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5 Agriculture Operations Stocks to Watch Despite Trade-Related Challenges
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The Zacks Agriculture – Operations industry continues to face persistent structural challenges, including volatile commodity prices, elevated input and labor costs, trade uncertainties, and rising operating expenses. These pressures are squeezing margins, disrupting productivity and testing long-term sustainability, forcing companies to strike a careful balance between near-term profitability and strategic resilience.
Despite these headwinds, the industry’s long-term outlook remains favorable. Ongoing innovation across seeds, crop inputs, food processing and supply chains is unlocking growth opportunities, while rising consumer preference for healthier, sustainably produced food is reshaping demand. The rapid adoption of alternative proteins, continued efficiency gains in grain handling, storage and logistics, and robust demand from emerging markets further reinforce the growth trajectory. Strategic acquisitions, partnerships and capacity expansions are enabling companies to scale operations and diversify revenue streams.
Against this backdrop, industry leaders such as Corteva Inc. (CTVA - Free Report) , Archer Daniels Midland Company (ADM - Free Report) , The Scotts Miracle-Gro Company (SMG - Free Report) , Adecoagro S.A. (AGRO - Free Report) and Mission Produce Inc. (AVO - Free Report) are well-positioned to navigate volatility and capitalize on evolving global food and agriculture trends.
About the Industry
The Zacks Agriculture – Operations industry comprises companies that produce or procure, transport, store, process and distribute agricultural commodities to consumers. It also distributes ingredients to other parts of the agriculture industry (including clothing, animal feed, energy and industrial products). Some industry players engage in dairy operations, land transformation activities and the development of food ingredients using gene-editing technology. The industry encompasses production activities related to the traditional farming of crops (like corn, soybean, wheat and cotton), and livestock and poultry products (including meat, dairy and eggs). The products are mainly sold at grocery stores or exported overseas. These are also used as feedstock for other industries. For example, cotton is used in the clothing industry and corn is used in the ethanol industry.
Factors Shaping the Future of Agriculture - Operations Industry
Elevated Costs: Agricultural companies face rising costs due to fluctuating commodity prices, inflation-driven input increases and trade uncertainties, all of which are squeezing profitability. Inflation-driven surges in input costs are significant challenges, raising production expenses and narrowing margins. To combat these pressures, companies have adopted pricing strategies and improved supply-chain resilience through partnerships and distribution initiatives. However, commodity cost inflation is expected to persist, maintaining pressure on margins in the near term.
Additionally, companies are managing higher SG&A expenses, driven by performance-related compensation, project costs and technology investments to stay competitive. These elevated operating expenses and ongoing SG&A deleverage may continue to weigh on profitability.
Agricultural Export/Import Projections: The February 2026 outlook of the U.S. Department of Agriculture projects agricultural exports of $174 billion for fiscal 2026 (ending Sept. 30, 2026), up $1 billion from the December forecast of $173 billion. The uptick is primarily driven by stronger export volumes expected for corn, and livestock, poultry and dairy. Corn exports are expected to rise by $0.9 billion to $18.5 billion, while livestock, poultry and dairy exports are likely to increase by $0.6 billion to $39.1 billion.
Organic Products & Innovation in Focus: The industry has gained from rising consumer demand for healthier food, prompting a shift toward organic farming practices and reduced use of chemicals and pesticides. Innovations in food processing, enhanced grain-handling techniques, increased storage capacity and strong demand from emerging markets are driving growth. As healthy eating trends expand, alternative protein consumption is expected to rise. To align with trends in food security, health and well-being, industry players are prioritizing productivity and innovation. Companies are also investing in acquisitions and joint ventures to create high-quality ingredients and solutions that meet the growing demand for healthy products.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Agriculture – Operations industry is within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #195, which places it in the bottom 20% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries resulted from a negative aggregate earnings outlook for the constituent companies. Looking at the aggregate earnings estimate revisions, analysts are gradually losing confidence in this group’s earnings growth potential.
Before we present a few stocks that you may want to consider for your portfolio, let us look at the industry’s recent stock-market performance and valuation picture.
