We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CF Industries (CF) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
CF Industries (CF - Free Report) closed at $70.43 in the latest trading session, marking a +1.45% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.12%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.14%.
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 $2.51 per share. This would mark a year-over-year decline of 59.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.88 billion, down 44.42% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.97 per share and revenue of $6.86 billion. These totals would mark changes of -54.14% and -38.65%, respectively, from last year.
Any recent changes to analyst estimates for CF Industries should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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 2.85% lower within the past month. CF Industries is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that CF Industries has a Forward P/E ratio of 8.71 right now. Its industry sports an average Forward P/E of 8.28, 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 1.45. 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. Fertilizers stocks are, on average, holding a PEG ratio of 1.11 based on yesterday's closing prices.
The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 240, which puts it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CF Industries (CF) Outpaces Stock Market Gains: What You Should Know
CF Industries (CF - Free Report) closed at $70.43 in the latest trading session, marking a +1.45% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.12%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.14%.
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 $2.51 per share. This would mark a year-over-year decline of 59.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.88 billion, down 44.42% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.97 per share and revenue of $6.86 billion. These totals would mark changes of -54.14% and -38.65%, respectively, from last year.
Any recent changes to analyst estimates for CF Industries should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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 2.85% lower within the past month. CF Industries is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that CF Industries has a Forward P/E ratio of 8.71 right now. Its industry sports an average Forward P/E of 8.28, 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 1.45. 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. Fertilizers stocks are, on average, holding a PEG ratio of 1.11 based on yesterday's closing prices.
The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 240, which puts it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.