Agriculture stocks have taken a beating lately. But Pete Najarian thinks they can still help your portfolio grow big profits.
In fact, he’s keeping a close eye on three stocks in the space.
Archer Daniels Midland
First, Najarian recommends Archer Daniels . “CEO Patricia Woertz has done a great job in turning the company around. It’s trading at a 6 or 7 P/E and fundamentally at this level it’s probably a great opportunity. There should be a lot of upside.” However, he also says don’t chase it. That usually means wait for a pullback then take a look.
Najarian also likes Monsanto which he says, “has a phenomenal pipeline for ag biotech. They just acquired another company in Brazil. They’re using their money at the right time to build themselves.”
His third ag pick is Mosaic because “it’s really been beaten up. It’s trading at about a 5 P/E yet they're the number one producers of fertilizer.”
What’s the bottom line? According to Najarian, “the sky should be the limit for these stocks. They’re all oversold.”