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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 at $70.59 in the latest trading session, marking a -0.27% move from the prior day. This move lagged the S&P 500's daily gain of 0.64%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.46%.

Heading into today, shares of the fertilizer maker had gained 19.54% over the past month, outpacing the Basic Materials sector's gain of 6.43% and the S&P 500's gain of 4.56% in that time.

CF Industries will be looking to display strength as it nears its next earnings release. On that day, CF Industries is projected to report earnings of $0.97 per share, which would represent year-over-year growth of 142.5%. Meanwhile, our latest consensus estimate is calling for revenue of $2.38 billion, up 115.58% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for CF Industries. These revisions help to show the ever-changing nature of near-term business trends. 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. 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 10.39% higher. CF Industries currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, CF Industries is currently trading at a Forward P/E ratio of 19.8. Its industry sports an average Forward P/E of 18.93, so we one might conclude that CF Industries is trading at a premium comparatively.

It is also worth noting that CF currently has a PEG ratio of 3.3. 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 industry currently had an average PEG ratio of 1.34 as of yesterday's close.

The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 11, which puts it in the top 5% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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

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