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.
Here's Why You Should Hold Onto Nutrien (NTR) Stock for Now
Read MoreHide Full Article
Nutrien Ltd. (NTR - Free Report) is expected to gain from higher demand for crop nutrients, its actions to reduce costs and strategic acquisitions amid challenges from lower prices.
The company’s shares are down 30.8% over a year, compared with a 30.2% decline recorded by its industry.
Image Source: Zacks Investment Research
Let’s find out why this Zacks Rank #3 (Hold) stock is worth retaining at the moment.
Strong Demand, Cost Reductions Aid NTR
Nutrien is expected to benefit from increased demand for fertilizers, backed by the strength in global agriculture markets. It is seeing strong demand in its major markets, particularly North America. It delivered record potash sales volumes in the third quarter of 2023 and gained from strong crop nutrient demand in North America.
Strong grower economics and higher crop commodity prices are expected to drive potash demand globally. The phosphate market is also benefiting from higher global demand and low producer and channel inventories. Demand for nitrogen fertilizer also remains healthy in major markets. Global nitrogen requirement is being driven by demand in North America, India and Brazil.
Moreover, the company should gain from acquisitions and increased adoption of its digital platform. It continues to expand its footprint in Brazil through acquisitions. The company expanded its network through the completion of 21 retail acquisitions in 2022 with a focus on expanding its Brazil network.
Cost and operational efficiency initiatives are also expected to aid the company’s performance. Nutrien remains focused on lowering the cost of production in the potash business. Moreover, the company has announced a number of strategic actions to reduce its controllable costs and boost free cash flow this year and beyond. Lower natural gas costs are also contributing to a decline in its cost of goods sold.
Weak Prices May Play Spoilsport
Softer fertilizer prices are expected hurt Nutrien’s performance. Prices of phosphate and potash have retreated since the back half of 2022 from their peak levels attained in the first half riding on the impacts of the Russia-Ukraine war and disruptions due to the sanctions in Belarus. Global nitrogen prices have declined since the beginning of 2023 driven by a rise in global supply availability. Lower prices are expected to weigh on NTR’s profitability.
Better-ranked stocks worth a look in the basic materials space include Denison Mines Corp. (DNN - Free Report) , Axalta Coating Systems Ltd. (AXTA - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
Denison Mines has a projected earnings growth rate of 100% for the current year. DNN has a trailing four-quarter earnings surprise of roughly 225%, on average. The stock is up around 64% in a year. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for Axalta Coating Systems’ current-year earnings has been revised upward by 8.2%. AXTA, carrying a Zacks Rank #1, beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 6.7%. The company’s shares have gained around 24% in the past year.
Hawkins has a projected earnings growth rate of 21% for the current year. It currently carries a Zacks Rank #2 (Buy). Hawkins has a trailing four-quarter earnings surprise of roughly 27.5%, on average. HWKN shares are up around 61% in a year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why You Should Hold Onto Nutrien (NTR) Stock for Now
Nutrien Ltd. (NTR - Free Report) is expected to gain from higher demand for crop nutrients, its actions to reduce costs and strategic acquisitions amid challenges from lower prices.
The company’s shares are down 30.8% over a year, compared with a 30.2% decline recorded by its industry.
Image Source: Zacks Investment Research
Let’s find out why this Zacks Rank #3 (Hold) stock is worth retaining at the moment.
Strong Demand, Cost Reductions Aid NTR
Nutrien is expected to benefit from increased demand for fertilizers, backed by the strength in global agriculture markets. It is seeing strong demand in its major markets, particularly North America. It delivered record potash sales volumes in the third quarter of 2023 and gained from strong crop nutrient demand in North America.
Strong grower economics and higher crop commodity prices are expected to drive potash demand globally. The phosphate market is also benefiting from higher global demand and low producer and channel inventories. Demand for nitrogen fertilizer also remains healthy in major markets. Global nitrogen requirement is being driven by demand in North America, India and Brazil.
Moreover, the company should gain from acquisitions and increased adoption of its digital platform. It continues to expand its footprint in Brazil through acquisitions. The company expanded its network through the completion of 21 retail acquisitions in 2022 with a focus on expanding its Brazil network.
Cost and operational efficiency initiatives are also expected to aid the company’s performance. Nutrien remains focused on lowering the cost of production in the potash business. Moreover, the company has announced a number of strategic actions to reduce its controllable costs and boost free cash flow this year and beyond. Lower natural gas costs are also contributing to a decline in its cost of goods sold.
Weak Prices May Play Spoilsport
Softer fertilizer prices are expected hurt Nutrien’s performance. Prices of phosphate and potash have retreated since the back half of 2022 from their peak levels attained in the first half riding on the impacts of the Russia-Ukraine war and disruptions due to the sanctions in Belarus. Global nitrogen prices have declined since the beginning of 2023 driven by a rise in global supply availability. Lower prices are expected to weigh on NTR’s profitability.
Nutrien Ltd. Price and Consensus
Nutrien Ltd. price-consensus-chart | Nutrien Ltd. Quote
Stocks to Consider
Better-ranked stocks worth a look in the basic materials space include Denison Mines Corp. (DNN - Free Report) , Axalta Coating Systems Ltd. (AXTA - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
Denison Mines has a projected earnings growth rate of 100% for the current year. DNN has a trailing four-quarter earnings surprise of roughly 225%, on average. The stock is up around 64% in a year. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for Axalta Coating Systems’ current-year earnings has been revised upward by 8.2%. AXTA, carrying a Zacks Rank #1, beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 6.7%. The company’s shares have gained around 24% in the past year.
Hawkins has a projected earnings growth rate of 21% for the current year. It currently carries a Zacks Rank #2 (Buy). Hawkins has a trailing four-quarter earnings surprise of roughly 27.5%, on average. HWKN shares are up around 61% in a year.