Seeds of growth
Two of Monsanto's critical growth sectors were corn seeds and agricultural productivity, which includes pesticides and herbicides. Corn saw 46% growth over the prior year, and agricultural productivity sales were up by 34%. The segments are Monsanto's largest as a percentage of total sales, but cotton seeds also saw explosive sales growth, up 73% from last year. With corn futures not far off all-time highs, expect this segment to remain in high demand through the year (barring any commodity price collapse).
Pushing into Latin America is a way to offset weak off-season periods in the Northern Hemisphere, and should help the company maintain its technological lead through more consistent earnings. Monsanto is doing very well in research, boasting 14 advancements across a variety of developments, a stated record.
A rising tide
As one of the market's major agricultural bellwethers, Monsanto's outperformance should lift a handful of well-positioned fertilizer companies. Look for CF Industries
People won't stop eating anytime soon, and continued growth in both commodity and fertilizer prices ought to keep the industry in bloom throughout the year. Keep your eye on these companies -- add them to your Watchlist now for all the important news and analysis you need.
If you are looking for another stock poised for tremendous growth in 2012, check out a new free report from our analysts: "The Motley Fool's Top Stock for 2012." Thousands have already requested access and it'll only be available for a limited time. Simply click here -- it's free."
Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter for more news and insights. Motley Fool newsletter services have recommended creating a synthetic long position in Monsanto. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Flat Sales Can't Hold Back Monsanto's Profit Growth
Find out why the company's bottom line nearly doubled from year-ago levels.
3 Growth Stocks With Virtual Monopolies
Invest in companies with overwhelming dominance in their industries.
Monsanto Finishes Fiscal 2017 Strong Even as Merger Doubts Linger
The agricultural giant continues to work hard with its seed and genomics work.