Forget FMC: Instead Buy This Unstoppable Farming Titan That's Up 11% in 2025 and Still Running | The Motley Fool

It's an understatement to say that investors in FMC ( FMC +1.83%) have had a tough year. Year-to-date, shares in the fertilizer and agricultural chemicals company have fallen by nearly 73%. By comparison, the S&P 500 index is up almost 17%. FMC's significant declines are primarily due to weak results, coupled with the company's decision to reduce its quarterly dividend from $0.48 per share to $0.08 per share. Worse yet, it's not as if the dust has fully settled. Uncertainty over the company's future remains high, casting doubt on whether it's time to buy the dip . NYSE: FMC Key Data Points In contrast, there is another agricultural stock that not only has performed far better than FMC but may be on the path to deliver steady, solid gains in the years ahead as it capitalizes on advancements in artificial intelligence (AI) to produce a whole new revenue stream. The "other agricultural stock" I'm referring to is Deere & Co. ( DE +0.07%). Image source: Getty Images. How FMC could stay in a slump In some cases, buying on weakness can be a profitable strategy. In other cases, it can be akin to trying to catch a falling knife . This year, FMC has been a prime example of this. Investors who bought in at between $30 and $40 per share, after the stock's initial drop last winter, experienced heavy losses when the stock tumbled again in October following the news of the dividend cut. That event resulted in shares going from $30 down to as low as $12.17 per share. Currently, FMC is trading modestly above its lows, but don't assume it's all uphill from here. Recently, Barclays analyst Benjamin Theurer downgraded the stock, citing the prospect of further market-share losses and margin pressure. Theurer also noted that FMC's credit downgrade could complicate restructuring efforts. Yes, FMC's forward valuation reflects this high uncertainty. Currently, the stock trades at a forward price-to-earnings ( P/E ) multiple of just 6. That's well below the valuation of similar agricultural input stocks, such as CF Industries and The Mosaic Co . Both of these names are also currently trading at discount forward valuations. Moreover, until positive news emerges, it may be best to assume that subsequent developments will continue to weigh on the stock. For instance, if management or analysts further walk back expectations for 2026, this may result in a further pullback for FMC. A more promising alternative In contrast to FMC, Deere saw far steadier price performance. Shares are up 11% year to date. Although this stock experienced some volatility, pulling back in recent months due to challenges in the agricultural sector, it's shown resilience compared to what FMC experienced. NYSE: DE Key Data Points Better yet, while Deere's 2025 gains of 11% trailed those of the S&P 500 , a period of much stronger share-price performance could be on the horizon. For years, the company has been pivoting toward selling technology-enabled recurring services. By scaling up this business further, Deere...

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