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Is Nutrien (NTR) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Nutrien (NTR - Free Report) is a stock many investors are watching right now. NTR is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.54, which compares to its industry's average of 13.63. NTR's Forward P/E has been as high as 15.98 and as low as 11.92, with a median of 13.47, all within the past year.

Investors should also note that NTR holds a PEG ratio of 0.86. 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. NTR's industry has an average PEG of 1.28 right now. Over the past 52 weeks, NTR's PEG has been as high as 1.67 and as low as 0.86, with a median of 1.07.

Another notable valuation metric for NTR is its P/B ratio of 1.1. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. NTR's current P/B looks attractive when compared to its industry's average P/B of 2.43. Over the past year, NTR's P/B has been as high as 1.28 and as low as 0.87, with a median of 1.05.

Finally, investors will want to recognize that NTR has a P/CF ratio of 7.39. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.79. Over the past 52 weeks, NTR's P/CF has been as high as 10.72 and as low as 7.15, with a median of 7.96.

These are only a few of the key metrics included in Nutrien's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, NTR looks like an impressive value stock at the moment.

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