Technology is quickly changing traditional agriculture methods and practices. New technologies are enhancing farm operations and offering innovations for the entities engaged in agricultural activities. These practices are creating new opportunities for the market to flourish strongly.
Considering the industry’s fruitful prospects, investors could consider keeping an eye on quality agriculture stocks such as Adecoagro S.A. (AGRO), FMC Corporation (FMC), and ICL Group Ltd (ICL) for potential gains.
Amid the continuously growing global population and growing concerns like climate change, fundamentals of traditional agriculture practices have to be reimagined with the integration of innovative technologies and lean towards sustainable farming.
To feed the world’s current and future population, which reached over 8 billion in 2025 and is estimated to reach beyond 9.7 billion in 2050, companies engaged in the agriculture segment are actively researching and incorporating innovations. Such trends are creating promising tailwinds for the agriculture technology market.
Arizton projects the global agritech market to expand at a CAGR of 12.3%, resulting in a market volume of $48.98 billion by 2030. Recent advancements have brought to light the transformative potential of technology to enhance crop quality and production processes and enhance farm management.
The agritech market’s future growth is driven by the adoption of transforming technologies like Artificial Intelligence (AI), the Internet of Things (IoT), drones, and robotics. This technology encourages sustainable agricultural practices and precision farming, optimizes productivity, and also contributes to conserving resources.
With these favorable trends in mind, let’s look at the fundamentals of the three best Agriculture stocks, beginning with the third choice.
Stock #3: Adecoagro S.A. (AGRO)
Headquartered in Luxembourg, AGRO operates as an agro-industrial company. The company operates in Farming and Sugar, Ethanol, and Energy segments. It engages in the production of a range of agricultural commodities, planting, harvesting, processing, and marketing of rice, genetic development of seeds, and production of dairy products.
In terms of forward non-GAAP P/E, AGRO is trading at 6.55x, 60.4% lower than the industry average of 16.56x. Likewise, the stock’s forward EV/Sales multiple of 1.41 is 11.2% lower than the industry average of 1.59. Also, its forward Price/Book of 0.83x is 74.8% lower than the industry average of 3.31x.
For the third quarter that ended September 30, 2024, AGRO’s gross sales grew 17.7% from the prior year’s quarter to $456.65 million, and its profit from operations amounted to $29.68 million. The company’s adjusted EBITDA was $110.90 million for the quarter.
In addition, the company’s adjusted net income stood at $27.89 million, or $0.28 per share for the period, respectively. Its total assets as of September 30, 2024, were $3.23 billion, compared to $3.16 billion as of December 31, 2023.
Analysts expect AGRO’s revenue for the fiscal year (ended December 2024) to increase 5.2% year-over-year to $1.52 billion, while its EPS is expected to grow 13.6% year-over-year to $1.65. Also, the company topped the consensus revenue estimates in three of the trailing four quarters.
Shares of AGRO have surged 13.8% over the past month and 8.7% over the past year to close the last trading session at $10.79.
AGRO’s promising fundamentals are reflected in its POWR Ratings. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
The stock has a B grade for Value. It is ranked #6 out of 24 stocks in the Agriculture industry.
Click here to access additional AGRO ratings for Sentiment, Stability, Momentum, Quality, and Growth.
Stock #2: FMC Corporation (FMC)
FMC is an agricultural sciences company that provides crop protection, plant health, and professional pest and turf management products. The company develops, markets, and sells crop protection chemicals consisting of insecticides, herbicides, fungicides, biologicals, crop nutrition, and seed treatment products.
Last year, on November 1, FMC completed the sale of its Global Specialty Solutions business to Environmental Science U.S. LLC as a strategic plan to focus solely on innovating products and services for the global crop protection market. The transaction enabled FMC to focus on its core agricultural business and will contribute to its continued growth and success.
Also, on September 30, 2024, the company announced an agreement with Ballagro Agro Tecnologia Ltd., a pioneer and leader in fungi-based bio solutions, to provide growers with a broad portfolio of differentiated biological solutions in Brazil. The agreement is part of FMC's strategic plan to grow its biological platform in key markets like Brazil.
