) touched a new 52-week high of $114.83 during the trading
session on Dec 20, before closing the day at $113.73, which
reflects a solid year-to-date return of 19.7%. The average volume
aggregated 1.9 million shares. This Zacks Rank #3 (Hold)
agricultural chemicals stock has the wherewithal for further
accretion. This is reflected by an expected long-term earnings
growth rate of 13.5%.
Monsanto is augmenting market presence both organically and
inorganically. Recently, the company collaborated with
Denmark-based biotech major Novozymes to discover, develop and
commercialize microbial solutions for farmers. This collaboration
will enable the farmers to boost crop productivity with less
Additionally, in November, Monsanto entered into an agreement
to acquire the assets of The Climate Corporation for $930.0
million in cash. Climate Corporation provides unique software and
insurance products to farmers, to protect and improve various
farming operations. The acquisition will enhance Monsanto's
Integrated Farming Systems platform and is likely to expand its
research and expenditure pipeline as well. The acquisition is
expected to consummate in the fiscal first quarter of 2014.
With such initiatives, we expect the company to fare well in
the subsequent quarters. Monsanto is likely to release its fiscal
first-quarter 2014 results on Jan 8. The Zacks Consensus Estimate
for the soon-to-be-reported quarter stands at 65 cents,
reflecting a year-over-year growth rate of 5.5%.
Other Stocks to Consider
Monsanto currently has a market capitalization of $59.8
billion. Some better-ranked stocks in the industry include
The Andersons, Inc.
American Vanguard Corp.
). While Andersons and American Vanguard have a Zacks Rank #1
(Strong Buy), Cosan holds a Zacks Rank #2 (Buy).
ANDERSONS INC (ANDE): Free Stock Analysis
AMER VANGUARD (AVD): Free Stock Analysis
COSAN LTD-A (CZZ): Free Stock Analysis Report
MONSANTO CO-NEW (MON): Free Stock Analysis
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