Navellier's Top 3 Agricultural stocks

Deere(DE) is the world's largest farm equipment manufacturer and a leading producer of construction, forestry and commercial and residential lawn care equipment. Unlike in Eastern Europe, where wheat production has slowed, U.S. crops have surged in the past several months. Currently, the country is producing a record number of crop exports. The higher demand for crops is leading to a greater need for farm equipment.

Although agriculture only accounts for about 1% of the U.S. economy, the actual impact of surging prices could be 10 times greater once spending on equipment, seeds, grain handling and food processing is calculated. This is why Deere stands to capitalize on high agricultural commodity prices. I see this as a great way to play the overall trend in higher food prices that is developing, along with the decline in the U.S. dollar.

Agrium(AGU) is a major producer and marketer of fertilizers in North America. The company operates plants in Argentina, Canada and the United States that produce mostly nitrogen, as well as potash and phosphate products. These plants have the capacity to produce more than 8 million tons of the nutrients per year. In addition to supplying wholesalers, Agrium operates more than 826 retail outlets in the United States and South America. The company has had trouble in recent quarters living up to analyst expectations, so if the company meets or beats in its next report this could be a runaway winner.


CF Industries (CF) is a regional agricultural firm that manufactures and markets nitrogenous and phosphate fertilizers. The company operates a network of manufacturing and distribution facilities, primarily in the Midwest. It's a no-brainer when it comes to understanding why fertilizer companies are doing so well right now. CF is a go-to company when farmers need to boost crop yields to meet the global demand for food.

CF has had some of the same issues as AGU when it comes to earnings, but the company has seen improving fundamentals over the past six months, and looks like shares will continue their march higher in the coming months.