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Investors are hungry for this stock

Investors are hungry for this stock

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Investors are hungry for this stock

Investors are hungry for this stock
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Investors were hungry for Monsanto today.

Shares of the world’s largest seed company were higher today after reporting better-than-expected earnings, mainly due to strong demand in their corn and soybean business.

The company said it earned $1.67 billion, or $3.15 per share, in the second quarter, up 13% from the $1.48 billion earned a year ago.

(Read more: Monsanto profit beats expectations on strong corn, soybean demand)

The earnings underscore a trend in the market. Agriculture itself has been on a tear this year; shares of the Deutsche Bank Agricultural Index, which includes both soft ag and hard commodities, is up nearly 15%.

So, should you plant Monsanto in your portfolio?

“The fundamentals are fantastic,” says Wells Fargo Analyst Frank Mitsch. “We’ve seen a pickup in growth in their seeds and genomic part, the higher profitable part of company, both in the corn side, and more importantly, their soybeans side.”

Mitsch calls this the ‘decade of the soybeans’ and says Monsanto has three things working for it: the Intacta product in Latin America, royalties from Du Pont, and continued growth domestically. “There are so many parts of Monsanto that are moving forward,” said Mitsch.

(Read more: World's biggest soybean grower may not meet demand)

And in this case, the technicals back the fundamentals.

Jonathan Krinsky, Chief Market Technician at MKM Partners, sees a move up to the 2008 highs of $140 per share over the next one or two years.

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Monsanto's chart shows upside growth to $140.

He says, “since it bottomed in 2011, it’s been respecting this well-defined uptrend line as well as the 200-day moving average, which comes in at $107 right now. As long as it stays above those levels we’d be looking to be buyers.” [See chart]

Check out the video and find out more on how Monsanto can harvest you profits.

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