Skip to main content

WHAT ARE WE LOOKING FOR?

Oversold agriculture stocks. The sector rode the alt-fuel burn-what-you-eat craze of the past couple years. Chinese and Indian demand for meat and fertilizer also sent the sector soaring. But it was sideswiped by this year's crash in commodity stocks, which have fallen further and harder than others.

TODAY'S SCREEN

Story continues below advertisement

We will revisit a screen we ran in March that looked at the shares held in the Claymore Global Agriculture exchange-traded fund. The ETF, which trades under the cute ticker COW and tracks the MFC global agriculture index, has fallen by 33 per cent this year. In comparison, the S&P 500 and the S&P/TSX composite index have fallen by 41 per cent and 40 per cent, respectively. The 16 shares listed are ranked by expected share growth in next year. Topping the chart is Brazil's Perdigao, which raises and processes pigs and chickens.

WHAT DID WE FIND?

Look at the second column. After a brutal year, many of the stocks listed have posted strong returns in the past month. This could be a sign momentum is on their side and a realization the food sector has been unfairly hit by the market crash and recession. (Are we eating less? No. And cheaper fuel is a blessing for farmers.) Given the beating most shares have taken, there could be some buying opportunities in agriculture.

*****

Agricultural stocks

1-month Y-to-d This This Next Next EPS
price price fiscal fiscal This fiscal fiscal Next 5-yr. Dividend
Dec. 22 change change yr. EPS yr. EPS year yr. EPS yr. EPS year hist. yield
Company name Symbol Industry price $ % % mean $ growth % PE mean $ growth % PE growth %
Perdigao PDA-N Food proc $27.60 -1.3 -43.9 0.83 -53.4 33.3 2.56 208.4 10.8 118.1 NA
Bachoco IBA-N Food proc $13.80 1.2 -56.6 0.46 -80.3 30.0 1.06 130.4 13.0 19.6 4.6
Calavo Growers CVGW-Q Food proc $11.50 43.8 -39.3 0.35 -31.4 32.9 0.79 98.6 14.6 -14.1 3.4
Tyson Foods Inc. TSN-N Food proc $8.05 56.3 -47.5 0.38 27.0 21.1 0.74 93.9 10.9 -31.6 NA
Hanfeng Evergree HF-T Other con svcs $4.51 6.9 -69.1 0.55 60.5 8.3 0.82 50.5 5.5 24.4 NA
Agria Corp. GRO-N Basic M-I $1.52 10.2 -85.4 0.23 -42.5 6.6 0.33 43.5 4.6 NA NA
Migao MGO-T Chemicals $5.36 75.2 -53.7 1.10 74.4 4.9 1.47 33.8 3.7 29.0 NA
Mosaic Co. MOS-N Chemicals $31.09 24.7 -67.0 7.59 69.5 4.1 9.13 20.3 3.4 134.8 0.5
Lindsay LNN-N Machinery $32.34 -15.9 -54.3 2.49 -8.1 13.0 3.05 18.5 10.6 51.6 0.8
Monsanto Co. MON-N Chemicals $66.29 -1.7 -40.6 4.56 25.2 14.6 5.31 16.5 12.5 69.6 1.3
Scotts Miracle SMG-N Chemicals $27.98 6.1 -25.2 2.06 0.7 13.6 2.37 14.6 11.8 67.3 1.7
Potash Corp. Sask. POT-N Chemicals $65.79 8.9 -54.3 10.96 234.2 6.0 13.95 13.6 4.7 87.6 0.5
FMC Corp. FMC-N Chemicals $41.14 19.2 -24.6 4.45 43.9 9.3 4.97 13.2 8.3 29.9 1.1
Fresh Del Monte FDP-N Food proc $23.05 0.4 -31.4 2.81 -12.7 8.2 2.94 4.7 7.8 5.9 NA
Cal-maine Foods CALM-Q Food proc $28.53 26.7 7.5 4.65 -27.3 6.1 4.76 2.4 6.0 31.0 2.4
Syngenta SYT-N Chemicals $35.94 20.9 -29.1 3.76 70.1 9.6 3.82 1.6 9.4 25.0 2.0

Note: Based on local currencies of the exchange

DOUGLAS COULL/THE GLOBE AND MAIL // SOURCE: THOMSON ONE

Report an error Editorial code of conduct
Tickers mentioned in this story
Unchecking box will stop auto data updates
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter