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Indianapolis, Indiana-based Corteva, Inc. (CTVA) operates in the agriculture business and develops and supplies germplasm and traits in corn, soybean, and sunflower seed markets. Valued at a market cap of almost $41.1 billion, the company also supplies products that protect plants against weeds, insects, other pests, and diseases, as well as products that enhance crop health.

Companies worth $10 billion or more are generally described as “large-cap” stocks, and CTVA fits right into that category. The company has established itself as a leader in developing new seed and crop chemical products and serves roughly 10 million farmers and customers in 125 countries.

CTVA is currently trading 7.4% below its 52-week high of $64.20, reached on Nov. 25. Shares of this agricultural chemical company gained 7.3% over the past three months, lagging behind the broader Nasdaq Composite’s ($NASX) 15.6% gains during the same time frame.

Moreover, In the longer term, CTVA has gained 31.6% over the past 52 weeks, underperforming NASX’s 36.7% returns. On a YTD basis, shares of CTVA are up 24%, lagging behind NASX’s nearly 31.2% gains over the same time frame.

Nevertheless, CTVA has been trading above its 200-day moving average since mid-August and has remained above its 50-day moving average since mid-November, despite some fluctuations.

Shares of CTVA fell 5% after its weaker-than-expected Q3 earnings release on Nov. 6. The company’s revenue declined 10.2% annually to $2.33 billion and fell short of the Wall Street estimates of $2.69 billion. Competitive market dynamics, particularly in Latin America and ongoing challenges in Brazil’s crop protection market due to unfavorable season conditions, adversely impacted CTVA’s pricing and sales. Moreover, its adjusted loss of $0.49 per share widened by a whopping 113% and missed the forecasted figure by 58%. Despite this, the company expects a double-digit operating EBITDA growth in 2025, driven by controllable factors and increased R&D investment.

CTVA has outperformed its rival, FMC Corporation (FMC), which gained nearly 2.5% over the past 52 weeks and declined 9.2% on a YTD basis.

Despite CTVA’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 19 analysts covering it, and the mean price target of $66.12 suggests a modest 11.3% premium to its current levels.

On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart

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