On Jun 17, 2016, we issued an updated research report on premium agro-chemical firm Monsanto Company . The company, along with its subsidiaries, is one of the leading providers of agricultural products globally.
Bullish Factors
A rise in global population, increase in the strength of middle-income group consumers and improving individual dietary habits are expected to enhance agricultural demand and in turn, sales of farming products offered by Monsanto. Driven by an innovation-based growth strategy, the company offers unique product and process technologies to help lower input costs and increase crop yield. Monsanto’s strategic business initiatives position it well for mid-teen compounded annual growth between fiscal 2016 and fiscal 2019. Moreover, the company is improving its liquidity through disciplined cash management. In the near future, increased liquidity can be utilized for productive purposes such as enhancing shareholders’ value, establishing new projects and Greenfield business expansion plans.
Risks
Monsanto operates in the global agricultural industry, which is subject to cyclical fluctuations owing to climatic conditions. Moreover, international operations expose the company to foreign currency fluctuation risks. For instance, appreciation of the U.S. dollar has been hurting the company’s international revenues in recent times. Also, operational hazards, changes in economic conditions, governmental policies and trade restrictions in foreign economies increase risks for the company’s international business. In addition, the company faces intense competition.
Stocks to Consider
Monsanto presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Bunge Limited (BG - Free Report) , Akzo Nobel N.V. (AKZOY - Free Report) and Coeur Mining, Inc. (CDE - Free Report) . All the three companies currently 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 17, 2016, we issued an updated research report on premium agro-chemical firm Monsanto Company . The company, along with its subsidiaries, is one of the leading providers of agricultural products globally.
Bullish Factors
A rise in global population, increase in the strength of middle-income group consumers and improving individual dietary habits are expected to enhance agricultural demand and in turn, sales of farming products offered by Monsanto. Driven by an innovation-based growth strategy, the company offers unique product and process technologies to help lower input costs and increase crop yield. Monsanto’s strategic business initiatives position it well for mid-teen compounded annual growth between fiscal 2016 and fiscal 2019. Moreover, the company is improving its liquidity through disciplined cash management. In the near future, increased liquidity can be utilized for productive purposes such as enhancing shareholders’ value, establishing new projects and Greenfield business expansion plans.
Risks
Monsanto operates in the global agricultural industry, which is subject to cyclical fluctuations owing to climatic conditions. Moreover, international operations expose the company to foreign currency fluctuation risks. For instance, appreciation of the U.S. dollar has been hurting the company’s international revenues in recent times. Also, operational hazards, changes in economic conditions, governmental policies and trade restrictions in foreign economies increase risks for the company’s international business. In addition, the company faces intense competition.
Stocks to Consider
Monsanto presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Bunge Limited (BG - Free Report) , Akzo Nobel N.V. (AKZOY - Free Report) and Coeur Mining, Inc. (CDE - Free Report) . All the three companies currently 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 >>
Get the latest research report on BG - FREE
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