As inflation reaches new highs – due to the effects of the pandemic and the global oil crisis fueled by the Russia-Ukraine war – Europe is taking the brunt of it all. Aside from the ongoing energy security crisis, a bigger problem is now unveiling – food security.
Europe’s agricultural sector is struggling as waves of farmer strikes & protests continue to spread across the continent, demanding government policies to reflect the needs of the industry. Nowadays, Dutch farmers are taking to the streets to protest the upcoming regulations, blocking main roads and supermarket entrances.
As part of the government’s measure to tackle this, the Netherlands is eyeing mandatory purchases of farms that would lead to closures. However, these initiatives could force an average of 30% of the country’s farms out of business.
Climate change, rising automation, international politics, and changing consumer tastes are making it more difficult than ever for family-owned farms to operate.
In the U.S, Bill Gates has recently become the largest private owner of farmland in the country. Along with his wife Melinda Gates, Gates owns over 268,000 acres of farmland diversified in 19+ states – worth an estimated $690 million. With this in place, it is now crystal clear that the traditional ways of owning, operating, and profiting from farmland will probably change forever.
While conspiracy and speculation continue to arise about Gates using farmland to make Agri-Tech and financial investments, his landownership has attracted particular attention as the billionaire attempts to make a name for himself in climate advocacy.
In fact, Gates has positioned himself – and the Gates Foundation – as a leader in what the future of agriculture should look like, especially with regard to technology.
In light of these huge trends, geopolitical issues & climate change, Agriculture stocks are in a good position to benefit immensely. In this article, we’ll look at some farming & agriculture penny stocks that are likely to benefit from the ongoing global changes.
Agriculture Penny Stocks: AGRI
With a vision to become a leader in delivering plant-based foods & products, AGRI has long focused on developing an advanced & sustainable Agtech platform that combines the best technology, intellectual property & knowledge to solve an urgent problem.
For many reasons, the company has recently grabbed the attention of many investors. In light of its ongoing growth efforts, EF Hutton analyst Ben Piggott initiated a Buy rating and a price target of $5 – equivalent to almost 143% upside.
Speaking of achievements, August has been quite an eventful month for AGRI. Just over a week ago, the AgTech company announced that CEO Ingo Mueller & President Mauro Pennella will be presenting at the Q3 Investor Summit. This exclusive, independent conference is dedicated to connecting smallcap and microcap companies with qualified investors and will take place virtually, featuring 90+ companies and 500+ investors of which many are institutional investors.
Clearly, the company is making major strides in terms of its development. But, this isn’t the end of it. More recently, AGRI announced yet another major milestone that could help prompt its growth even further. On August 18th, the company announced that Peppercomm – an award-winning, strategic, and integrated communications & marketing agency – has been named the global PR agency of record for AGRI.
AGRI President & CMO is bullish on this partnership given that Peppercomm has “strong experience across agriculture, Agtech, and consumer brands, including public companies with multinational operations. He is confident that “their tight-knit and senior team, with existing industry and media relationships, can bring to life the vision and purpose of AGRI in the months ahead.”
By building a portfolio of proprietary AgTech solutions, AGRI could be well-positioned to disrupt the agriculture industry & help growers achieve higher quality and more sustainably produced crops.
As of now, the company is focused on several growth initiatives to prepare for further expansion. With an agreement to acquire Delphy Group BV & a binding LOI to acquire Deroose Plants NV, the company’s strategic and holistic approach aims to address key challenges facing the agriculture industry – making AGRI an AMAZING play amidst the ongoing macro conditions.
Currently trading at $1.69, AGRI recently jumped from its support of 1.61. The stock shows a solid resistance at 1.85 following its run-up on the 18th. Accumulation is picking up once again after a slight downfall recently. Similarly, both the MACD & the RSI are showing an uptick.
Given that the MACD is poised for a bullish crossover, accumulation is showing an uptick and the RSI is at 50, AGRI looks stable to trade & shows promising signs of another breakout. Now that it’s trading near its support, bullish investors could find now a good entry point on this potentially lucrative play – given its strong technical indicators & all the other macro factors in its favor. Get 100% FREE Alerts on AGRI & more promising AgTech plays HERE.
