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Nutrien (NTR) Dips More Than Broader Markets: What You Should Know

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Nutrien (NTR - Free Report) closed the most recent trading day at $79.59, moving -1.95% from the previous trading session. This move lagged the S&P 500's daily loss of 1.53%. Elsewhere, the Dow lost 1.72%, while the tech-heavy Nasdaq lost 3.27%.

Heading into today, shares of the producer of potash and other fertilizers had lost 1.9% over the past month, lagging the Basic Materials sector's loss of 0.06% and the S&P 500's loss of 1.28% in that time.

Wall Street will be looking for positivity from Nutrien as it approaches its next earnings report date. In that report, analysts expect Nutrien to post earnings of $1.86 per share. This would mark a year-over-year decline of 31.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.92 billion, down 9.58% from the year-ago period.

NTR's full-year Zacks Consensus Estimates are calling for earnings of $10.25 per share and revenue of $32.45 billion. These results would represent year-over-year changes of -22.29% and -14.34%, respectively.

Any recent changes to analyst estimates for Nutrien should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 18.72% lower. Nutrien is holding a Zacks Rank of #5 (Strong Sell) right now.

Valuation is also important, so investors should note that Nutrien has a Forward P/E ratio of 7.92 right now. Its industry sports an average Forward P/E of 7.53, so we one might conclude that Nutrien is trading at a premium comparatively.

It is also worth noting that NTR currently has a PEG ratio of 0.99. 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 1.03 at yesterday's closing price.

The Fertilizers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 224, putting it in the bottom 12% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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