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Fertilizer stocks have been painful for investors to hold over the past year. They are down substantially from where they were a year ago, even as the overall market has had a nice rally. However, the big fertilizer stocks seem to have gone through a bottoming process over the last six months or so and could reward patient investors at these entry points. The sector has several secular trends that should bode well for these stocks over the long run.

The emergence and expansion of the middle class in the developing world, particularly Asia, means a greater need for grains, meats and high-quality foodstuffs as more people have the means to pay for a better diet. Domestically, natural gas prices are at decade lows thanks to the massive new shale resources being brought on line. These low prices should hold for at least the near and medium term. Natural gas is one of the primary components and operating costs to the fertilizer sector. Low prices have a positive impact on their margins. There is only so much arable land in the world. As the demand for food increases, better yields need to be coaxed out of this limited resource. This means increased demand for fertilizer, as well as other modern agricultural tools and products (e.g., modified seeds).

Given these long-term trends and the compelling valuations of the sectors, here are two stocks in the sector that look like they will be solid long-term bargains....341 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.