Stock Groups

2 Fertilizer Stocks to Buy, 2 to Avoid By StockNews

by Mike Robinson

[ad_1]

© Reuters. 2 Fertilizer Stocks You Should Buy. 2 To Avoid

Food prices have risen due to low production and supply chain disruptions. The fertilizer sector should reap the benefits. This is how we see it. Nutrien (NYSE) and Yara International(OTC:) have the right infrastructure to capitalise on industry tailwinds. But given the challenges the industry faces, we think fundamentally weak fertilizer stocks Sociedad Química (SQM) and Scotts Miracle-Gro (SMG) could suffer a downtrend in the near term. Let’s discuss.Increasing food prices due to supply chain constraints and the impact of climate change on agricultural output should benefit the fertilizers industry significantly. However, the market has been hard hit by rising energy costs in Europe and China as well as plant shut downs and severe weather conditions.

Global fertilizer sales are expected to rise at a 5% rate to $323.38 million by 2028. Moreover, rising food prices will drive demand for fertilizers. Nutrien Ltd. (NTR), a well-established stock, is one of the best. Yara International ASA You should consider joining (YARIY).

However, given the current challenges facing the industry, we think fundamentally weak stocks in this space—Sociedad Química y Minera de Chile S.A. (SQM) and The Scotts Miracle-Gro Company (NYSE:)—could suffer a decline in the near term.

Continue reading on StockNews

Disclaimer Fusion MediaThis website does not provide accurate and current data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media does not accept any liability for trade losses that you may incur due to the use of these data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. Trading the financial markets is an extremely risky investment. Please make sure you are fully aware of all the costs and risks involved.



[ad_2]