Indianapolis, Indiana-based Corteva, Inc. (CTVA) provides seed and crop protection solutions for the agriculture industry and food supply. Valued at $44.3 billion by market cap, the leading agricultural company offers seeds, crop protection products, along with software solutions and digital services.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and CTVA perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the agricultural inputs industry. Corteva’s strengths include its robust new product pipeline, its focus on addressing global agrarian needs, and its science-based innovations, making it a leader in agricultural solutions. Its global footprint spans 125 countries, allowing regional customization and risk mitigation. A flexible production strategy ensures cost efficiency and adaptability to demand changes.
Despite its notable strength, CTVA slipped 15.6% from its 52-week high of $77.41, achieved on Jul. 3. Over the past three months, CTVA stock declined 9.8%, underperforming the S&P 500 Index’s ($SPX) 6.2% gains during the same time frame.
In the longer term, shares of CTVA fell 8.3% over the past six months but climbed 5.3% over the past 52 weeks, underperforming SPX’s six-month gains of 14.7% and 13.2% returns over the last year.
To confirm the bearish trend, CTVA has been trading below its 200-day moving average since early October, with slight fluctuations. However, the stock has been trading above its 50-day moving average since mid-November, with minor fluctuations.
On Nov. 4, CTVA shares closed up marginally after reporting its Q3 results. The company’s adjusted loss of $0.23 per share beat Wall Street expectations of $0.49 per share. The company’s revenue was $2.6 billion, topping Wall Street's $2.5 billion forecast. CTVA expects full-year adjusted EPS in the range of $3.25 to $3.35, and expects revenue in the range of $17.7 billion to $17.9 billion.
CTVA’s rival, FMC Corporation (FMC) shares significantly lagged behind the stock, with a 66.2% downtick on a six-month basis and 77.2% losses over the past 52 weeks.
Wall Street analysts are reasonably bullish on CTVA’s prospects. The stock has a consensus “Moderate Buy” rating from the 22 analysts covering it, and the mean price target of $78.05 suggests a potential upside of 19.5% from current price levels.
