Why Agrium Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fertilizer producer Agrium has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Agrium and see what CAPS investors are saying about the stock right now.

Agriumfacts

Headquarters (founded)

Calgary, Canada (1931)

Market Cap

$16.0 billion

Industry

Fertilizers and agricultural chemicals

Trailing-12-Month Revenue

$16.7 billion

Management

CEO Michael Dyson (since 2003)

CFO Stephen Dyer (since 2011)

Return on Equity (average, past 3 years)

21.1%

Cash/Debt

$726.0 million/$4.0 billion

Dividend Yield

1.9%

Competitors

CF Industries

PotashCorp


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 1,771 members who have rated Agrium believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, GGGilmore, succinctly summed up the Agrium bull case case for our community:

After last year's drought I expect higher corn planting. ... The farmer's can't go wrong planting lots of corn. Also, any company that is making fertilizer with cheap natural gas in the U.S. can't help but make money unless they have really stupid or greedy management. I do not think this company has either.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its perfect five-star rating, Agrium may not be your top choice.

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The article Why Agrium Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of CF Industries Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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