Industry vs. Broader Market
In a year, the Zacks Agriculture – Operations industry has outperformed the Zacks Consumer Staples sector but underperformed the S&P 500.
The stocks in the industry have collectively rallied 21.7% in a year compared with a 0.4% return for the sector and 21.9% growth for the Zacks S&P 500 composite.
1-Year Price Performance
Agriculture - Operations Industry's Valuation
On the basis of the forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing Consumer Staples stocks, the Agriculture – Operations industry is currently trading at 15.99X compared with the S&P 500’s 21.63X and the sector’s 17.03X.
Over the last five years, the industry traded as high as 17.43X, as low as 11.09X and at the median of 14.13X, as the chart below shows.
Price-to-Earnings Ratio (Past 5 Years)
5 Agriculture Operations Stocks to Watch
One stock in the Zacks Agriculture – Operations universe currently sports a Zacks Rank #1 (Strong Buy), while none of the stocks have a Zacks Rank #2 (Buy). We have highlighted four other stocks currently sporting a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Adecoagro: This Luxembourg-based farm products company engages in agricultural and agro-industrial activities in Argentina, Brazil, Chile and Uruguay. The company offers a differentiated agribusiness exposure with scale, asset backing and operational flexibility across sugar, ethanol, crops, rice and dairy. Strategic diversification and hedging are helping mitigate commodity price volatility, while farmland assets continue to appreciate. Although leverage has risen due to the Profertil acquisition, management is focused on cost actions and capital allocation discipline.
Over the cycle, AGRO’s integrated platform, strong asset base and cash-generating core support long-term value creation. The Zacks Consensus Estimate for Adecoagro’s 2026 earnings has been unchanged in the past 30 days. The Zacks Consensus Estimate for its 2026 sales suggests a decline of 14.4% from the year-ago period’s reported figure, while the consensus mark for earnings indicates significant growth. The Zacks Rank #1 stock has rallied 25.8% in the past year.
Price & Consensus: AGRO
Corteva: This Wilmington, DE-based pure-play agriculture company is poised to drive above-market growth through its industry-leading product pipeline and rigorous approach to innovation and operating discipline. It is poised to accelerate its pace of innovation and existing leadership position in the high-value sector to meet the increasing market demand for naturally derived products through three collaboration agreements. Strong price execution in seed, supply-chain flexibility and solid market demand for its balanced and differentiated new product portfolios drive CTVA’s performance.
The Zacks Consensus Estimate for Corteva’s 2026 earnings has been unchanged in the past 30 days. The Zacks Consensus Estimate for its 2026 sales and earnings suggests growth of 4.4% and 7.2%, respectively, from the year-ago period’s reported figures. The Zacks Rank #3 company has delivered an earnings surprise of 26%, on average, in the trailing four quarters. The CTVA stock has rallied 28.3% in the past year.
Price & Consensus: CTVA
Archer Daniels: This Chicago, IL-based agricultural product company’s leadership in critical global trends, such as flexitarian diets, nutrition and sustainable materials, has contributed to its momentum. Its focus on investing in assets and technological capabilities to serve customers efficiently is likely to be a significant growth driver. Solid demand, improved productivity and product innovations have been aiding the company. Its Readiness program, positive cash flow and solid performance at the Nutrition unit have been supporting the results. The Zacks Rank #3 company has been progressing well on its three strategic pillars — optimize, drive and growth.
Archer Daniels is poised to benefit from the robust performance of its Nutrition segment, owing to significant gains in the Human and Animal Nutrition units. The Zacks Consensus Estimate for ADM’s 2026 earnings has moved up 6.6% in the past seven days. The Zacks Consensus Estimate for Archer Daniels’ 2026 sales and earnings suggests growth of 3.9% and 22.7%, respectively, from the year-ago period’s reported figures. It delivered an earnings surprise of 3.8%, on average, in the trailing four quarters. The company has rallied 52.3% in the past year.
