Top Agri Stocks to Buy in 2023

Agri stocks are some of the best deals out there, with some of the most stable futures. Yet investors continue to ignore these heavy hitters.

| More on:
A tractor harvests lentils.

Source: Getty Images

Agriculture companies are some of the most essential companies these days. These companies, and, indeed, agri stocks in general, have taken on a larger role, as the world becomes more populated, and climate change affects crop outputs in a variety of ways.

Today, I’m going to look at three of the best agri stocks I would consider buying in 2023. Each of these companies provides the essentials to make sure you continue to have food to put on your table. Let’s get right into it.

Nutrien

I’m going to start off with one you’re already likely wondering about. While Nutrien (TSX:NTR) entered headlines last year, the soaring and falling of Nutrien stock wasn’t anything to do with what the company did or didn’t do.

Instead, sanctions against Russian potash after the invasion of Ukraine led to a major climb. With the market starting to see signs of a selloff, many investors chose to take their returns from Nutrien stock. In my opinion, we’re now at levels that investors should consider when looking at their next bulk buy.

Nutrien stock continues to expand its operations, merging a fractured industry and becoming one of the largest crop nutrient producers in the world. Yet right now, shares are down 33% from those all-time highs, trading at 5.23 times earnings. With a 2.51% dividend yield on top, it’s certainly one to consider this month.

Teck Resources

Another of the top agri stocks I’d consider is Teck Resources (TSX:TECK.B). Now, Teck stock does more than crop nutrient production, which is actually why I like it so much. The company provides investors with a diverse range of mineral production, from steel-making coal and silver to potash and fertilizers.

What’s also great is the company recently received half a billion from a sale, strengthening its already solid balance sheet. This saw shares soar up for Teck stock, yet it’s still a steal — especially if you’re looking for defensive stocks this month that could help you through a recession due to their status as an essential product provider.

Teck stock now trades at 6.3 times earnings, with a little 0.97% dividend yield that shouldn’t be ignored. Shares are up 30% in the last year alone, and it’s back near 52-week highs. But don’t let that stop you from considering this with your other top agri stocks this month. It’s bound to keep on climbing.

Verde Agritech

Now, here’s one you may not be so familiar with. Verde Agritech (TSX:NPK) is the last of my recommendations and by far the cheapest in terms of share prices. The company produces and sells fertilizers in Brazil and around the world.

Despite being one of the strong agri stocks producing fertilizer for a world in desperate need of it, shares are at just around $6. That’s far below where analysts estimate it should be, which is around $15 per share. So, this company could be a winning ticket for investors to consider in 2023 — especially if it continues its market-beating performance.

With shares trading at just 13.55 times earnings, it also remains in value territory. The only downside here is that there isn’t a dividend, but the stock could easily double in 2023.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Nutrien. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Emerging Canadian AI Companies With Big Potential

These tech stocks are paving the way to an AI-filled future, but still offer enough growth ahead for a strong…

Read more »

Young Boy with Jet Pack Dreams of Flying
Tech Stocks

Is Constellation Software Stock a Buy, Sell, or Hold for 2025?

CSU stock has long been a strong option for high growth, high value stocks. But are there now too many…

Read more »

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »

Asset Management
Stocks for Beginners

TFSA: 4 Canadian Stocks to Buy and Hold Forever

Thinking about what to buy with the new TFSA contribution space in 2025? These four Canadian stocks are worth holding…

Read more »

concept of real estate evaluation
Stocks for Beginners

2 No-Brainer Real Estate Stocks to Buy Right Now for Less Than $1,000

These two real estate sector-focused stocks have the potential to deliver strong returns on your investments in the coming years.

Read more »

engineer at wind farm
Energy Stocks

Invest $20,000 in This Dividend Stock for $100 in Monthly Passive Income

This dividend stock has it all – a strong outlook, monthly income, and even more to consider buying today.

Read more »

stocks climbing green bull market
Stocks for Beginners

3 TSX Stocks Soaring Higher With No Signs of Slowing

Don't ignore stocks just because they look like they're at a high price. Instead, see exactly why they've driven so…

Read more »

Middle aged man drinks coffee
Dividend Stocks

Here’s the Average TFSA Balance at Age 35 in Canada

At age 35, it might not seem like you need to be thinking about your future cash flow. But ideally,…

Read more »