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Nutrien (NTR) Gains But Lags Market: What You Should Know

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Nutrien (NTR - Free Report) closed at $75.17 in the latest trading session, marking a +1.17% move from the prior day. This change lagged the S&P 500's 1.45% gain on the day. At the same time, the Dow added 0.86%, and the tech-heavy Nasdaq gained 0.44%.

Coming into today, shares of the producer of potash and other fertilizers had gained 6.13% in the past month. In that same time, the Basic Materials sector gained 0.61%, while the S&P 500 lost 3.26%.

Wall Street will be looking for positivity from Nutrien as it approaches its next earnings report date. This is expected to be February 16, 2022. The company is expected to report EPS of $2.30, up 858.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.46 billion, up 59.41% from the year-ago period.

Any recent changes to analyst estimates for Nutrien should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 3.76% higher within the past month. Nutrien is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, Nutrien is holding a Forward P/E ratio of 7.86. Its industry sports an average Forward P/E of 7.86, so we one might conclude that Nutrien is trading at a no noticeable deviation comparatively.

Also, we should mention that NTR has a PEG ratio of 0.98. 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 0.84 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 11, which puts it in the top 5% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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