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Nutrien (NTR) Dips More Than Broader Markets: What You Should Know

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Nutrien (NTR - Free Report) closed the most recent trading day at $72.97, moving -1.56% from the previous trading session. This move lagged the S&P 500's daily loss of 1.45%. Elsewhere, the Dow lost 1.05%, while the tech-heavy Nasdaq lost 5.88%.

Prior to today's trading, shares of the producer of potash and other fertilizers had lost 7.4% over the past month. This has lagged the Basic Materials sector's gain of 12.86% and the S&P 500's loss of 1.68% in that time.

Wall Street will be looking for positivity from Nutrien as it approaches its next earnings report date. On that day, Nutrien is projected to report earnings of $2.76 per share, which would represent year-over-year growth of 11.74%. Meanwhile, our latest consensus estimate is calling for revenue of $7.76 billion, up 6.82% from the prior-year quarter.

NTR's full-year Zacks Consensus Estimates are calling for earnings of $13.86 per share and revenue of $37.81 billion. These results would represent year-over-year changes of +122.47% and +36.44%, respectively.

Investors might also notice recent changes to analyst estimates for Nutrien. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.22% lower. Nutrien is currently a Zacks Rank #5 (Strong Sell).

Investors should also note Nutrien's current valuation metrics, including its Forward P/E ratio of 5.35. For comparison, its industry has an average Forward P/E of 5.07, which means Nutrien is trading at a premium to the group.

Investors should also note that NTR has a PEG ratio of 0.67 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Fertilizers industry currently had an average PEG ratio of 0.67 as of yesterday's close.

The Fertilizers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 228, putting it in the bottom 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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