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Best stocks in farm equipment, agricultural commodities rise on increased food safety


Is America concerned about food security as we face a potential recession and agricultural equipment and supplies are in short supply? One would think so, based on how IBD 50 Best stock has built base.




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Agricultural equipment manufacturer Deere (DE), fertilizer company CF Industries (CF) and Mosaic (MOS), and suppliers of agricultural products Darling ingredients (DAR) are on IBD 50posted a second consecutive weekly gain.

Shared by Americans think The US economy is in recession rose to 61% in October from 59% in September, according to the IBD/TIPP Economic Optimism Index.

Of course, high inflation is exacerbating food insecurity, making it difficult for some households to buy food and other agricultural commodities. And as the conflict between Russia and Ukraine flares up, fertilizers and other agricultural commodities are facing supply shortages.

Fertilizer stocks CF Industries and Mosaic are among the gainers as they try to shrink fertilizer supply. CF is consolidating with a buy point of 119.70, according to MarketSmith . chart analysis.

CF based on Deerfield, Ill. Make nitrogen fertilizers, including urea and ammonia nitrate. A member of the agricultural industry, the fertilizer stock has all the signs for a Industry Leader IBD: ONE Overall Rating out of 98, Relative Strength Rating 97, plus one Earnings Per Ranked Share of 99, the highest possible. That’s enough to place it first among 13 stocks in its agrochemical group, according to Check inventory. The group itself 119th place get out 197 industry groups of IBD.

Best stocks to overcome supply shortage

CF will report third-quarter earnings on Wednesday. Analysts tracked by FactSet saw profits jump 226% to $3.33 a share from $1.02 a year earlier. Revenue is expected to grow 74% to $2.37 billion. For the full year, earnings were pegged up 184% to $18.62 billion with an 84% revenue increase to $11.71 billion.

Mosaic stock is not performing as well as CF as it continues to look for direction. However, the stock is trading in line with the 50-day line and just short of the 200-day line. Shares are down 35% since hitting a 52-week high on April 18 but have been climbing for several weeks.

Mosaic will report earnings on Nov. 7. Plymouth, Minn.-based phosphate fertilizer maker. has a Composite Rating of 89 and an RS Rating of 90.

The agricultural equipment industry has also grown and is currently ranked 48th. Deere is the highest rated company in the agricultural machinery industry group, ahead of the irrigation company. Lindsay (LNN), based on Check out the IBD kho repository. The group climbed from 60th place a week ago and 127th three months ago.

John Deere stock is building a cup base with 393.03 buy points. Friday, the stock trades above that level and higher 50-day moving average and the 200-day line.

The Relative Strength Rating for Deere to climb to 91. Deere has a strong 98 Composite Rating. And it has a high A rating for the Cumulative/Distribution Rating, which tracks the relative strength of institutional buying versus selling.

Farm equipment, Farm supplies

Over the past year, the Moline-based company has reported uneven profit and sales growth.


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Earnings rose 16% in the most recent quarter to $6.16 per share. That brought in 22% more revenue, to $14.1 billion. Three gauges ago, Deere reported 72% higher EPS, down 25% year-over-year, then up 20%. Sales grew slightly more steadily, at 16%, 5%, and then 11%, respectively, before rising 22% last quarter.

Deere is expected to release its fiscal 2022 fourth-quarter results on November 23. FactSet’s consensus estimate is to earn $7.12 a share on sales of $13.46 billion. . Analysts expect Deere earnings to grow 14% next year to $26.88 per share from a 2022 earnings forecast of $22.85 per share.

Darling, which develops and manufactures natural ingredients from edible and non-edible biological nutrients, comes in a cup with a handle and is getting close to an 80.15 purchase. It is trading well beyond the 50-day and 200-day lines.

This month, Darling announced it was buying Gelnex, a Brazilian collagen producer, for about $1.2 billion. Medical, pharmaceutical, sports medicine and research companies use its biomedical gelatin products. The company also serves the biofuels, agriculture and food industries.

Darling is expected to announce third-quarter earnings on Nov. 8. Analysts expect third-quarter earnings to grow to $1.45 per share on $1.64 billion in revenue. Darling is ranked number 1 in the agricultural sector.

Follow Michael Molinski on Twitter @IMmolinski

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