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Here's Why Nutrien (NTR) Stock is a Solid Choice Right Now
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Nutrien Ltd. (NTR - Free Report) stock looks promising at the moment. The company’s shares have popped roughly 27% so far this year. It is benefiting from higher prices and healthy demand for crop nutrients.
We are positive on the company’s prospects and believe that the time is right for you to add the stock to your portfolio as it looks promising and is poised to carry the momentum ahead.
Nutrien currently has a Zacks Rank #1 (Strong Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities for investors.
Let’s delve deeper into the factors that make this fertilizer maker an attractive choice for investors right now.
An Outperformer
Shares of Nutrien have rallied 52.2% in a year compared with the 49.3% rise of its industry. It has also outperformed the S&P 500’s 32.1% rise over the same period.
Image Source: Zacks Investment Research
Estimates Northbound
Earnings estimate revisions have the greatest impact on stock prices. Over the past two months, the Zacks Consensus Estimate for Nutrien for the current year has increased 28.5%. The consensus estimate for third-quarter 2021 has also been revised 39% upward over the same time frame.
Positive Earnings Surprise History
Nutrien has outpaced the Zacks Consensus Estimate in three of the trailing four quarters. In this time frame, it has delivered an average earnings surprise of roughly 127.6%.
Solid Growth Prospects
The Zacks Consensus Estimate for earnings for the current year for Nutrien is currently pegged at $4.78, indicating year-over-year growth of 165.6%. Moreover, earnings are expected to register 365.2% growth in the third quarter of 2021.
Growth Drivers in Place
Nutrien should benefit from solid demand and higher prices for fertilizers, especially potash, supported by the strength in global agriculture markets. It is expected to gain from strong potash sales volumes this year on the back of solid domestic and overseas demand.
The company is also well placed to gain from acquisitions, cost efficiency, and increased adoption of its digital platform. It also continues to expand its footprint in Brazil through acquisitions, including Tec Agro.
Nutrien is also gaining from higher net realized selling prices for crop nutrients as witnessed in the last reported quarter. Potash prices have strengthened on the back of robust global demand, aided by strong grower economics, higher crop prices and low global inventory levels. Tight availability along with firm demand is also driving up phosphate prices globally. Lower global supply availability stemming from reduced operating rates and a spike in energy prices are also likely to boost nitrogen prices. Higher prices are expected to drive the company’s sales and margins in 2021.
The company is also taking actions to boost potash production in the wake of tightening global potash market conditions. The move is in response to strong market fundamentals and is geared to enable its customers have the crop inputs they require to feed a growing population. The company expects to produce one million tons of incremental potash in 2021 as a result of this move.
Nutrien, on its second-quarter call, raised its adjusted net earnings per share and adjusted EBITDA guidance to $4.60-$5.10 (from $2.55-$3.25) and $6-$6.4 billion (from $4.4-$4.9 billion), respectively, for full-year 2021. The revision reflects higher expected results across its business and the benefits of increasing its potash sales guidance for 2021 by one million tons.
Image: Bigstock
Here's Why Nutrien (NTR) Stock is a Solid Choice Right Now
Nutrien Ltd. (NTR - Free Report) stock looks promising at the moment. The company’s shares have popped roughly 27% so far this year. It is benefiting from higher prices and healthy demand for crop nutrients.
We are positive on the company’s prospects and believe that the time is right for you to add the stock to your portfolio as it looks promising and is poised to carry the momentum ahead.
Nutrien currently has a Zacks Rank #1 (Strong Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities for investors.
Let’s delve deeper into the factors that make this fertilizer maker an attractive choice for investors right now.
An Outperformer
Shares of Nutrien have rallied 52.2% in a year compared with the 49.3% rise of its industry. It has also outperformed the S&P 500’s 32.1% rise over the same period.
Image Source: Zacks Investment Research
Estimates Northbound
Earnings estimate revisions have the greatest impact on stock prices. Over the past two months, the Zacks Consensus Estimate for Nutrien for the current year has increased 28.5%. The consensus estimate for third-quarter 2021 has also been revised 39% upward over the same time frame.
Positive Earnings Surprise History
Nutrien has outpaced the Zacks Consensus Estimate in three of the trailing four quarters. In this time frame, it has delivered an average earnings surprise of roughly 127.6%.
Solid Growth Prospects
The Zacks Consensus Estimate for earnings for the current year for Nutrien is currently pegged at $4.78, indicating year-over-year growth of 165.6%. Moreover, earnings are expected to register 365.2% growth in the third quarter of 2021.
Growth Drivers in Place
Nutrien should benefit from solid demand and higher prices for fertilizers, especially potash, supported by the strength in global agriculture markets. It is expected to gain from strong potash sales volumes this year on the back of solid domestic and overseas demand.
The company is also well placed to gain from acquisitions, cost efficiency, and increased adoption of its digital platform. It also continues to expand its footprint in Brazil through acquisitions, including Tec Agro.
Nutrien is also gaining from higher net realized selling prices for crop nutrients as witnessed in the last reported quarter. Potash prices have strengthened on the back of robust global demand, aided by strong grower economics, higher crop prices and low global inventory levels. Tight availability along with firm demand is also driving up phosphate prices globally. Lower global supply availability stemming from reduced operating rates and a spike in energy prices are also likely to boost nitrogen prices. Higher prices are expected to drive the company’s sales and margins in 2021.
The company is also taking actions to boost potash production in the wake of tightening global potash market conditions. The move is in response to strong market fundamentals and is geared to enable its customers have the crop inputs they require to feed a growing population. The company expects to produce one million tons of incremental potash in 2021 as a result of this move.
Nutrien, on its second-quarter call, raised its adjusted net earnings per share and adjusted EBITDA guidance to $4.60-$5.10 (from $2.55-$3.25) and $6-$6.4 billion (from $4.4-$4.9 billion), respectively, for full-year 2021. The revision reflects higher expected results across its business and the benefits of increasing its potash sales guidance for 2021 by one million tons.
Nutrien Ltd. Price and Consensus
Nutrien Ltd. price-consensus-chart | Nutrien Ltd. Quote
Other Stocks to Consider
Some other top-ranked stocks worth considering in the basic materials space include The Mosaic Company (MOS - Free Report) , United States Steel Corporation (X - Free Report) , and Olympic Steel, Inc. (ZEUS - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Mosaic has an expected earnings growth rate of 472.9% for the current year. The stock has also rallied around 77% over a year.
U.S. Steel has a projected earnings growth rate of 360.6% for the current year. The company’s shares have shot up around 215% in a year.
Olympic Steel has an expected earnings growth rate of 2,362.2% for the current year. The company’s shares have rallied around 108.9% in the past year.