2 interesting stocks from an extremely important sector that nobody cares about and everybody ignores

A sector without which the planet and humanity would not be where it is? It's fertilizers. Something so essential, yet so completely overlooked. Sound like the perfect investment opportunity?

It's only because of fertilizers that the human population has reached such numbers. Without them, it would be impossible to feed such a mass of people. And that's something that strikes the smart investor as the perfect defensive option - there will always be a need. And I bring you a pick on two stocks from this very sector!

Mosaic $MOS-0.7%

Mosaic is benefiting from strong demand for phosphate and potash, its cost measures, and higher prices as the market experiences the adverse effects of input cost inflation.

Mosaic is benefiting from strong demand and prices for phosphate and potash. Higher agricultural commodity prices and attractive farm economics are supporting fertilizer demand worldwide. Farm economics in most of the world's growing regions remain attractive due to strong crop demand, affordable inputs and favorable weather.

Demand for grains and oilseeds remains strong along with strong farm economies. Strong agricultural commodity prices and improved affordability for farmers are likely to support fertilizer demand in 2023. Higher prices are also likely to support sales within the Company's phosphate and potash units.

For the fourth quarter, the company said it expects strong agricultural commodity price trends to drive a recovery in fertilizer market demand in 2023. Mosaic also noted that demand for grains and oilseeds is strong. Higher biofuel consumption, crop production and food security concerns are expected to continue to fuel elevated crop prices through this year and potentially beyond, leading to higher global fertilizer demand later in the year.

However, the Company is likely to continue to face headwinds from high prices for key raw materials. Sulphur and ammonia prices remain elevated, exacerbated by uncertainty over wartime supplies from Russia. Plant shutdowns and maintenance have also led to limited raw material supplies. The company is therefore expected to face pressure on margins associated with higher input costs. Some of the impact of input cost inflation is expected to continue in the first quarter of 2023. Higher costs are likely to continue to impact margins in the Mosaic Fertilizantes segment in the first quarter.

Nutrien $NTR-0.5%

Nutrien operates in Saskatoon, Saskatchewan and is a Canadian fertilizer company. Nutrien is the largest producer of potash and the third largest producer of nitrogen fertilizers in the world. According to its corporate profile, the company has more than 2,000 business locations in North America, South America and Australia with more than 23,500 employees. NTR lost 4% of its market value in 2022.

Financially, Nutrien enjoys a similar profile to Mosaic. Like its sector rival, Nutrien rules as an objectively undervalued business. The market currently values NTR at 5.5 times. By contrast, the industry median is 13.4 times. The company's price-to-earnings growth (PEG) ratio is 0.2 times, which is lower than the industry median of 0.84 times.

But here's a bit of a caution - Nutrien doesn't have the most stable balance sheet. However, it compensates for this shortcoming with solid growth. For example, the three-year sales growth rate is 13.7%, which is above the sector median of 7.65%. Finally, analysts covering the company call NTR a consensus moderate buy with a target price of $101.13 (up 38.5%). This puts the company among the best fertilizer stocks to buy. At least in their view.

Disclaimer: This is in no way an investment recommendation. This is purely my summary and analysis based on data from the internet and other sources. Investing in the financial markets is risky and everyone should invest based on their own decisions. I am just an amateur sharing my opinions.