Price & Consensus: ADM
Scotts Miracle-Gro: This Marysville, OH-based company sells a broad range of lawn and garden care products, as well as solutions for indoor and hydroponic gardening, serving customers across the United States and international markets. The company is emerging from a multi-year reset as a higher-quality, cash-generative consumer staples business. Management is refocusing on core lawn and garden brands, driving consistent volume growth, expanding margins and strengthening the balance sheet. A strategic mix shift toward higher-margin branded products, accelerating e-commerce penetration and disciplined cost savings underpin earnings growth.
With a resilient category, powerful brands and shareholder-friendly capital returns, SMG offers an improving risk-reward profile. The Zacks Consensus Estimate for SMG’s fiscal 2026 earnings moved up 0.5% in the past 30 days. The Zacks Consensus Estimate for Scotts Miracle-Gro’s fiscal 2026 sales suggests a decline of 2.9%, while the earnings estimate indicates a 14.2% decline from the year-ago period’s reported figure. It delivered an earnings surprise of 10.2%, on average, in the trailing four quarters. The Zacks Rank #3 company has risen 8.7% in the past year.
Price & Consensus: SMG
Mission Produce: This Oxnard, CA-based company is engaged in sourcing, farming, packaging, marketing and distributing avocados, mangoes and blueberries to food retailers, distributors and foodservice customers in the United States and internationally. By effectively integrating its sales operations with sourcing teams, the company has demonstrated an exceptional ability to meet customer demand while optimizing per-unit margins. This alignment allows Mission Produce to leverage a sustained higher pricing environment, ensuring profitability and consistent performance in its Marketing and Distribution segment.
The Zacks Consensus Estimate for Mission Produce’s fiscal 2026 earnings has been unchanged in the past 30 days. The Zacks Consensus Estimate for its fiscal 2026 sales and earnings suggests declines of 10.2% and 10.1%, respectively, from the year-ago period’s reported figures. The Zacks Rank #3 company has delivered a significant earnings surprise of 126.5%, on average, in the trailing four quarters. The AVO stock has rallied 24.2% in the past year.
Price & Consensus: AVO
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5 Agriculture Operations Stocks to Watch Despite Trade-Related Challenges
The Zacks Agriculture – Operations industry continues to face persistent structural challenges, including volatile commodity prices, elevated input and labor costs, trade uncertainties, and rising operating expenses. These pressures are squeezing margins, disrupting productivity and testing long-term sustainability, forcing companies to strike a careful balance between near-term profitability and strategic resilience.
Despite these headwinds, the industry’s long-term outlook remains favorable. Ongoing innovation across seeds, crop inputs, food processing and supply chains is unlocking growth opportunities, while rising consumer preference for healthier, sustainably produced food is reshaping demand. The rapid adoption of alternative proteins, continued efficiency gains in grain handling, storage and logistics, and robust demand from emerging markets further reinforce the growth trajectory. Strategic acquisitions, partnerships and capacity expansions are enabling companies to scale operations and diversify revenue streams.
Against this backdrop, industry leaders such as Corteva Inc. (CTVA - Free Report) , Archer Daniels Midland Company (ADM - Free Report) , The Scotts Miracle-Gro Company (SMG - Free Report) , Adecoagro S.A. (AGRO - Free Report) and Mission Produce Inc. (AVO - Free Report) are well-positioned to navigate volatility and capitalize on evolving global food and agriculture trends.
About the Industry
The Zacks Agriculture – Operations industry comprises companies that produce or procure, transport, store, process and distribute agricultural commodities to consumers. It also distributes ingredients to other parts of the agriculture industry (including clothing, animal feed, energy and industrial products). Some industry players engage in dairy operations, land transformation activities and the development of food ingredients using gene-editing technology. The industry encompasses production activities related to the traditional farming of crops (like corn, soybean, wheat and cotton), and livestock and poultry products (including meat, dairy and eggs). The products are mainly sold at grocery stores or exported overseas. These are also used as feedstock for other industries. For example, cotton is used in the clothing industry and corn is used in the ethanol industry.
