Sustainable agriculture stocks are poised for strong growth in 2023. All as more people become aware of the importance of preserving agricultural resources. In fact, there are a number of companies that specialize in sustainable agriculture, producing organic seeds and fertilizer. In addition, there are a number of investment funds and exchange-traded funds (ETFs) that focus specifically on sustainable agriculture. Many are providing investors with the opportunity to align their portfolios with their values and support companies that are making a positive impact on the environment.
| CNHI | CNH Industrial | $16.32 |
| YARIY | Yara International | $22.79 |
| BCPC | Balchem Corp. | $134.37 |
CNH Industrial (CNHI)
CNH Industrial (NYSE:CNHI) is a pure-play agriculture and construction company. The company is also seeing strong growth. Revenues, for example, increased by 31% to $6.943 billion. In addition, the company is agriculture first, with $5.37 billion of the $6.943 billion in total revenues coming from agricultural sales. In terms of sustainability, CNH Industrial’s efforts focus on its vehicles. The company offers a liquefied methane-powered tractor. and released an electric light-duty tractor prototype in late 2022. That model will be available for its New Holland and Case/International Harvester brands. CNH Industrial’s venture arm is investing heavily in circular farm concepts across its portfolio of automation, AI, and alternative propulsion companies.
Yara International (YARIY)
Yara International (OTCMKTS:YARIY) is a Norwegian multinational company that specializes in the production and distribution of fertilizers and other agricultural products. It is one of the world’s largest suppliers of nitrogen-based fertilizers, with operations in over 60 countries. Yara International’s products are used by farmers to increase crop yields and improve soil health, and the company has a strong commitment to sustainable agriculture and environmental responsibility. The company’s stock is a popular choice for investors looking to invest in the agriculture and fertilizer sectors.
2022 was a banner year for the company. In fact, sales increased from $16.6 billion to $24.1 billion during that timeframe. What I find particularly impressive about the company from a fundamental perspective, is its ability to create value as measured by return on invested capital (ROIC) in 2022. For 2022 overall, the company reached an ROIC of 25.7% and achieved a still impressive ROIC of 20.7% in Q4.
Balchem (BCPC)
Balchem (NASDAQ:BCPC) is another specialty chemicals and ingredients manufacturer selling across a variety of industries, including food, pharmaceuticals, and animal nutrition. The company’s products are designed to improve the quality and efficiency of food production, and its proprietary technologies help to enhance the nutritional value of food. Balchem is well-positioned for continued success in the years to come, as demand for specialty chemicals and ingredients continues to grow.
Balchem won’t release the full fiscal year 2022 results until Feb. 24. However, its 2022 performance through Q3 was strong. Revenues jumped 21.2% to $709.8 million with earnings, EPS, and EBITDA all growing by double digits during the same period. The company was recently named among the most responsible U.S. companies and appears to be making significant progress toward its stated goal to reduce its greenhouse emissions and water use by 25% by 2030.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
