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Here's Why You Should Buy Nutrien (NTR) Stock Right Now

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Nutrien Ltd.’s (NTR - Free Report) stock looks promising at the moment. The fertilizer maker’s shares have soared roughly 45% over the past six months. It is benefiting from higher prices and healthy demand for crop nutrients.

We are positive on the company’s prospects and believe that the time is right for you to add the stock to the portfolio as it looks promising and is poised to carry the momentum ahead.

Let’s delve deeper into the factors that make this Zacks Rank #1 (Strong Buy) stock an attractive choice for investors right now.

Estimates Northbound

Earnings estimate revisions have the greatest impact on stock prices. Over the past two months, the Zacks Consensus Estimate for Nutrien for the current year has increased 27.5%. The consensus estimate for second-quarter 2022 has also been revised 26.6% upward over the same time frame.

Positive Earnings Surprise History

Nutrien has outpaced the Zacks Consensus Estimate in three of the trailing four quarters. In this time frame, it has delivered an average earnings surprise of roughly 5.8%.

Solid Growth Prospects

The Zacks Consensus Estimate for earnings for the current year for Nutrien is currently pegged at $16.40, indicating year-over-year growth of 163.2%. Moreover, earnings are expected to register roughly 170.2% growth in the second quarter.

Growth Drivers in Place

Nutrien is well placed to benefit from solid demand and higher prices for fertilizers, supported by the strength in global agriculture markets. It is expected to gain from strong potash sales volumes on the back of solid domestic and overseas demand.

The company is also gaining from higher net realized selling prices for crop nutrients as witnessed in the first quarter. It saw higher sales across all the segments in the quarter, driven by higher prices and strong demand.

Nutrien, earlier this month, raised its full-year 2022 adjusted EBITDA guidance and full-year adjusted net earnings per share guidance factoring in the expectation of higher realized selling prices, higher potash sales volumes and higher Retail crop nutrients and crop protection products gross margins.

The company now expects adjusted EBITDA of $14.5-$16.5 billion (up from $10-$11.2 billion) for full-year 2022. Adjusted earnings per share has been forecast in the band of $16.20-$18.70 (up from $10.20-$11.80).

Potash prices have strengthened on the back of robust global demand and tight supply. Tight inventory along with healthy demand is also driving phosphate prices globally. Fertilizer prices are also shooting higher amid supply concerns triggered by the Russia-Ukraine conflict. Lower global supply availability stemming from reduced operating rates, strong demand and a spike in energy prices are likely to have also boosted nitrogen prices.  Supply constraints are driving ammonia and nitrate prices. Higher prices are expected to drive the company’s sales and margins for full-year 2022.

Nutrien is also taking actions to boost potash production in the wake of tightening global potash market conditions. The move is in response to strong market fundamentals and is geared to enable its customers have the crop inputs they require to feed a growing population. Its actions to boost production are supporting its potash sales volumes.

The company is also well placed to gain from acquisitions, cost efficiency, and increased adoption of its digital platform. It also continues to expand its footprint in Brazil through acquisitions. Nutrien expanded its network through the completion of 14 retail acquisitions in 2021.

 

Nutrien Ltd. Price and Consensus

 

Nutrien Ltd. Price and Consensus

Nutrien Ltd. price-consensus-chart | Nutrien Ltd. Quote

 

Stocks to Consider

Other top-ranked stocks worth considering in the basic materials space include Albemarle Corporation (ALB - Free Report) , Cabot Corporation (CBT - Free Report) and Allegheny Technologies Inc. (ATI - Free Report) .

Albemarle has a projected earnings growth rate of 190.6% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 96.3% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 22.5%. ALB has rallied roughly 53% in a year. The company flaunts a Zacks Rank #1.

Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 21.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 5.2% upward in the past 60 days.

Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 14% over a year.

Allegheny has a projected earnings growth rate of 869.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 27.3% upward in the past 60 days.

Allegheny’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI has gained around 11% in a year and currently sports a Zacks Rank #1.


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