This Growth Stock Is Recession-Resistant
There aren't many non-energy companies that raised full-year earnings guidance in their recent earnings reports, but agriscience company Corteva (NYSE: CTVA) did. The company's earnings confirmed Corteva's progress on its strategic objectives, and investors can look forward to multiyear margin and profit expansion from the company. Here's why Corteva remains an attractive stock for long-term investors.
There are three key reasons to buy Corteva:
The first point is relatively easy to understand. Ultimately, spending on agriculture follows the underlying price of the commodities. If they rise, farmers tend to make more money and are more willing to spend on equipment or, in Corteva's case, lay crops and invest in seeds and crop-protection products. Indeed, stocks in the agriculture sector were also sold off in the recent decline this year as investors piled out of commodity stocks after interest rates started rising and economic indicators worsened. However, it's also true that the underlying crop commodities (corn, wheat, soybean, rice, etc.) are still at levels not seen since 2014 -- a period of historically high crop commodity prices.
Source Fool.com
