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Nutrien (NTR) Outpaces Stock Market Gains: What You Should Know

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Nutrien (NTR - Free Report) closed at $70.59 in the latest trading session, marking a +0.73% move from the prior day. This change outpaced the S&P 500's 0.48% gain on the day.

Heading into today, shares of the producer of potash and other fertilizers had gained 7.96% over the past month, outpacing the Basic Materials sector's gain of 5.07% and the S&P 500's gain of 3.46% in that time.

NTR will be looking to display strength as it nears its next earnings release, which is expected to be November 1, 2021. On that day, NTR is projected to report earnings of $1.25 per share, which would represent year-over-year growth of 443.48%. Meanwhile, our latest consensus estimate is calling for revenue of $5.77 billion, up 37.15% from the prior-year quarter.

NTR's full-year Zacks Consensus Estimates are calling for earnings of $5.04 per share and revenue of $25.36 billion. These results would represent year-over-year changes of +180% and +21.6%, respectively.

Investors might also notice recent changes to analyst estimates for NTR. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 2.21% higher. NTR currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, NTR is holding a Forward P/E ratio of 13.91. Its industry sports an average Forward P/E of 13.91, so we one might conclude that NTR is trading at a no noticeable deviation comparatively.

Also, we should mention that NTR has a PEG ratio of 1.74. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Fertilizers stocks are, on average, holding a PEG ratio of 1.47 based on yesterday's closing prices.

The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 19, which puts 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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