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Here's Why Nutrien (NTR) Gained But Lagged the Market Today

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In the latest trading session, Nutrien (NTR - Free Report) closed at $53.29, marking a +0.08% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.57%. Elsewhere, the Dow saw an upswing of 0.46%, while the tech-heavy Nasdaq appreciated by 0.75%.

Shares of the producer of potash and other fertilizers witnessed a gain of 1.22% over the previous month, trailing the performance of the Basic Materials sector with its gain of 2.16% and the S&P 500's gain of 3.4%.

Market participants will be closely following the financial results of Nutrien in its upcoming release. The company is predicted to post an EPS of $0.78, indicating a 61.39% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $5.28 billion, reflecting a 29.94% fall from the equivalent quarter last year.

Investors might also notice recent changes to analyst estimates for Nutrien. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.65% higher. Nutrien presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Nutrien currently has a Forward P/E ratio of 10.98. This represents a premium compared to its industry's average Forward P/E of 10.7.

One should further note that NTR currently holds a PEG ratio of 1.37. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Fertilizers stocks are, on average, holding a PEG ratio of 1.53 based on yesterday's closing prices.

The Fertilizers industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 246, positioning it in the bottom 3% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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