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5 Agriculture Operations Stocks to Benefit From Innovation-Driven Growth
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The Zacks Agriculture – Operations industry has meaningful long-term tailwinds. Innovation across seeds, crop inputs, processing and supply chains is opening growth avenues, while consumers’ push for healthier, sustainably produced food continues to reshape demand. Momentum in alternative proteins, efficiency upgrades in grain handling, storage and logistics, and steady demand from emerging markets strengthen the industry’s trajectory. Acquisitions, partnerships and capacity expansions are also helping companies scale and diversify.
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 benefit from the evolving global food and agriculture trends.
However, the industry participants continue 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.
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
Organic Products & Innovation in Focus: The industry has gained from rising consumer demand for healthier food, accelerating a shift toward organic farming and lower chemical and pesticide use. 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.
Agricultural Export/Import Projections: The May 2026 outlook of the U.S. Department of Agriculture projects agricultural exports of $176.5 billion for fiscal 2026 (ending Sept. 30, 2026), up $2.5 billion from the February forecast of $174 billion. The uptick is primarily driven by stronger export volumes expected for wheat, oilseeds and products, horticultural products, and livestock, poultry and dairy. Wheat exports are expected to rise by $0.3 billion to $6.2 billion, and oilseeds and products exports are expected to increase by $0.7 billion to $30.8 billion. Meanwhile, livestock, poultry and dairy exports are likely to grow by $0.6 billion to $39.7 billion. Exports for horticultural products are expected to rise by $0.5 billion to $42.6 billion.
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.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Agriculture – Operations industry is within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #112, which places it in the top 45% 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 bright 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 top 50% of the Zacks-ranked industries resulted from a positive aggregate earnings outlook for the constituent companies. Looking at the aggregate earnings estimate revisions, analysts are gradually gaining 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 4.7% in a year against a 3.3% decline for the sector and compared with 25.9% 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 14.88X compared with the S&P 500’s 21.43X and the sector’s 16.68X.
Over the last five years, the industry traded as high as 17.09X, as low as 11.2X and at the median of 14.16X, as the chart below shows.
Price-to-Earnings Ratio (Past 5 Years)
5 Agriculture Operations Stocks to Watch
None of the stocks in the Zacks Agriculture – Operations universe currently sports a Zacks Rank #1 (Strong Buy), while one stock has a Zacks Rank #2 (Buy). We have highlighted four other stocks currently carrying a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
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 #2 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 been unchanged in the past 30 days. The Zacks Consensus Estimate for Archer Daniels’ 2026 sales and earnings suggests growth of 32.4% and 9.9%, respectively, from the year-ago period’s reported figures. It delivered an earnings surprise of 5.4%, on average, in the trailing four quarters. The company has rallied 63.6% in the past year.
Price & Consensus: ADM
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 moved up 1.4% in the past 30 days. The Zacks Consensus Estimate for its 2026 sales and earnings suggests growth of 4.8% and 11.4%, respectively, from the year-ago period’s reported figures. The Zacks Rank #3 company has delivered an earnings surprise of 25.3%, on average, in the trailing four quarters. The CTVA stock has risen 2.7% in the past year.
Price & Consensus: CTVA
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 down by a penny in the past seven days. The Zacks Consensus Estimate for Scotts Miracle-Gro’s fiscal 2026 sales suggests a decline of 2.8%, while the earnings estimate indicates 16.6% growth from the year-ago period’s reported figure. SMG delivered an earnings surprise of 13.5%, on average, in the trailing four quarters. The Zacks Rank #3 company has declined 6.9% in the past year.
Price & Consensus: SMG
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 moved up 2.1% in the past 30 days. The Zacks Consensus Estimate for its 2026 sales suggests a growth of 42% from the year-ago period’s reported figure, while the consensus mark for earnings indicates significant growth. The Zacks Rank #3 stock has rallied 21% in the past year.
Price & Consensus: AGRO
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 15.9% and 15.2%, respectively, from the year-ago period’s reported figures. The Zacks Rank #3 company has delivered an earnings surprise of 30.1%, on average, in the trailing four quarters. The AVO stock has lost 7.4% in the past year.