Factors Shaping the Future of Agriculture - Operations Industry
Elevated Costs: Agricultural companies face rising costs due to fluctuating commodity prices, inflation-driven input increases and trade uncertainties, all of which are squeezing profitability. Inflation-driven surges in input costs are significant challenges, raising production expenses and narrowing margins. To combat these pressures, companies have adopted pricing strategies and improved supply-chain resilience through partnerships and distribution initiatives. However, commodity cost inflation is expected to persist, maintaining pressure on margins in the near term.
Additionally, companies are managing higher SG&A expenses, driven by performance-related compensation, project costs and technology investments to stay competitive. These elevated operating expenses and ongoing SG&A deleverage may continue to weigh on profitability.
Agricultural Export/Import Projections: The February 2026 outlook of the U.S. Department of Agriculture projects agricultural exports of $174 billion for fiscal 2026 (ending Sept. 30, 2026), up $1 billion from the December forecast of $173 billion. The uptick is primarily driven by stronger export volumes expected for corn, and livestock, poultry and dairy. Corn exports are expected to rise by $0.9 billion to $18.5 billion, while livestock, poultry and dairy exports are likely to increase by $0.6 billion to $39.1 billion.
Organic Products & Innovation in Focus: The industry has gained from rising consumer demand for healthier food, prompting a shift toward organic farming practices and reduced use of chemicals and pesticides. Innovations in food processing, enhanced grain-handling techniques, increased storage capacity and strong demand from emerging markets are driving growth. As healthy eating trends expand, alternative protein consumption is expected to rise. To align with trends in food security, health and well-being, industry players are prioritizing productivity and innovation. Companies are also investing in acquisitions and joint ventures to create high-quality ingredients and solutions that meet the growing demand for healthy products.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Agriculture – Operations industry is within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #195, which places it in the bottom 20% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries resulted from a negative aggregate earnings outlook for the constituent companies. Looking at the aggregate earnings estimate revisions, analysts are gradually losing confidence in this group’s earnings growth potential.
Before we present a few stocks that you may want to consider for your portfolio, let us look at the industry’s recent stock-market performance and valuation picture.
Industry vs. Broader Market
In a year, the Zacks Agriculture – Operations industry has outperformed the Zacks Consumer Staples sector but underperformed the S&P 500.
The stocks in the industry have collectively rallied 21.7% in a year compared with a 0.4% return for the sector and 21.9% growth for the Zacks S&P 500 composite.
1-Year Price Performance
Agriculture - Operations Industry's Valuation
On the basis of the forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing Consumer Staples stocks, the Agriculture – Operations industry is currently trading at 15.99X compared with the S&P 500’s 21.63X and the sector’s 17.03X.
Over the last five years, the industry traded as high as 17.43X, as low as 11.09X and at the median of 14.13X, as the chart below shows.
Price-to-Earnings Ratio (Past 5 Years)
5 Agriculture Operations Stocks to Watch
One stock in the Zacks Agriculture – Operations universe currently sports a Zacks Rank #1 (Strong Buy), while none of the stocks have a Zacks Rank #2 (Buy). We have highlighted four other stocks currently sporting a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Adecoagro: This Luxembourg-based farm products company engages in agricultural and agro-industrial activities in Argentina, Brazil, Chile and Uruguay. The company offers a differentiated agribusiness exposure with scale, asset backing and operational flexibility across sugar, ethanol, crops, rice and dairy. Strategic diversification and hedging are helping mitigate commodity price volatility, while farmland assets continue to appreciate. Although leverage has risen due to the Profertil acquisition, management is focused on cost actions and capital allocation discipline.
Over the cycle, AGRO’s integrated platform, strong asset base and cash-generating core support long-term value creation. The Zacks Consensus Estimate for Adecoagro’s 2026 earnings has been unchanged in the past 30 days. The Zacks Consensus Estimate for its 2026 sales suggests a decline of 14.4% from the year-ago period’s reported figure, while the consensus mark for earnings indicates significant growth. The Zacks Rank #1 stock has rallied 25.8% in the past year.
