Monsanto Reaches New 52-Week High - Analyst Blog
May 06 2013 - 10:15AM
Zacks
Shares of Monsanto
Company (MON) hit a new 52-week high of $107.73 on May 3
and eventually closed at $107.28. The shares of this agricultural
chemicals company have been gaining momentum since it reported
solid fiscal second quarter results on Apr 3.
Year-to-date, share price has
recorded a healthy return of 14.2%. The company’s long-term
estimated EPS growth rate is 12.7%. Average volume of shares traded
over the last three months came in at approximately 2,382K.
Solid Second Quarter
Performance
Monsanto posted strong fiscal
second quarter results led by an increase in revenue as well as
earnings. Earnings per share came in at $2.73, beating the Zacks
Consensus Estimate of $2.53 per share. Earnings also grew 19.7%
year over year, driven by solid top line growth.
Revenue was reported to be $5.5
billion, up 15.2% year over year, beating the Zacks Consensus
Estimate of $5.3 billion. The main reason for increased revenue was
the improvement in the company’s global corn business.
The corn business is expected to
flourish in the coming quarters as well, especially in Brazil and
Argentina. Moreover, management is quite optimistic about the U.S.
seed business on the back of its second quarter performance and
expects fiscal 2013 to be one of the highest revenue earning years
for the company.
Also, Monsanto’s R&D lineup in
molecular-bred hybrid technologies as well as technical
collaboration with agri-business research firms continue to support
sustainability and modernization in cropping pattern for long-term
growth.
The estimates have been mostly
revised upwards for fiscal 2013 and 2014, subsequent to the
earnings release. Over the last thirty days, the Zacks Consensus
Estimate has risen 0.65% to $4.58 for fiscal 2013, while rising
1.73% to $5.28 for fiscal 2014.
Other Stocks to
Consider
Monsanto currently carries a Zacks
Rank #2 (Buy). Other stocks worth a look in the industry are
Celanese Corporation (CE), FMC
Corp. (FMC) and Methanex Corporation
(MEOH); each carrying a Zacks Rank #2 (Buy).
CELANESE CP-A (CE): Free Stock Analysis Report
FMC CORP (FMC): Free Stock Analysis Report
METHANEX CORP (MEOH): Free Stock Analysis Report
MONSANTO CO-NEW (MON): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Methanex (NASDAQ:MEOH)
Historical Stock Chart
From Jul 2024 to Aug 2024
Methanex (NASDAQ:MEOH)
Historical Stock Chart
From Aug 2023 to Aug 2024