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Nutrien (NTR) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Nutrien (NTR - Free Report) closed at $59.70, marking a -1.49% move from the previous day. This change lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq lost 1.26%.

Prior to today's trading, shares of the producer of potash and other fertilizers had gained 5.06% over the past month. This has outpaced the Basic Materials sector's gain of 1.55% and the S&P 500's gain of 4.31% in that time.

Nutrien will be looking to display strength as it nears its next earnings release. On that day, Nutrien is projected to report earnings of $2.97 per share, which would represent a year-over-year decline of 49.23%. Meanwhile, our latest consensus estimate is calling for revenue of $11.21 billion, down 22.74% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.99 per share and revenue of $29.16 billion. These totals would mark changes of -47.01% and -23.02%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Nutrien. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 3.51% lower. Nutrien is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Nutrien currently has a Forward P/E ratio of 8.67. This valuation marks a premium compared to its industry's average Forward P/E of 8.29.

Also, we should mention that NTR has a PEG ratio of 1.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Fertilizers stocks are, on average, holding a PEG ratio of 1.13 based on yesterday's closing prices.

The Fertilizers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 225, putting it in the bottom 11% 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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