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Nutrien (NTR) Falls More Steeply Than Broader Market: What Investors Need to Know

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Nutrien (NTR - Free Report) closed at $59.90 in the latest trading session, marking a -1.38% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.63%. Meanwhile, the Dow lost 0.51%, and the Nasdaq, a tech-heavy index, lost 0.63%.

The producer of potash and other fertilizers's stock has dropped by 3.51% in the past month, exceeding the Basic Materials sector's loss of 4.1% and lagging the S&P 500's loss of 2.35%.

Investors will be eagerly watching for the performance of Nutrien in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 1, 2023. On that day, Nutrien is projected to report earnings of $0.73 per share, which would represent a year-over-year decline of 70.92%. Meanwhile, our latest consensus estimate is calling for revenue of $5.7 billion, down 30.34% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.46 per share and revenue of $28.63 billion, indicating changes of -58.61% and -24.43%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Nutrien should also be noted by investors. Such recent modifications usually signify the changing landscape 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. 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.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.43% upward. At present, Nutrien boasts a Zacks Rank of #3 (Hold).

With respect to valuation, Nutrien is currently being traded at a Forward P/E ratio of 11.12. Its industry sports an average Forward P/E of 10.82, so one might conclude that Nutrien is trading at a premium comparatively.

It is also worth noting that NTR currently has a PEG ratio of 1.39. 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. As of the close of trade yesterday, the Fertilizers industry held an average PEG ratio of 1.39.

The Fertilizers industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 33% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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