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CF Industries (CF) Stock Sinks As Market Gains: What You Should Know

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CF Industries (CF - Free Report) closed the most recent trading day at $47.63, moving -0.19% from the previous trading session. This move lagged the S&P 500's daily gain of 0.42%.

Coming into today, shares of the fertilizer maker had lost 7.25% in the past month. In that same time, the Basic Materials sector gained 5%, while the S&P 500 gained 2.64%.

Wall Street will be looking for positivity from CF as it approaches its next earnings report date. This 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.

CF's full-year Zacks Consensus Estimates are calling for earnings of $4.10 per share and revenue of $5.53 billion. These results would represent year-over-year changes of +178.91% and +34.16%, respectively.

It is also important to note the recent changes to analyst estimates for CF. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 11.24% higher within the past month. CF is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that CF has a Forward P/E ratio of 11.65 right now. For comparison, its industry has an average Forward P/E of 14.28, which means CF is trading at a discount to the group.

Investors should also note that CF has a PEG ratio of 1.94 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Fertilizers was holding an average PEG ratio of 1.63 at yesterday's closing price.

The Fertilizers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% 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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