3 Top Agriculture Stocks to Buy on the TSX Today

These three agriculture stocks offer some strong value, with one even up 20% in the last year! And more upside is likely ahead in 2024.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published December 13, 2023 3:30 pm EST

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In a market filled with uncertainty, agriculture stocks certainly provide investors with confidence. That confidence comes from knowing that these investments will continue to thrive in the years to come, if perhaps with a few bumps along the way.

So today, let’s look at three agriculture stocks that should offer a huge deal for investors willing to hold long term.

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Nutrien

Nutrien (TSX: NTR) stock proved to investors its worth two years ago when shares soared to all-time highs. Yet, it practically crashed and burned after the market started to drop. Despite lower prices, production remains strong for Nutrien stock. And that is likely to continue in the future.

That’s because no matter what, we need crop nutrients. And in the case of Nutrien stock, the company has a long history of acquiring businesses to consolidate a segmented industry. So if you’re looking for a a stock providing a steal, this could be it.

Nutrien stock is one of the agriculture stocks trading in value territory. Shares trade at just 12 times earnings, with a dividend yield at 3.97% as of writing. And while shares are down 29% in the last year, there should be a recovery as prices recover as well.

Teck resources

If you’re fearful about too much focus on crop nutrients, then perhaps consider a more diversified company such as Teck Resources (TSX: TECK.B). Teck stock is a strong option on the TSX today as it offers more than potash. Yet again, it also offers strong value with prices remaining fairly low.

Teck stock, however, has been making strong moves to strengthen its bottom line. It has been selling off non-core assets, and even now has very little debt to manage. So again, if you’re perhaps looking for a stock that can balance out the current market, it’s one of the agriculture stocks to consider.

Teck stock trades in value territory as well, at just 12.1 times earnings. It offers a 0.97% dividend yield, and again with very little debt. As of writing it would take just 38% of its equity to pay off all debts. So it’s another to consider on the TSX today.

Ag Growth

Now let’s go with a business that doesn’t have to do with the actual growing of agriculture, but the support of it. Ag Growth International (TSX: AFN) is that stock, providing storage, aeration, and other equipment that supports the agriculture industry.

And in this case, AFN stock continues to do well among agriculture stocks. It remains a buy recommendation across the board from analysts, and its earnings reports have either beat or narrowly missed estimates.

Overall, the company sees an uptick in the market and a strong future outlook. For now, shares have performed quite well, up 20% in the last year! Yet it still offers value, trading at 0.71 times sales, with a 1.16% dividend yield. So certainly consider it among the other agriculture stocks on this list. After all, we all need to eat. So supporting stocks that support you is a no brainer move on the TSX today.