CF Industries (CF - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
Analysts' growing optimism on the earnings prospects of this fertilizer maker is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For CF, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $4.19 per share, which is a change of +498.57% from the year-ago reported number.
The Zacks Consensus Estimate for CF has increased 7.86% over the last 30 days, as four estimates have gone higher while one has gone lower.
Current-Year Estimate Revisions
For the full year, the earnings estimate of $15.81 per share represents a change of +272.88% from the year-ago number.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for CF. Over the past month, five estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 24.43%.
Favorable Zacks Rank
The promising estimate revisions have helped CF earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for CF have attracted decent investments and pushed the stock 21.2% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
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CF Industries (CF - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
Analysts' growing optimism on the earnings prospects of this fertilizer maker is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For CF, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $4.19 per share, which is a change of +498.57% from the year-ago reported number.
The Zacks Consensus Estimate for CF has increased 7.86% over the last 30 days, as four estimates have gone higher while one has gone lower.
Current-Year Estimate Revisions
For the full year, the earnings estimate of $15.81 per share represents a change of +272.88% from the year-ago number.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for CF. Over the past month, five estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 24.43%.
Favorable Zacks Rank
The promising estimate revisions have helped CF earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for CF have attracted decent investments and pushed the stock 21.2% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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