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CF Industries (CF) Dips More Than Broader Markets: What You Should Know

·3 min read

CF Industries (CF) closed at $101.12 in the latest trading session, marking a -1.91% move from the prior day. This change lagged the S&P 500's 1.13% loss on the day. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, added 0.03%.

Coming into today, shares of the fertilizer maker had lost 0.49% in the past month. In that same time, the Basic Materials sector lost 5.62%, while the S&P 500 lost 7.59%.

Investors will be hoping for strength from CF Industries as it approaches its next earnings release. The company is expected to report EPS of $3.48, up 262.5% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.42 billion, up 77.77% from the prior-year quarter.

CF's full-year Zacks Consensus Estimates are calling for earnings of $19.17 per share and revenue of $11.74 billion. These results would represent year-over-year changes of +352.12% and +79.49%, respectively.

It is also important to note the recent changes to analyst estimates for CF Industries. These revisions help to show the ever-changing nature 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CF Industries is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, CF Industries is holding a Forward P/E ratio of 5.38. This represents a no noticeable deviation compared to its industry's average Forward P/E of 5.38.

Also, we should mention that CF has a PEG ratio of 0.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Fertilizers industry currently had an average PEG ratio of 0.65 as of yesterday's close.

The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CF in the coming trading sessions, be sure to utilize Zacks.com.


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