Agriculture Penny Stocks: AGFS
Through its range of science-based solutions, data-driven digital technologies, and high-touch customer services, AgroFresh (NASDAQ: AGFS) has become an AgTech innovator & global leader best known for its efforts to reduce food loss and waste as well as conserve the planet’s resources.
On August 9th, the company released its Q2 report detailing its financial success in the 1st half of 2022.
With net sales of $25.8 million, AGFS reported an impressive increase of 17.5% compared to the year-ago period. Meanwhile, looking at its diversification revenue, AGFS witnessed a whopping 12% growth for the trailing twelve-month period ended June 30th compared to the year-ago period.
However, the company reported a notable increase in its net loss from $17.3 million in Q2 2021 to $18.4 million this quarter. Despite that, the company reported an increase in its adjusted EBITDA from only $1 million Q2 2021 to a little over $2.4 million for Q2 2022.
At this growth rate, the company expects massive growth throughout the next 2 quarters – driven by continued growth in diversification revenue.
CEO Clint Lewis is bullish on the team’s performance so far. He highlights that the company’s diversification strategy “continues to drive results and is the reason why revenue increased 21% in the year-to-date period supported by double-digit growth in each of our diversification product solution categories.”
Lewis believes that “the advantages of diversification are clear. Beyond driving incremental revenue growth, diversification also serves as a risk mitigation hedge as it makes us less susceptible to adverse impacts in any one market, product, crop or customer. This is demonstrated in the company’s ability to generate strong growth in revenue and Adjusted EBITDA through the first half of 2022, despite a host of geopolitical, macroeconomic and environmental challenges.
With over 40 years of post-harvest experience across a broad range of crops, AGFS supports growers, packers, and retailers with solutions across the food supply chain to enhance the quality and extend the shelf life of fresh produce. Coupled with an asset-light business model and smart resource allocation to enable growth, AGFS has managed to build a platform that is durable, defensible, and more sustainable than ever.
As it continues investing in its technology and advancement, AGFS could quickly dominate the top gainers’ list & see new highs as more and more investors realize its untapped potential.
Currently trading at $1.79, AGFS has a near resistance at 1.85 and support near 1.71 and 1.61. Accumulation has been steady over the past weeks but is now showing a slight downfall – which is likely attributed to the increasing number of investors cashing out for profits following the recent run-up. Similarly, the MACD is bearish with no signs of an incoming crossover & the RSI is at 48 but continues to trend downwards.
In light of these indicators and the fact that the stock is trading near its support points, bullish investors could find now a good entry point on AGFS. Get FREE alerts on the BEST entry points for agriculture penny stocks that trade on the NASDAQ & NYSE!
BOTTOM LINE
Markets can go up or down, but no matter what happens, people still need to eat. That makes farmland intrinsically valuable and is the main reason why owning farmland is one of the most prudent financial investments to make now given its low volatility & potential lucrativeness. Wanna know the BEST farming penny stocks to invest in now? Sign up here for FREE!
Now that an increasing number of corporations and the rich are investing in farmland to deal with climate change and supply products to a hungry world with changing tastes, new technologies must be developed to give more sustenance to the land & keep it sustainable.
It’s now become clearer than ever that farmlands will only become more automated in the future. With this in mind, these 2 plays could prove lucrative as they continue to automate & develop their operations in line with this macroeconomic trend. This looks like it won’t end anytime soon. So, if you wanna get FREE alerts on the BEST Agriculture plays, sign up NOW!
As always, good luck to all (except the shorts)!
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Disclosure: We have been Previously compensated $42,500 by awareness consulting network for coverage on AGRI. Viral Stocks is not an investment advisor and this article does not provide investment advice. Always do your own research, make your own investment decisions, or consult with your nearest financial advisor. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is our opinion and is meant for informational and educational purposes only and does not provide investment advice. Past performance is not indicative of future
