Fertilizer firm FMC noticed share costs plummet all through 2025, however there’s one other agricultural inventory that has delivered constructive positive aspects.
Farm equipment maker Deere is up by round 11% year-to-date regardless of unfavorable macroeconomic circumstances within the agricultural area.
Whereas FMC’s future is very unsure, Deere might have a path to greater costs based mostly on its pivot in the direction of promoting AI-enabled companies to its clients.
10 shares we like higher than Deere & Firm ›
It is an understatement to say that traders in FMC(NYSE: FMC) have had a tricky yr. 12 months-to-date, shares within the fertilizer and agricultural chemical substances firm have fallen by practically 73%. By comparability, the S&P 500 index is up virtually 17%.
FMC’s vital declines are primarily as a result of weak outcomes, coupled with the corporate’s choice to cut back its quarterly dividend from $0.48 per share to $0.08 per share. Worse but, it is not as if the mud has absolutely settled. Uncertainty over the corporate’s future stays excessive, casting doubt on whether or not it is time to purchase the dip.
In distinction, there may be one other agricultural inventory that not solely has carried out much better than FMC however could also be on the trail to ship regular, strong positive aspects within the years forward because it capitalizes on developments in synthetic intelligence (AI) to provide a complete new income stream. The “different agricultural inventory” I am referring to is Deere & Co.(NYSE: DE).
Picture supply: Getty Pictures.
In some instances, shopping for on weak point could be a worthwhile technique. In different instances, it may be akin to attempting to catch a falling knife. This yr, FMC has been a chief instance of this. Buyers who purchased in at between $30 and $40 per share, after the inventory’s preliminary drop final winter, skilled heavy losses when the inventory tumbled once more in October following the information of the dividend minimize.
That occasion resulted in shares going from $30 right down to as little as $12.17 per share. Presently, FMC is buying and selling modestly above its lows, however do not assume it is all uphill from right here. Just lately, Barclays analyst Benjamin Theurer downgraded the inventory, citing the prospect of additional market-share losses and margin strain. Theurer additionally famous that FMC’s credit score downgrade may complicate restructuring efforts.
Sure, FMC’s ahead valuation displays this excessive uncertainty. Presently, the inventory trades at a ahead price-to-earnings (P/E) a number of of simply 6. That is nicely under the valuation of comparable agricultural enter shares, akin to CF Industries and The Mosaic Co. Each of those names are additionally at the moment buying and selling at low cost ahead valuations.
Furthermore, till constructive information emerges, it might be finest to imagine that subsequent developments will proceed to weigh on the inventory. As an illustration, if administration or analysts additional stroll again expectations for 2026, this may increasingly lead to an additional pullback for FMC.
In distinction to FMC, Deere noticed far steadier value efficiency. Shares are up 11% yr so far. Though this inventory skilled some volatility, pulling again in latest months as a result of challenges within the agricultural sector, it is proven resilience in comparison with what FMC skilled.
Higher but, whereas Deere’s 2025 positive aspects of 11% trailed these of the S&P 500, a interval of a lot stronger share-price efficiency may very well be on the horizon. For years, the corporate has been pivoting towards promoting technology-enabled recurring companies.
By scaling up this enterprise additional, Deere goals to ascertain a strong, recurring income stream for the corporate. Coupled with improved macroeconomic circumstances within the agricultural sector, this might pave the way in which for Deere to satisfy its progress and margin objectives for 2026 to 2030.
Administration is focusing on 10% annualized gross sales progress and 20% working margins. Just lately, working margins averaged round 17%. Wall Road is skeptical of those plans, however this may increasingly work to an investor’s benefit.
Deere inventory could seem costly proper now at 28 occasions ahead earnings. Opponents like CNH Industrial and Toro commerce at far decrease ahead P/E ratios. Nonetheless, if Deere’s tech pivot pans out, this inventory might not solely be capable of maintain its valuation but in addition add to it.
Considering Deere’s progress technique, analyst estimates name for the corporate’s earnings per share (EPS) to develop 49% between the fiscal years ending October 2026 and October 2028 or by over 14% on an annualized foundation.
Efficient earnings progress may are available in even stronger, relying on how rapidly the aforementioned macroeconomic challenges in agriculture subside. Additionally, take into account Deere’s dividend. It might solely have a ahead dividend yield of 1.38%, however it has been rising steadily in recent times.
Add all of it collectively, and there is a lot to recommend strong complete returns forward for this inventory. Therefore, when you’re bullish on the sector, take a go on FMC and make Deere your best choice.
Before you purchase inventory in Deere & Firm, take into account this:
The Motley Idiot Inventory Advisor analyst crew simply recognized what they imagine are the 10 finest shares for traders to purchase now… and Deere & Firm wasn’t one in every of them. The ten shares that made the minimize may produce monster returns within the coming years.
Think about when Netflix made this listing on December 17, 2004… when you invested $1,000 on the time of our advice, you’d have $504,239!* Or when Nvidia made this listing on April 15, 2005… when you invested $1,000 on the time of our advice, you’d have $1,159,896!*
Now, it’s value noting Inventory Advisor’s complete common return is 985% — a market-crushing outperformance in comparison with 195% for the S&P 500. Do not miss the newest high 10 listing, accessible with Inventory Advisor, and be a part of an investing group constructed by particular person traders for particular person traders.
See the ten shares »
*Inventory Advisor returns as of December 22, 2025
Thomas Niel has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Deere & Firm. The Motley Idiot recommends Barclays Plc and Toro. The Motley Idiot has a disclosure coverage.
Overlook FMC: As a substitute Purchase This Unstoppable Farming Titan That is Up 11% in 2025 and Nonetheless Operating was initially printed by The Motley Idiot
