3 Agriculture And Potash Stocks On The Rise In 2017

Last week, we reported momentum in the agricultural commodities market. We wrote Why Agricultural Commodities Could Start A New Bull Market In 2017. Meantime, agricultural commodities continue to show strength as evidenced by another rise of 1.7 percent of VanEck Vectors Agribusiness ETF (MOO) representing the sector. In this article, we identify 3 agriculture and potash stock with strong momentum which investors are watching closely in 2017.

There is a lot of speculation in the media that Trump is creating volatility in the agricultural commodities market. While that could be true, it is also clear that market segment is clearly on the rise in 2017. The more important data point is that money managers are actively and aggressively buying softs, suggesting agriculture and potash stocks continue to rise in 2017.

Given the data points outlined in this article, it is clear that Potash Corporation of Saskatchewan (POT) is a darling among investors at the start of 2017. Both fundamentals and supply/demand look great. InvestingHaven’s research team confirms this viewpoint.

Potash stock: Potash Corporation of Saskatchewan Inc. (POT)

With a market cap of $15B and a P/E ratio of 33, Potash Corporation is the market’s top favorite. The company has a great globally and industrial diversification. The company has a short float ratio of only 2%, a cash position of $150M, and an EPS of 0.10 in the last quarter.

Today the market confirmed its bullish stance as the stock price of POT blasted through resistance.

(Click on image to enlarge)

Potash Corp POT breakout 2017

Agriculture stock: The Mosaic Company (MOS)

Mosaic Company has a smaller market cap of POT: $11B. Its P/E ratio is 25, and that is very healthy. EPS is 1.25.

The company has volatile quarters, with alternating rising and falling revenue and profits.

The short float ratio on this stock is 9%.

The chart setup allows for more gains, as the stock did not officially break out yet.

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Power Hedge 4 years ago Contributor's comment

Just out of curiousity, why exclude SQM? It's one of the biggest potash producers on the planet. Plus, it's also a huge producer of lithium which means that if you believe in electric cars and TSLA's battery packs, you almost have to believe in it. But the market generally ignores it's lithium reserves. Is that why?