Bear of the Day: FMC Corp. (FMC)

FMC Corporation, an agricultural sciences company, provides crop protection solutions to farmers in North America, Latin America, Europe, the Middle East, Africa, and Asia. The company develops and sells crop protection chemicals such as insecticides, herbicides, and fungicides.

Its biological and seed treatment products are used in agriculture to enhance crop yield and control a range of insects, weeds, and disease. FMC also participates in non-agricultural markets for pest control. The farming solutions provider markets its products through its own sales organization, as well as through alliance partners and independent distributors.

Key challenges remain for FMC in 2026. Major credit rating agencies – including S&P Global, Fitch, and Moody’s – downgraded FMC to junk status recently, driven by weak financial metrics, debt pressures, and a challenging agricultural market. In response to the pressure, the company reduced its dividend by $250 million annually late last year.

As we’ll see, FMC reported a significant revenue miss in the latest quarter and is experiencing a sustained agricultural downcycle. Weaker prices, partly due to competition for key portfolio products, are expected to continue to weigh on sales.

Tariff charges and higher costs are also expected to impact the company’s margins. The lack of growth potential in the year ahead simply doesn’t warrant a bullish stance.

The Zacks Rundown

A Zacks Rank #5 (Strong Sell) stock, FMC Corp. is a component of the Zacks Agriculture – Operations industry group, which currently ranks in the bottom 23% out of approximately 250 Zacks Ranked Industries. As such, we expect this industry group as a whole to underperform the market over the next 3 to 6 months.

Stocks in the bottom tiers of industries can often be intriguing short candidates. While individual stocks have the ability to outperform even when they’re part of a lagging industry, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much more difficult.

FMC stock has widely underperformed the market over the past year. A recent uptick off the lows of 2025 presents a compelling short opportunity.

History of Earnings Misses & Deteriorating Outlook

FMC missed the earnings mark in the latest quarterly report, breaking a string of past beats and signaling caution ahead. Adjusted earnings of $1.20 per share sank 33% relative to the $1.79/share in the prior-year period.

During the fourth quarter, FMC posted revenues of $1.08 billion, falling about 6% shy of the $1.15 billion estimate. The top-line figure plunged 11.5% versus the year-ago quarter. Falling short of projections is a recipe for underperformance, and FMC is no exception.

The agrochemicals company has been on the receiving end of negative earnings estimate revisions as of late. Looking into the current quarter, analysts cut estimates by a whopping 246.67% in the past 60 days. The Zacks Consensus EPS Estimate is now -$0.22 per share, translating to a -222.2% decline relative to the same period in the prior year. Revenues are anticipated to drop -8.5% during the quarter to $723.9 million.

Falling earnings estimates are a huge red flag and need to be respected. Negative growth year-over-year is the type of trend that bears like to see.

Technical Outlook

As illustrated below, FMC FMC stock is in a sustained downtrend. Notice how the stock has been widely underperforming the major indices. Also note that shares are trading below a downward-sloping 200-day (red line) moving average – another good sign for the bears.

FMC stock has experienced what is known as a “death cross,” whereby the stock’s 50-day moving average (blue line) crosses below its 200-day moving average. Shares would have to make an outsized move to the upside and show increasing earnings estimate revisions to warrant taking any long positions. The stock has fallen nearly 60% in the past year alone.

Final Thoughts

A deteriorating fundamental and technical backdrop show that this stock is not set to make its way to new highs anytime soon. The fact that FMC stock is included in one of the worst-performing industry groups adds yet another headwind to a long list of concerns.

A shaky earnings history and falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock’s downtrend. Recent credit and brokerage downgrades have the stock fighting an uphill battle.

Potential investors may want to give this stock the cold shoulder, or perhaps include it as part of a short or hedge strategy. Bulls will want to steer clear of FMC until the situation shows major signs of improvement.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research