Back to top

Image: Bigstock

Nutrien (NTR) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Nutrien (NTR - Free Report) closed the most recent trading day at $62.46, moving -1.36% from the previous trading session. This move lagged the S&P 500's daily loss of 0.32%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq lost 0.89%.

Heading into today, shares of the producer of potash and other fertilizers had lost 6.7% over the past month, lagging the Basic Materials sector's loss of 1.57% and the S&P 500's loss of 0.12% in that time.

Nutrien will be looking to display strength as it nears its next earnings release. In that report, analysts expect Nutrien to post earnings of $0.96 per share. This would mark a year-over-year decline of 61.75%. Our most recent consensus estimate is calling for quarterly revenue of $5.68 billion, down 30.6% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.17 per share and revenue of $28.63 billion. These totals would mark changes of -53.22% and -24.43%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Nutrien. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 3.02% higher. Nutrien is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, Nutrien currently has a Forward P/E ratio of 10.27. This represents a discount compared to its industry's average Forward P/E of 10.44.

Investors should also note that NTR has a PEG ratio of 1.28 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 1.4 at yesterday's closing price.

The Fertilizers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 233, putting it in the bottom 8% 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 NTR in the coming trading sessions, be sure to utilize

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Nutrien Ltd. (NTR) - free report >>

Published in