The Motley Fool

A Top Growth Stock I’d Buy Right Now With $1,000

Money growing in soil , Business success concept.
Image source: Getty Images

Nutrien (TSX:NTR)(NYSE:NTR) is an agricultural nutrient giant operating in Canada. Nutrien has the opportunity to leverage and further strengthen the company’s trusted and direct relationship with growers across North and South America and Australia, with year-round and full-acre agronomic support and advice. Nutrien’s position is further strengthened by the company’s investments in an integrated digital hub, which streamlines data collection and the measurement of sustainability performance, leveraging one of the widest ranges of proprietary and third-party products and value-added services in the industry.

New carbon economy

Further, Nutrien is well positioned to succeed and support all aspects of carbon credit generation and monetization given the breadth of the company’s assets, capabilities, digital platform, industry leadership and access to and strong relationships with growers. In the coming years, Nutrien plans to call on companies and leaders across the agriculture industry as well as governments to come together to put in place the systems and policies needed to establish a new carbon economy for agriculture.

In addition, Nutrien appears to believe that climate change is one of the world’s biggest issues. From a people perspective, the company reported the results of the 2020 employee engagement survey, where the overall engagement score was 89% — a leading score among peers.

Global inclusion council

In 2020, the company established a global inclusion council of senior leaders from each business unit and geography. It also structured a new equity, diversity, and inclusion (EDI) centre of excellence, which will be operationalized in the third quarter of 2021, and the company plans to provide targets and goals.

Further, in November last year, Nutrien was named one of Canada’s Top Employers for the second year in a row. This is one of several awards and recognitions Nutrien has received recently in addition to Achievers 50 Most Engaged Workplaces, Canada’s Top Employers for Young People, Canada’s Best Diversity Employers, and Saskatchewan’s Top Employer.

Giving back to communities

Nutrien also gave back to the communities in which it operated, particularly in a year of increased need. In 2020, the company contributed $18 million in community investment, including approximately $2 million for hunger relief, working with over 200 charities supporting food programs in North America, Australia, South America and Trinidad. Disaster relief needs were also high, and the company donated nearly $250,000 to local communities impacted by fires in the western United States and Australia as well those impacted by the Derecho storm in Iowa and hurricanes in the southern U.S.

Improving market fundamentals

Looking ahead, it appears that Nutrien is the best-positioned company in the agricultural sector to capitalize on improving market fundamentals and to capture additional potash volume the market needs by using the company’s five million tonnes of strategic available capacity. Nutrien has levers to grow the company’s earnings significantly, with actions under the company’s control, and as market fundamentals continue to improve.

Nutrien will also benefit from stronger global agricultural markets and the expected improvement in the fertilizer cycle. As always, the company appears set to focus on what it can control and follow through on commitments.

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.

The Motley Fool recommends Nutrien Ltd. Fool contributor Nikhil Kumar has no position in any of the stocks mentioned. 

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.