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Nutrien (NTR) Gains on Strong Demand and Higher Prices

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Nutrien Ltd. (NTR - Free Report) is benefiting from higher prices and healthy demand for crop nutrients, its actions to boost production and strategic acquisitions.

Shares of Nutrien, a Zacks Rank #1 (Strong Buy) stock, have gained 30.2% over the past year against the 33.9% rise of its industry.

 

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Nutrien is well placed to gain from solid demand and higher prices for fertilizers, supported by the strength in global agriculture markets. It is expected to benefit 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 of 2022. It saw higher sales across all the segments in the quarter, driven by higher prices and strong demand.

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 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 231.7% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 112.4% 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 20%. ALB has rallied roughly 33% in a year. The company flaunts a Zacks Rank #1.

Cabot, currently carrying a Zacks Rank #1, has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 6% 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 12% over a year.

Allegheny has a projected earnings growth rate of 1,076.9% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 40.4% upward in the past 60 days.

Allegheny’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI has gained around 7% in a year and currently sports a Zacks Rank #1.


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