Outperforming the Market by 28% in 2022, This High-Flying Stock Has Room to Run
In an environment of soaring food prices, it makes sense to start looking at stocks in the agricultural sector. As such, insecticide and herbicide manufacturer FMC Corporation (NYSE: FMC) is worth monitoring. While the company won't evade the supply chain issues bedeviling the rest of the economy, its earnings have enough positive momentum to justify buying the stock. Moreover, FMC's strong run in 2022 has legs, and here's why.
The company generates 60% of its sales from insecticides (substances used to control or kill insects that damage crops), with a further 27% from herbicides (substances used to control unwanted plants). The company's revenue is relatively diversified by geography and end-market crop. Latin America (32% of 2021 sales) is traditionally its largest region by sales, followed by Asia (25%), North America (22%), and Europe, Middle East, and Africa, or EMEA (21%). CEO Mark Douglas expects crop protection markets in Latin America, North America, and Asia to be "up mid-single digits" in 2022. However, he forecasted EMEA to be "down low single digits. The war in Ukraine may further reduce market growth in the EMEA region." More on that in a moment.
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Source Fool.com
