The world is currently suffering from a major price shock as inflation continues to climb. Inflation is being felt in everything from natural gas to semiconductors to food prices. Agricultural stocks are in the spotlight as food prices continue to rise.

Since the beginning of this year, especially fertilizer stocks, their share prices have performed exceptionally well. $US Legg Mason (MOS.US)$ (the world’s largest phosphate fertilizer producer and the world’s second largest fertilizer producer), $CF Industrial Holdings (CF.US)$ (the world’s largest nitrogen fertilizer producer), $Nutrien ( NTR.US)$ (the world’s largest fertilizer producer), up about 99%, 56%, and 53% respectively.

Among the top 20 agricultural companies in the U.S. stock market by market value, agricultural construction machinery and agricultural inputs account for the vast majority, which is different from the top-ranked domestic listed agricultural companies in terms of market capitalization, which mainly focus on breeding and trade circulation. Differences in the valuation system of agribusiness by Chinese investors. The following is a brief introduction to the top three U.S. agricultural stocks.

Deere shares

Deere shares (DE.US) , the world’s largest maker of agricultural equipment, are up 28% this year. Rising agricultural prices have boosted demand for agricultural equipment. In addition, the demand for upgrading and replacing old equipment also provides support for the growth of Deere shares.

Total U.S. crop cash receipts in 2022 are likely to increase by 5.1% year over year due to higher commodity prices. U.S. customer sentiment has picked up over the past few quarters as U.S. exports to China have increased. Taking these factors into account, Deere expects fiscal 2022 net income to be between $6.7 billion and $7.1 billion, up from $5.96 billion in fiscal 2021.

Deere was founded in 1837 by John Deere and headquartered in Moline, Illinois, USA, and is a leading global manufacturer of construction machinery, agricultural machinery and lawn machinery and equipment.

In 2021, Deere shares will be ranked 88th among the top 500 companies in the United States, with operating income of $44.024 billion and total assets of $84.114 billion.

Caterpillar

Construction machinery manufacturing giant Caterpillar (CAT.US) has risen nearly 12% this year. Caterpillar first started in the manufacture of agricultural equipment, formerly known as Caterpillar Tractor Company, which was established by the merger of Holt Manufacturing Company and competitor Best Tractor Company in 1925. Headquartered in Deerfield, Illinois, it was not renamed until 1986. Caterpillar as it is known today.

Currently, the company is a leading global manufacturer of construction machinery, mining equipment, off-road diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives, focusing on three major market segments: construction, resources, and energy and transportation . In 2021, Caterpillar’s sales revenue will reach $51 billion, with total assets of $82.8 billion.

Caterpillar has a good history of paying dividends, paying dividends to shareholders every year since its inception. For the full year 2021, it paid $2.3 billion in dividends and repurchased $2.7 billion of Caterpillar common stock.

Nutrien

$Nutrien (NTR.US)$ , headquartered in Canada, is the world’s largest fertilizer producer, among which the output of potash fertilizer and nitrogen fertilizer is the world’s first and third, and it is also the second largest phosphate fertilizer producer in North America.

Russia and Belarus are the world’s second and third largest potash fertilizer producers. The suspension of export of potash fertilizers in the two countries puts pressure on the supply side. Nutrien happens to be the world’s largest potash fertilizer producer, and there is a lot of idle capacity waiting to be released. This means that Nutrien can not only increase the production of potash fertilizers, but also has greater room for price increases.

In 2021, Nutrien will achieve revenue of US$27.712 billion and total assets of US$49.954 billion. The company mentioned in its fourth-quarter 2021 conference call that the outlook for the global agricultural and crop input markets remains strong, and the company is on track for significant earnings and free cash flow growth this year. In addition, higher prices due to tight potash supplies are expected to boost sales and margins for the full year 2022.

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