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Nutrien (NTR) Shares Pop 15% in 3 Months: What's Driving It?
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Nutrien Ltd.’s (NTR - Free Report) shares have shot up 15% over the past three months. The company has also outperformed its industry’s rise of 3.3% over the same time frame. It has also topped the S&P 500’s roughly 2% rise over the same period.
Let’s dive into the factors behind this fertilizer maker’s stock price appreciation.
Image Source: Zacks Investment Research
What’s Aiding NTR?
Forecast-topping earnings performance in the first quarter of 2024 and upbeat prospects have contributed to the rally in the company's shares. NTR’s adjusted earnings per share of 46 cents topped the Zacks Consensus Estimate of 36 cents. Sales fell around 12% year over year to $5,389 million in the quarter, but beat the Zacks Consensus Estimate of $5,375.6 million. The company benefited from increased earnings in its Retail division, higher sales volumes for fertilizers and reduced natural gas costs, which offset a decline in fertilizer selling prices.
Nutrien is benefiting from increased demand for fertilizers, backed by the strength in global agriculture markets. It is seeing strong demand in its major markets, particularly North America. NTR’s sales volumes in North America rose in the first quarter, driven by lower channel inventory and more typical purchasing behavior. Offshore sales volumes also saw a boost due to heightened demand in key international markets.
Strong grower economics, improved affordability and low inventory levels are expected to drive potash demand globally. The phosphate market is also benefiting from higher global demand and low producer and channel inventories. Demand for nitrogen fertilizer also remains healthy in major markets. Global nitrogen requirement is being driven by demand in North America, India and Brazil.
Moreover, cost and operational efficiency initiatives are expected to aid the company’s performance. It remains focused on lowering the cost of production in the potash business. The company has also announced a number of strategic actions to reduce its controllable costs and boost free cash flow. Lower natural gas costs are also contributing to a decline in its cost of goods sold.
Nutrien should also gain from acquisitions and increased adoption of its digital platform. It continues to expand its footprint in Brazil through acquisitions. NTR completed a number of acquisitions in 2023 and expects to continue pursuing targeted opportunities in its core markets this year.
Better-ranked stocks in the basic materials space include Axalta Coating Systems Ltd. (AXTA - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and ATI Inc. (ATI - Free Report) .
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 15.1%. The company’s shares have soared roughly 130% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axalta Coating Systems, carrying a Zacks Rank #1, has a projected earnings growth rate of 26.8% for the current year. In the past 60 days, the consensus estimate for AXTA's current-year earnings has been revised upward by 5.9%. The company’s shares have gained roughly 15% in the past year.
ATI currently carries a Zacks Rank #2 (Buy). ATI beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 8.3%. The company’s shares have rallied around 64% in the past year.
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Nutrien (NTR) Shares Pop 15% in 3 Months: What's Driving It?
Nutrien Ltd.’s (NTR - Free Report) shares have shot up 15% over the past three months. The company has also outperformed its industry’s rise of 3.3% over the same time frame. It has also topped the S&P 500’s roughly 2% rise over the same period.
Let’s dive into the factors behind this fertilizer maker’s stock price appreciation.
Image Source: Zacks Investment Research
What’s Aiding NTR?
Forecast-topping earnings performance in the first quarter of 2024 and upbeat prospects have contributed to the rally in the company's shares. NTR’s adjusted earnings per share of 46 cents topped the Zacks Consensus Estimate of 36 cents. Sales fell around 12% year over year to $5,389 million in the quarter, but beat the Zacks Consensus Estimate of $5,375.6 million. The company benefited from increased earnings in its Retail division, higher sales volumes for fertilizers and reduced natural gas costs, which offset a decline in fertilizer selling prices.
Nutrien is benefiting from increased demand for fertilizers, backed by the strength in global agriculture markets. It is seeing strong demand in its major markets, particularly North America. NTR’s sales volumes in North America rose in the first quarter, driven by lower channel inventory and more typical purchasing behavior. Offshore sales volumes also saw a boost due to heightened demand in key international markets.
Strong grower economics, improved affordability and low inventory levels are expected to drive potash demand globally. The phosphate market is also benefiting from higher global demand and low producer and channel inventories. Demand for nitrogen fertilizer also remains healthy in major markets. Global nitrogen requirement is being driven by demand in North America, India and Brazil.
Moreover, cost and operational efficiency initiatives are expected to aid the company’s performance. It remains focused on lowering the cost of production in the potash business. The company has also announced a number of strategic actions to reduce its controllable costs and boost free cash flow. Lower natural gas costs are also contributing to a decline in its cost of goods sold.
Nutrien should also gain from acquisitions and increased adoption of its digital platform. It continues to expand its footprint in Brazil through acquisitions. NTR completed a number of acquisitions in 2023 and expects to continue pursuing targeted opportunities in its core markets this year.
Nutrien Ltd. Price and Consensus
Nutrien Ltd. price-consensus-chart | Nutrien Ltd. Quote
Stocks to Consider
Better-ranked stocks in the basic materials space include Axalta Coating Systems Ltd. (AXTA - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and ATI Inc. (ATI - Free Report) .
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 15.1%. The company’s shares have soared roughly 130% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axalta Coating Systems, carrying a Zacks Rank #1, has a projected earnings growth rate of 26.8% for the current year. In the past 60 days, the consensus estimate for AXTA's current-year earnings has been revised upward by 5.9%. The company’s shares have gained roughly 15% in the past year.
ATI currently carries a Zacks Rank #2 (Buy). ATI beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 8.3%. The company’s shares have rallied around 64% in the past year.