In the latest trading session, Nutrien (NTR) closed at $53.29, marking a +0.08% move from the previous day. The stock’s change was less than the S&P 500’s daily gain of 0.57%. Elsewhere, the Dow saw an increase of 0.46%, while the technology-heavy Nasdaq appreciated by 0.75%.
Shares of the producer of potash and other fertilizers witnessed a gain of 1.22% over the previous month, behind the performance of the Basic Materials sector with its gain of 2.16% and the gain of the S&P 500 of 3.4%.
Market participants will be closely following Nutrien’s financial results in its next release. The company is forecast to post EPS of $0.78, indicating a 61.39% decline compared to the corresponding quarter last year. At the same time, our most recent consensus estimate projects revenue of $5.28 billion, reflecting a 29.94% drop from the corresponding quarter last year.
Investors might also note recent changes to analyst ratings for Nutrien. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive rating revisions a sign of optimism about the company’s business outlook.
Our research demonstrates that these adjustments in valuations are directly related to near-term stock price performance. Investors can take advantage of this by using the Zacks Rank. This model takes these rating changes into account and provides a simple, reasonable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable record of outperformance, independently reviewed, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.65% higher. Nutrien currently has a Zacks Rank of number 3 (Hold).
Digging into valuation, Nutrien currently has a Forward P/E ratio of 10.98. This represents a premium compared to its industry’s average Forward P/E of 10.7.
It should be further noted that NTR currently holds a PEG ratio of 1.37. The PEG ratio is similar to the commonly used P/E ratio, but this parameter also includes the company’s expected earnings growth. Fertilizer stocks, on average, hold a PEG ratio of 1.53 based on yesterday’s closing prices.
The Fertilizer industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 246, placing it in the bottom 3% of all 250+ industries.
The Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, at Zacks.com.
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Nutrien Ltd. (NTR): Free Analysis Report
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