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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 $70, moving -1.67% from the previous trading session. This change lagged the S&P 500's daily gain of 0.3%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.34%.

Prior to today's trading, shares of the fertilizer maker had lost 16.64% over the past month. This has lagged the Basic Materials sector's loss of 3.26% and the S&P 500's loss of 1.21% in that time.

Investors will be hoping for strength from CF Industries as it approaches its next earnings release. In that report, analysts expect CF Industries to post earnings of $2.69 per share. This would mark a year-over-year decline of 36.1%. Meanwhile, our latest consensus estimate is calling for revenue of $1.91 billion, down 33.44% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.95 per share and revenue of $7.81 billion, which would represent changes of -42.75% and -30.17%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CF Industries. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 16.74% lower within the past month. CF Industries is currently a Zacks Rank #5 (Strong Sell).

Digging into valuation, CF Industries currently has a Forward P/E ratio of 7.16. This represents a premium compared to its industry's average Forward P/E of 7.1.

Also, we should mention that CF has a PEG ratio of 1.19. 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. The Fertilizers was holding an average PEG ratio of 0.88 at yesterday's closing price.

The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 223, which puts 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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