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CF Industries (CF) Outpaces Stock Market Gains: What You Should Know
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CF Industries (CF - Free Report) closed the most recent trading day at $69.45, moving +1.97% from the previous trading session. This change outpaced the S&P 500's 0.69% gain on the day. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq lost 8.94%.
Prior to today's trading, shares of the fertilizer maker had gained 1.22% over the past month. This has outpaced the Basic Materials sector's gain of 0.82% and lagged the S&P 500's gain of 5.41% in that time.
CF Industries will be looking to display strength as it nears its next earnings release. In that report, analysts expect CF Industries to post earnings of $2.19 per share. This would mark a year-over-year decline of 64.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.88 billion, down 44.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.97 per share and revenue of $6.86 billion, which would represent changes of -54.14% and -38.65%, respectively, from the prior year.
Any recent changes to analyst estimates for CF Industries should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 6.49% lower. CF Industries is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, CF Industries is currently trading at a Forward P/E ratio of 8.55. This valuation marks a premium compared to its industry's average Forward P/E of 8.22.
It is also worth noting that CF currently has a PEG ratio of 1.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Fertilizers stocks are, on average, holding a PEG ratio of 1.13 based on yesterday's closing prices.
The Fertilizers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 244, putting it in the bottom 4% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CF in the coming trading sessions, be sure to utilize Zacks.com.
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CF Industries (CF) Outpaces Stock Market Gains: What You Should Know
CF Industries (CF - Free Report) closed the most recent trading day at $69.45, moving +1.97% from the previous trading session. This change outpaced the S&P 500's 0.69% gain on the day. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq lost 8.94%.
Prior to today's trading, shares of the fertilizer maker had gained 1.22% over the past month. This has outpaced the Basic Materials sector's gain of 0.82% and lagged the S&P 500's gain of 5.41% in that time.
CF Industries will be looking to display strength as it nears its next earnings release. In that report, analysts expect CF Industries to post earnings of $2.19 per share. This would mark a year-over-year decline of 64.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.88 billion, down 44.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.97 per share and revenue of $6.86 billion, which would represent changes of -54.14% and -38.65%, respectively, from the prior year.
Any recent changes to analyst estimates for CF Industries should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 6.49% lower. CF Industries is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, CF Industries is currently trading at a Forward P/E ratio of 8.55. This valuation marks a premium compared to its industry's average Forward P/E of 8.22.
It is also worth noting that CF currently has a PEG ratio of 1.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Fertilizers stocks are, on average, holding a PEG ratio of 1.13 based on yesterday's closing prices.
The Fertilizers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 244, putting it in the bottom 4% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CF in the coming trading sessions, be sure to utilize Zacks.com.