During the fourth quarter that ended December 31, 2024, FMC reported revenue of $1.22 billion, up 6.8% from the prior year’s quarter. Its gross margin grew 20.4% from the year-ago value to $524.70 million. Its adjusted EBITDA of $338.90 reflects growth of 33.4% year-over-year.
In addition, adjusted after-tax earnings from continuing operations attributable to FMC stockholders came in at $224.60 million or $1.79 per share, up 68.4% and 67.3% year-over-year, respectively.
The company provided its first-quarter and full-year 2025 outlook. FMC expects between $750 million and $800 million for the first quarter of 2025. It also expects adjusted EBITDA of $105 million to $125 million and adjusted EPS of $0.05 to $0.15 for the same period.
For the full year, the company's revenue ranges from $4.15 billion to $4.35 billion. It projects adjusted EBITDA between $870 million - $950 million. And its adjusted EPS is expected to be $3.26 to $3.70.
Analysts expect FMC’s EPS to be $0.84 for the third quarter (ending September 2025), representing an improvement of 21.5% year-over-year. Also, its revenue for the same period is expected to increase 1.4% year-over-year to $1.08 billion. Moreover, it surpassed the consensus EPS estimate in each of the trailing four quarters.
Shares of FMC have plunged 21.3% year-to-date to close the last trading session at $38.25.
FMC’s sound fundamentals are reflected in its POWR Ratings. The stock has a B grade for Value, Quality, and Growth. Within the Agriculture industry, FMC is ranked #4 of 24 stocks.
Click here to access other ratings of FMC for Momentum, Sentiment, and Stability.
Stock #1: ICL Group Ltd (ICL)
Tel Aviv, Israel-based ICL operates as a global specialty minerals and chemicals company. The company operates through four segments: Industrial Products; Potash; Phosphate Solutions; and Growing Solutions.
On January 30, 2025, ICL’s sister company, GROWERS, a leader in agriculture retail solutions, announced customizable loyalty program technology enhanced with advanced AI. The technological integration of AI-driven insights with fully tailored loyalty initiatives has revolutionized the marketing tool to benefit retailers, farmers, and manufacturers.
The AI-driven loyalty program enables retailers and manufacturers to enjoy greater visibility into farmer purchasing preferences, resulting in improved product development and marketing.
On January 16, 2025, ICL signed a joint venture (JV) agreement with Shenzhen Dynanonic Co., Ltd. to establish lithium iron phosphate (LFP) cathode active material (CAM) production in Europe. The JV will expand the company’s global presence in the battery materials space.
The new facility at ICL's Sallent, Spain, to be established with an initial investment of approximately €285 million ($298.03 million), is currently in the planning stages. The project demonstrates ICL’s commitment to developing high-quality solutions for a sustainable supply chain.
During the third quarter that ended September 30, 2024, ICL reported sales of $1.75 billion, and its gross profit increased 1.8% year-over-year to $596 million. Its adjusted operating income grew 7% from the year-ago value to $243 million. The company’s adjusted EBITDA rose 10.7% year-over-year to $383 million.
Also, adjusted net income attributable to shareholders and adjusted EPS came in at $136 million and $0.11 for the quarter, respectively.
Street expects ICL’s revenue and EPS for the fiscal year (ending December 2025) to increase 4.3% and 11.4% year-over-year to $7.23 billion and $0.42, respectively. Moreover, the company has surpassed the consensus EPS estimates in each of the trailing four quarters.
ICL’s stocks have gained 46.2% over the past six months and 26.4% over the past year to close the last trading session at $6.17.
ICL’s POWR Ratings reflect its bright prospects. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
ICL has a B grade for Value, Stability, and Quality. It topped the list of 24 stocks in the Agriculture industry.
To see additional POWR Ratings of ICL for Growth, Sentiment, and Momentum, click here.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:
3 Stocks to DOUBLE This Year >
ICL shares were trading at $6.14 per share on Monday afternoon, down $0.03 (-0.49%). Year-to-date, ICL has gained 24.29%, versus a 2.34% rise in the benchmark S&P 500 index during the same period.
About the Author: Rjkumari Saxena
Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.
3 Agriculture Tech Stocks Feeding the World’s Future StockNews.com
