The agriculture stocks that could benefit from Monsanto results (MON, POT, IPI, AGU, MOS)

Posted in General 
June 24th, 2009

Monsanto Co. (NYSE: MON) shares are up about 2% after the company beat earnings expectations by 8 cents a share, reaffirmed guidance for fiscal 2009, and said it remains committed to doubling its gross profit over the next three years.

The company’s revenue was weak, but that was somewhat expected, due to its revised guidance in late May.

The report didn’t have anything negative to say about underlying demand of agricultural products, which is helping to boost shares of other agricultural stocks such as Potash Corp (NYSE: POT), Intrepid Potash, Inc. (NYSE: IPI), Agrium Inc. (NYSE: AGU) and Mosaic Co. (NYSE: MOS) slightly in the early going, on light to moderate premarket volumes.

The agriculture group hasn’t enjoyed positive analyst sentiment in recent months. If Monsanto happens to inspire a rally in those names, names to watch will be Intrepid Potash and Mosaic, two with a rather harsh string of negative analyst revisions. — Mike Tarsala

 

 

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