4-Star Stocks Poised to Pop: Monsanto

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Monsanto (NYSE: MON), the world's biggest seed company, has earned a respected four-star ranking.

With that in mind, let's take a closer look at Monsanto's business and see what CAPS investors are saying about the stock right now.

Monsanto facts

Headquarters (Founded)

St. Louis, Mo. (2000)

Market Cap

$41.8 billion

Industry

Chemicals

Trailing-12-Month Revenue

$11.72 billion

Management

Chairman/CEO Hugh Grant
CFO Carl Casale

Return on Equity (Average, Past 3 Years)

19.5%

Cash/Debt

$1.96 billion/$1.8 billion

Dividend Yield

1.4%

Competitors

Dow Chemical (NYSE: DOW)
DuPont (NYSE: DD)
Syngenta (NYSE: SYT)

CAPS Members Bullish on MON Also Bullish on

PotashCorp (NYSE: POT)
Vale (NYSE: VALE)

CAPS Members Bearish on MON Also Bearish on

Research In Motion (Nasdaq: RIMM)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95.9% of the 2,785 members who have rated Monsanto believe the stock will outperform the S&P 500 going forward. These bulls include DarthMaul09 and tortillatree.

Late last week, DarthMaul09 sowed a much-needed seed of hope for Monsanto supporters: "Recent short-term bad news has hurt this stock, but long-term this company will be needed to maintain adequate world food production ... the recent stock retreat is a potential buying opportunity."

In a pitch from last month, tortillatree helps fertilize that sentiment:

[T]his is still a strong company, the leader in its class, gobs of cash, and it's the ideal business to be in when the economy really tanks. so all in all, the only thing that scares me from recommending it long-term is the p/e ratio of 20. it's too big and too established of a company to command that kind of a p/e ratio. regardless, it will go up in the next couple months from its current levels for above mentioned reasons.

What do you think about Monsanto, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Syngenta is a Motley Fool Global Gains pick. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 14, 2009, at 10:49 AM, BossAtomic wrote:

    Today, we got another off-cycle report from Monsanto which is the world's largest seed producer. While the company beat earnings, the lackluster guidance leads to conclude again that it's still to early too go shopping in the agriculture sector.

    I used to have Monsanto rated as a buy but I downgraded the shares to a Sell earlier this year. For the August quarter, Monsanto earned two cents a share which beat Wall Street's forecast of just a penny a share. The company however reported a net loss due to restructuring costs. Monsanto also pegged this year's fiscal earnings at a range between $3.10 and $3.30 a share. That's less than Wall Street's consensus which is not a good sign.

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