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CF Industries (CF) Stock Sinks As Market Gains: What You Should Know
CF Industries (CF - Free Report) closed the most recent trading day at $69.30, moving -1% from the previous trading session. This change lagged the S&P 500's 0.56% gain on the day. At the same time, the Dow added 0.41%, and the tech-heavy Nasdaq gained 1.35%.
Coming into today, shares of the fertilizer maker had lost 18.87% in the past month. In that same time, the Basic Materials sector lost 3.21%, while the S&P 500 lost 1.48%.
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%. Our most recent consensus estimate is calling for quarterly revenue of $1.91 billion, down 33.44% from the year-ago period.
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.
Any recent changes to analyst estimates for CF Industries should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 16.74% lower within the past month. CF Industries is holding a Zacks Rank of #5 (Strong Sell) right now.
Digging into valuation, CF Industries currently has a Forward P/E ratio of 7.04. This represents a discount compared to its industry's average Forward P/E of 7.13.
Investors should also note that CF has a PEG ratio of 1.17 right now. 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 0.96 at yesterday's closing price.
The Fertilizers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 216, putting it in the bottom 15% 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 Zacks.com.