity, is also on the rise. The company boasts a high brand status in the global modified seeds market backed by its superior technology and unique agro products.
Moreover, Monsanto is on track to improve its liquidity through disciplined cash management. The company aims to record free cash flow of $1.6–$1.8 billion for fiscal 2016. The company intends to utilize its increased liquidity for productive purposes, such as enhancing shareholders’ value, establishing new projects and Greenfield business expansion plans, in the near future.
However, the stock is exposed to headwinds like intense competition that raises the risk of market share loss for the company. In addition, appreciation of the U.S. dollar is likely to hurt the company’s international revenues and margins. Moreover, Monsanto conducts its trade in the global agricultural industry that is subjected to cyclical fluctuations owing to climatic conditions. Thus, its share price is directly affected by the fluctuations in the global agro industry.
Stocks to Consider
Some better-ranked stocks in the industry include First Majestic Silver Corp. (AG - Free Report) , Antofagasta plc and BHP Billiton Limited (BHP - Free Report) . All the three companies presently hold a Zacks Rank #2 (Buy).
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
On Jun 8, 2016, Zacks Investment Research upgraded Monsanto Company to a Zacks Rank #3 (Hold) from a Zacks Rank #4 (Sell). Going by the Zacks model, Zacks Rank #3 companies are likely to perform in line with the broader market.
Why the Upgrade?
In view of the food price inflation and ever increasing population, farmers consistently strive to meet the rising demand through increased yield. Thus, the demand for Monsanto’s products, which serve to increase crop productivity, is also on the rise. The company boasts a high brand status in the global modified seeds market backed by its superior technology and unique agro products.
Moreover, Monsanto is on track to improve its liquidity through disciplined cash management. The company aims to record free cash flow of $1.6–$1.8 billion for fiscal 2016. The company intends to utilize its increased liquidity for productive purposes, such as enhancing shareholders’ value, establishing new projects and Greenfield business expansion plans, in the near future.
However, the stock is exposed to headwinds like intense competition that raises the risk of market share loss for the company. In addition, appreciation of the U.S. dollar is likely to hurt the company’s international revenues and margins. Moreover, Monsanto conducts its trade in the global agricultural industry that is subjected to cyclical fluctuations owing to climatic conditions. Thus, its share price is directly affected by the fluctuations in the global agro industry.
Stocks to Consider
Some better-ranked stocks in the industry include First Majestic Silver Corp. (AG - Free Report) , Antofagasta plc and BHP Billiton Limited (BHP - Free Report) . All the three companies presently hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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