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CF Industries (CF) Gains But Lags Market: What You Should Know

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CF Industries (CF - Free Report) closed the most recent trading day at $47.31, moving +0.19% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.02%.

Heading into today, shares of the fertilizer maker had lost 7.07% over the past month, lagging the Basic Materials sector's gain of 1.67% and the S&P 500's gain of 3.01% in that time.

CF will be looking to display strength as it nears its next earnings release, which is expected to be August 9, 2021. In that report, analysts expect CF to post earnings of $1.64 per share. This would mark year-over-year growth of 84.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.72 billion, up 42.75% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.10 per share and revenue of $5.53 billion. These totals would mark changes of +178.91% and +34.16%, respectively, from last year.

Any recent changes to analyst estimates for CF should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 11.24% higher. CF is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, CF currently has a Forward P/E ratio of 11.52. For comparison, its industry has an average Forward P/E of 15.51, which means CF is trading at a discount to the group.

We can also see that CF currently has a PEG ratio of 1.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Fertilizers industry currently had an average PEG ratio of 1.62 as of yesterday's close.

The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 23, which puts it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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, on Zacks.com.


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