Back to top

Image: Bigstock

CF Industries (CF) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

CF Industries (CF - Free Report) closed the latest trading day at $77.49, indicating a +0.7% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 0.07%. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq decreased by 0.36%.

Prior to today's trading, shares of the fertilizer maker had lost 3.4% over the past month. This has was narrower than the Basic Materials sector's loss of 7% and lagged the S&P 500's gain of 3.05% in that time.

The investment community will be closely monitoring the performance of CF Industries in its forthcoming earnings report. The company is scheduled to release its earnings on February 14, 2024. The company's upcoming EPS is projected at $1.56, signifying a 64.14% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.49 billion, showing a 42.99% drop compared to the year-ago quarter.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for CF Industries. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.8% increase. At present, CF Industries boasts a Zacks Rank of #3 (Hold).

Investors should also note CF Industries's current valuation metrics, including its Forward P/E ratio of 11.87. This represents a premium compared to its industry's average Forward P/E of 10.06.

It's also important to note that CF currently trades at a PEG ratio of 1.98. 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. Fertilizers stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.

The Fertilizers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 220, putting it in the bottom 13% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


CF Industries Holdings, Inc. (CF) - free report >>

Published in