3 Stocks Leading the U.S. Agriculture Comeback

Core Insights - Global crop supplies have reached a cyclical low, necessitating increased agricultural production to avoid food inflation [2][3] - Three key stocks in the agricultural sector are highlighted: Deere & Co. (DE), Corteva Inc. (CTVA), and Archer-Daniels-Midland Co. (ADM), each offering different risk and reward profiles [2][3] Group 1: Deere & Co. (DE) - Deere's stock is currently priced at $394.31, with a P/E ratio of 11.48 and a dividend yield of 1.49% [6] - The stock has a price target of $433.28, indicating a potential upside of 10% from current levels [6] - Despite a projected 2.5% decline in EPS for the year, Deere's turf and utility equipment sales have seen double-digit growth, suggesting resilience in its business model [6][3] Group 2: Corteva Inc. (CTVA) - Corteva's stock is trading at $54.79, with a P/E ratio of 53.72 and a dividend yield of 1.17% [7] - The stock commands a significant premium, trading at 458% above the agricultural production industry's average P/E of 9.3x, justified by a projected 22.2% EPS growth [7] - Analysts project a price target of $63.29, representing a potential upside of 15% from current levels [7] Group 3: Archer-Daniels-Midland Co. (ADM) - Archer-Daniels' stock is priced at $60.65, with a P/E ratio of 9.48 and a dividend yield of 3.30% [10] - The stock trades at a discount compared to Deere and Corteva, with a price target of $67.50, indicating a potential upside of 11.5% [10] - With a low beta of 0.7, Archer-Daniels offers stability during high inflation periods, making it an attractive option for risk-averse investors [10]