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CF Industries (CF) Gains As Market Dips: What You Should Know

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CF Industries (CF - Free Report) closed the most recent trading day at $95, moving +0.58% from the previous trading session. The stock outpaced the S&P 500's daily loss of 2.82%. At the same time, the Dow lost 2.38%, and the tech-heavy Nasdaq lost 0.23%.

Prior to today's trading, shares of the fertilizer maker had lost 10.15% over the past month. This has lagged the Basic Materials sector's loss of 9.49% and the S&P 500's loss of 5.33% in that time.

Investors will be hoping for strength from CF Industries as it approaches its next earnings release, which is expected to be May 4, 2022. In that report, analysts expect CF Industries to post earnings of $4.21 per share. This would mark year-over-year growth of 501.43%. Our most recent consensus estimate is calling for quarterly revenue of $2.6 billion, up 147.8% from the year-ago period.

CF's full-year Zacks Consensus Estimates are calling for earnings of $16.58 per share and revenue of $10.7 billion. These results would represent year-over-year changes of +291.04% and +63.65%, respectively.

Investors should also note any recent changes to analyst estimates for CF Industries. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 4.88% higher. CF Industries is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, CF Industries is holding a Forward P/E ratio of 5.7. Its industry sports an average Forward P/E of 7.01, so we one might conclude that CF Industries is trading at a discount comparatively.

It is also worth noting that CF currently has a PEG ratio of 0.95. 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. The Fertilizers industry currently had an average PEG ratio of 0.81 as of yesterday's close.

The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 3, which puts it in the top 2% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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