Price & Consensus: AVO
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5 Agriculture Operations Stocks to Benefit From Innovation-Driven Growth
The Zacks Agriculture – Operations industry has meaningful long-term tailwinds. Innovation across seeds, crop inputs, processing and supply chains is opening growth avenues, while consumers’ push for healthier, sustainably produced food continues to reshape demand. Momentum in alternative proteins, efficiency upgrades in grain handling, storage and logistics, and steady demand from emerging markets strengthen the industry’s trajectory. Acquisitions, partnerships and capacity expansions are also helping companies scale and diversify.
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 benefit from the evolving global food and agriculture trends.
However, the industry participants continue 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.
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
Organic Products & Innovation in Focus: The industry has gained from rising consumer demand for healthier food, accelerating a shift toward organic farming and lower chemical and pesticide use. 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.
Agricultural Export/Import Projections: The May 2026 outlook of the U.S. Department of Agriculture projects agricultural exports of $176.5 billion for fiscal 2026 (ending Sept. 30, 2026), up $2.5 billion from the February forecast of $174 billion. The uptick is primarily driven by stronger export volumes expected for wheat, oilseeds and products, horticultural products, and livestock, poultry and dairy. Wheat exports are expected to rise by $0.3 billion to $6.2 billion, and oilseeds and products exports are expected to increase by $0.7 billion to $30.8 billion. Meanwhile, livestock, poultry and dairy exports are likely to grow by $0.6 billion to $39.7 billion. Exports for horticultural products are expected to rise by $0.5 billion to $42.6 billion.
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.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Agriculture – Operations industry is within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #112, which places it in the top 45% 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 bright 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 top 50% of the Zacks-ranked industries resulted from a positive aggregate earnings outlook for the constituent companies. Looking at the aggregate earnings estimate revisions, analysts are gradually gaining 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 4.7% in a year against a 3.3% decline for the sector and compared with 25.9% 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 14.88X compared with the S&P 500’s 21.43X and the sector’s 16.68X.
Over the last five years, the industry traded as high as 17.09X, as low as 11.2X and at the median of 14.16X, as the chart below shows.
Price-to-Earnings Ratio (Past 5 Years)
5 Agriculture Operations Stocks to Watch
None of the stocks in the Zacks Agriculture – Operations universe currently sports a Zacks Rank #1 (Strong Buy), while one stock has a Zacks Rank #2 (Buy). We have highlighted four other stocks currently carrying a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
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 #2 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 been unchanged in the past 30 days. The Zacks Consensus Estimate for Archer Daniels’ 2026 sales and earnings suggests growth of 32.4% and 9.9%, respectively, from the year-ago period’s reported figures. It delivered an earnings surprise of 5.4%, on average, in the trailing four quarters. The company has rallied 63.6% in the past year.
Price & Consensus: ADM
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 moved up 1.4% in the past 30 days. The Zacks Consensus Estimate for its 2026 sales and earnings suggests growth of 4.8% and 11.4%, respectively, from the year-ago period’s reported figures. The Zacks Rank #3 company has delivered an earnings surprise of 25.3%, on average, in the trailing four quarters. The CTVA stock has risen 2.7% in the past year.
Price & Consensus: CTVA
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 down by a penny in the past seven days. The Zacks Consensus Estimate for Scotts Miracle-Gro’s fiscal 2026 sales suggests a decline of 2.8%, while the earnings estimate indicates 16.6% growth from the year-ago period’s reported figure. SMG delivered an earnings surprise of 13.5%, on average, in the trailing four quarters. The Zacks Rank #3 company has declined 6.9% in the past year.
Price & Consensus: SMG
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 moved up 2.1% in the past 30 days. The Zacks Consensus Estimate for its 2026 sales suggests a growth of 42% from the year-ago period’s reported figure, while the consensus mark for earnings indicates significant growth. The Zacks Rank #3 stock has rallied 21% in the past year.
Price & Consensus: AGRO
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 15.9% and 15.2%, respectively, from the year-ago period’s reported figures. The Zacks Rank #3 company has delivered an earnings surprise of 30.1%, on average, in the trailing four quarters. The AVO stock has lost 7.4% in the past year.
Price & Consensus: AVO