Topic: How To Invest

Power Growth Investor Hotline – Friday, December 2, 2022

Article Excerpt

CORTEVA INC., $67.31, is a buy. The company (symbol CTVA on New York) is a leading developer of new seeds and crop chemicals, including herbicides and insecticides, for the agriculture industry. It separated from DowDuPont in June 2019. Corteva has now agreed to buy biologicals firm Stoller Group for $1.2 billion to accelerate its expansion into the growing market for nature-based crop protection products. Stoller is a privately held Houston-based company with operations and sales in more than 60 countries and $400 million in annual revenue. The purchase will add immediately to Corteva’s earnings. The Stoller acquisition comes as the agricultural industry is seeking alternatives to chemical pesticides and fertilizers, with farmers increasingly under pressure to adopt environmentally friendly practices. Biologicals use material that already exist in nature to replace synthetic ingredients in chemical pesticides. Pest and crop diseases are growing more resistant to synthetic chemicals. All in all, Corteva’s outlook remains positive, along with its industry fundamentals. Those bright prospects are supported by…