Price & Consensus: AGRO
Corteva: This Wilmington, DE-based pure-play agriculture company is poised to drive above-market growth through its industry-leading product pipeline and rigorous approach to innovation and operating discipline. It is poised to accelerate its pace of innovation and existing leadership position in the high-value sector to meet the increasing market demand for naturally derived products through three collaboration agreements. Strong price execution in seed, supply-chain flexibility and solid market demand for its balanced and differentiated new product portfolios drive CTVA’s performance.
The Zacks Consensus Estimate for Corteva’s 2026 earnings has been unchanged in the past 30 days. The Zacks Consensus Estimate for its 2026 sales and earnings suggests growth of 4.4% and 7.2%, respectively, from the year-ago period’s reported figures. The Zacks Rank #3 company has delivered an earnings surprise of 26%, on average, in the trailing four quarters. The CTVA stock has rallied 28.3% in the past year.
Price & Consensus: CTVA
Archer Daniels: This Chicago, IL-based agricultural product company’s leadership in critical global trends, such as flexitarian diets, nutrition and sustainable materials, has contributed to its momentum. Its focus on investing in assets and technological capabilities to serve customers efficiently is likely to be a significant growth driver. Solid demand, improved productivity and product innovations have been aiding the company. Its Readiness program, positive cash flow and solid performance at the Nutrition unit have been supporting the results. The Zacks Rank #3 company has been progressing well on its three strategic pillars — optimize, drive and growth.
Archer Daniels is poised to benefit from the robust performance of its Nutrition segment, owing to significant gains in the Human and Animal Nutrition units. The Zacks Consensus Estimate for ADM’s 2026 earnings has moved up 6.6% in the past seven days. The Zacks Consensus Estimate for Archer Daniels’ 2026 sales and earnings suggests growth of 3.9% and 22.7%, respectively, from the year-ago period’s reported figures. It delivered an earnings surprise of 3.8%, on average, in the trailing four quarters. The company has rallied 52.3% in the past year.
Price & Consensus: ADM
Scotts Miracle-Gro: This Marysville, OH-based company sells a broad range of lawn and garden care products, as well as solutions for indoor and hydroponic gardening, serving customers across the United States and international markets. The company is emerging from a multi-year reset as a higher-quality, cash-generative consumer staples business. Management is refocusing on core lawn and garden brands, driving consistent volume growth, expanding margins and strengthening the balance sheet. A strategic mix shift toward higher-margin branded products, accelerating e-commerce penetration and disciplined cost savings underpin earnings growth.
With a resilient category, powerful brands and shareholder-friendly capital returns, SMG offers an improving risk-reward profile. The Zacks Consensus Estimate for SMG’s fiscal 2026 earnings moved up 0.5% in the past 30 days. The Zacks Consensus Estimate for Scotts Miracle-Gro’s fiscal 2026 sales suggests a decline of 2.9%, while the earnings estimate indicates a 14.2% decline from the year-ago period’s reported figure. It delivered an earnings surprise of 10.2%, on average, in the trailing four quarters. The Zacks Rank #3 company has risen 8.7% in the past year.
Price & Consensus: SMG
Mission Produce: This Oxnard, CA-based company is engaged in sourcing, farming, packaging, marketing and distributing avocados, mangoes and blueberries to food retailers, distributors and foodservice customers in the United States and internationally. By effectively integrating its sales operations with sourcing teams, the company has demonstrated an exceptional ability to meet customer demand while optimizing per-unit margins. This alignment allows Mission Produce to leverage a sustained higher pricing environment, ensuring profitability and consistent performance in its Marketing and Distribution segment.
The Zacks Consensus Estimate for Mission Produce’s fiscal 2026 earnings has been unchanged in the past 30 days. The Zacks Consensus Estimate for its fiscal 2026 sales and earnings suggests declines of 10.2% and 10.1%, respectively, from the year-ago period’s reported figures. The Zacks Rank #3 company has delivered a significant earnings surprise of 126.5%, on average, in the trailing four quarters. The AVO stock has rallied 24.2% in the past year.
Price & Consensus: AVO