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Nutrien (NTR) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Nutrien (NTR - Free Report) closed at $64.26, marking a -0.06% move from the previous day. This change lagged the S&P 500's 0.03% gain on the day. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, lost 1.37%.

Coming into today, shares of the producer of potash and other fertilizers had gained 7.71% in the past month. In that same time, the Basic Materials sector gained 4.07%, while the S&P 500 gained 3.43%.

Investors will be hoping for strength from Nutrien as it approaches its next earnings release, which is expected to be August 2, 2023. On that day, Nutrien is projected to report earnings of $2.91 per share, which would represent a year-over-year decline of 50.26%. Our most recent consensus estimate is calling for quarterly revenue of $11.18 billion, down 22.93% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.78 per share and revenue of $28.95 billion, which would represent changes of -48.6% and -23.57%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Nutrien. 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. Within the past 30 days, our consensus EPS projection has moved 3.34% lower. Nutrien is currently a Zacks Rank #5 (Strong Sell).

Investors should also note Nutrien's current valuation metrics, including its Forward P/E ratio of 9.49. For comparison, its industry has an average Forward P/E of 9.76, which means Nutrien is trading at a discount to the group.

Investors should also note that NTR has a PEG ratio of 1.19 right now. 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. NTR's industry had an average PEG ratio of 1.34 as of yesterday's close.

The Fertilizers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 249, putting it in the bottom 2% 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.


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