FMC Company, an agricultural sciences firm, supplies crop safety options to farmers in North America, Latin America, Europe, the Center East, Africa, and Asia. The corporate develops and sells crop safety chemical substances resembling pesticides, herbicides, and fungicides.
Its organic and seed remedy merchandise are utilized in agriculture to boost crop yield and management a variety of bugs, weeds, and illness. FMC additionally participates in non-agricultural markets for pest management. The farming options supplier markets its merchandise by means of its personal gross sales group, in addition to by means of alliance companions and unbiased distributors.
Key challenges stay for FMC in 2026. Main credit standing businesses – together with S&P World, Fitch, and Moody’s – downgraded FMC to junk standing just lately, pushed by weak monetary metrics, debt pressures, and a difficult agricultural market. In response to the strain, the corporate lowered its dividend by $250 million yearly late final 12 months.
As we’ll see, FMC reported a big income miss within the newest quarter and is experiencing a sustained agricultural downcycle. Weaker costs, partly resulting from competitors for key portfolio merchandise, are anticipated to proceed to weigh on gross sales.
Tariff fees and better prices are additionally anticipated to affect the corporate’s margins. The shortage of development potential within the 12 months forward merely doesn’t warrant a bullish stance.
The Zacks Rundown
A Zacks Rank #5 (Sturdy Promote) inventory, FMC Corp. is a element of the Zacks Agriculture – Operations trade group, which at present ranks within the backside 23% out of roughly 250 Zacks Ranked Industries. As such, we count on this trade group as an entire to underperform the market over the subsequent 3 to six months.
Shares within the backside tiers of industries can typically be intriguing brief candidates. Whereas particular person shares have the flexibility to outperform even after they’re a part of a lagging trade, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey ahead is that rather more tough.
FMC inventory has extensively underperformed the market over the previous 12 months. A latest uptick off the lows of 2025 presents a compelling brief alternative.
Historical past of Earnings Misses & Deteriorating Outlook
FMC missed the earnings mark within the newest quarterly report, breaking a string of previous beats and signaling warning forward. Adjusted earnings of $1.20 per share sank 33% relative to the $1.79/share within the prior-year interval.
Through the fourth quarter, FMC posted revenues of $1.08 billion, falling about 6% shy of the $1.15 billion estimate. The highest-line determine plunged 11.5% versus the year-ago quarter. Falling wanting projections is a recipe for underperformance, and FMC is not any exception.
The agrochemicals firm has been on the receiving finish of unfavorable earnings estimate revisions as of late. Wanting into the present quarter, analysts minimize estimates by a whopping 246.67% previously 60 days. The Zacks Consensus EPS Estimate is now -$0.22 per share, translating to a -222.2% decline relative to the identical interval within the prior 12 months. Revenues are anticipated to drop -8.5% in the course of the quarter to $723.9 million.
Picture Supply: Zacks Funding Analysis
Falling earnings estimates are an enormous purple flag and have to be revered. Unfavorable development year-over-year is the kind of pattern that bears prefer to see.
Technical Outlook
As illustrated under, FMC FMC inventory is in a sustained downtrend. Discover how the inventory has been extensively underperforming the main indices. Additionally word that shares are buying and selling under a downward-sloping 200-day (purple line) shifting common – one other good signal for the bears.
Picture Supply: StockCharts
FMC inventory has skilled what is named a “loss of life cross,” whereby the inventory’s 50-day shifting common (blue line) crosses under its 200-day shifting common. Shares must make an outsized transfer to the upside and present growing earnings estimate revisions to warrant taking any lengthy positions. The inventory has fallen practically 60% previously 12 months alone.
Remaining Ideas
A deteriorating elementary and technical backdrop present that this inventory is just not set to make its solution to new highs anytime quickly. The truth that FMC inventory is included in one of many worst-performing trade teams provides one more headwind to a protracted listing of issues.
A shaky earnings historical past and falling future earnings estimates will probably function a ceiling to any potential rallies, nurturing the inventory’s downtrend. Current credit score and brokerage downgrades have the inventory preventing an uphill battle.
Potential traders might wish to give this inventory the chilly shoulder, or maybe embody it as a part of a brief or hedge technique. Bulls will wish to avoid FMC till the scenario exhibits main indicators of enchancment.
5 Shares Set to Double
Every was handpicked by a Zacks skilled as the favourite inventory to realize +100% or extra within the months forward. They embody
Inventory #1: A Disruptive Power with Notable Progress and Resilience
Inventory #2: Bullish Indicators Signaling to Purchase the Dip
Inventory #3: One of many Most Compelling Investments within the Market
Inventory #4: Chief In a Pink-Scorching Trade Poised for Progress
Inventory #5: Trendy Omni-Channel Platform Coiled to Spring
Many of the shares on this report are flying underneath Wall Road radar, which supplies an excellent alternative to get in on the bottom ground. Whereas not all picks may be winners, earlier suggestions have soared +171%, +209% and +232%.
See Our Latest 5 Shares Set to Double Picks >>
FMC Company (FMC) : Free Inventory Evaluation Report
This text initially revealed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
