Sectors & IndustriesConsumer DefensiveFarm Products

Best Farm Stocks to Buy Now (2023)

Top farm stocks in 2023 ranked by overall Zen Score. See the best farm stocks to buy now, according to analyst forecasts for the farm products industry.

According to Zen Score, the 3 best farming stocks to buy right now are:

Cal Maine Foods (NASDAQ:CALM) is the top farm stock with a Zen Score of 61, which is 29 points higher than the farm industry average of 32. It passed 23 out of 38 due diligence checks and has strong fundamentals. Cal Maine Foods has seen its stock lose -12.49% over the past year, overperforming other farm stocks by 11 percentage points.

Cal Maine Foods has an average 1 year price target of $43.50, a downside of -15.86% from Cal Maine Foods's current stock price of $51.70.

Cal Maine Foods stock has a consensus Sell recommendation according to Wall Street analysts. Of the 2 analysts covering Cal Maine Foods, 0% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 50% have issued a Strong Sell.

Vital Farms (NASDAQ:VITL) is the second best farm stock with a Zen Score of 52, which is 20 points higher than the farm industry average of 32. It passed 17 out of 33 due diligence checks and has strong fundamentals. Vital Farms has seen its stock lose -3.73% over the past year, overperforming other farm stocks by 19 percentage points.

Vital Farms has an average 1 year price target of $16.00, an upside of 5.19% from Vital Farms's current stock price of $15.21.

Vital Farms stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Vital Farms, 50% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Davis Commodities (NASDAQ:DTCK) is the third best farm stock with a Zen Score of 50, which is 18 points higher than the farm industry average of 32. It passed 16 out of 33 due diligence checks and has strong fundamentals.

Out of 9 farm stocks that have issued dividends in the past year, the 3 farm stocks with the highest dividend yields are:

Brasilagro Brazilian Agricultural Real Estate Co (NYSE:LND) has an annual dividend yield of 12.82%, which is 9 percentage points higher than the farm industry average of 4.26%. Brasilagro Brazilian Agricultural Real Estate Co's dividend payout is not stable, having dropped more than 10% five times in the last 10 years. Brasilagro Brazilian Agricultural Real Estate Co's dividend has shown consistent growth over the last 10 years.

Brasilagro Brazilian Agricultural Real Estate Co's dividend payout ratio of 117.7% indicates that its high dividend yield might not be sustainable for the long-term.

Cal Maine Foods (NASDAQ:CALM) has an annual dividend yield of 8.34%, which is 4 percentage points higher than the farm industry average of 4.26%. Cal Maine Foods's dividend payout is not stable, having dropped more than 10% nine times in the last 10 years. Cal Maine Foods's dividend has not shown consistent growth over the last 10 years.

Cal Maine Foods's dividend payout ratio of 39.6% indicates that its high dividend yield is sustainable for the long-term.

Tyson Foods (NYSE:TSN) has an annual dividend yield of 3.76%, which is -1 percentage points lower than the farm industry average of 4.26%. Tyson Foods's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Tyson Foods's dividend has shown consistent growth over the last 10 years.

Tyson Foods's dividend payout ratio of -102.7% indicates that its dividend yield might not be sustainable for the long-term.

Farm stocks were down -1.01% in the last day, and down -0.89% over the last week. Adecoagro Sa was the among the top losers in the farm products industry, dropping -13% yesterday.

Adecoagro shares are trading lower after JP Morgan downgraded the stock from Neutral to Underweight and lowered its price target from $11.5 to $10.5.

Based on WallStreetZen's Valuation Score, the 3 most undervalued farm stocks right now are:

Davis Commodities (NASDAQ:DTCK) is the most undervalued farm stock based on WallStreetZen's Valuation Score. Davis Commodities has a valuation score of 71, which is 40 points higher than the farm industry average of 31. It passed 5 out of 7 valuation due diligence checks.

Fresh Del Monte Produce (NYSE:FDP) is the second most undervalued farm stock based on WallStreetZen's Valuation Score. Fresh Del Monte Produce has a valuation score of 57, which is 26 points higher than the farm industry average of 31. It passed 4 out of 7 valuation due diligence checks.

Fresh Del Monte Produce's stock has dropped -11.47% in the past year. It has overperformed other stocks in the farm industry by 12 percentage points.

Cal Maine Foods (NASDAQ:CALM) is the third most undervalued farm stock based on WallStreetZen's Valuation Score. Cal Maine Foods has a valuation score of 43, which is 12 points higher than the farm industry average of 31. It passed 3 out of 7 valuation due diligence checks.

Cal Maine Foods's stock has dropped -12.49% in the past year. It has overperformed other stocks in the farm industry by 11 percentage points.