NEW YORK (TheStreet) -- Monsanto (MON) has been sapping the strength of the Market Vectors Agribusiness ETF (MOO) this year and did so again Monday, when it lost 0.6% on a day when MOO gained 0.4% and the S&P 500 advanced 0.8%.
Year to date, Monsanto has lost 13.6%. Because Monsanto still makes up a hefty 7.75% of assets in the MOO, the company's shares have dragged down the ETF, which has gained half as much as the S&P 500 this year (4% vs. 8%).
Monsanto plans to report earnings Wednesday, and the news should set the ETF's tone for the rest of the week.
In the previous two quarters, Monsanto earned 2 cents a share and then lost 2 cents share. Earnings estimates for the most recently completed quarter have come down almost 13% in the past three months, to $1.73 per share.Analysts are more positive about the current quarter that ends in May and have raised estimates by about 15% over the past three months. Positive guidance will probably be needed to break this stock out of its funk, however, but some traders expect it, with options buyers being heavily bullish of late.
|Who Owns Monsanto?|
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV