CF Industries (CF) closed at $103.68 in the latest trading session, marking a +1.19% move from the prior day. This move lagged the S&P 500's daily gain of 1.53%. Meanwhile, the Dow gained 1.19%, and the Nasdaq, a tech-heavy index, added 0.14%.
Heading into today, shares of the fertilizer maker had gained 0.09% over the past month, outpacing the Basic Materials sector's gain of 0.07% and the S&P 500's loss of 3.1% in that time.
Investors will be hoping for strength from CF Industries as it approaches its next earnings release. In that report, analysts expect CF Industries to post earnings of $3.48 per share. This would mark year-over-year growth of 262.5%. Our most recent consensus estimate is calling for quarterly revenue of $2.42 billion, up 77.77% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $19.17 per share and revenue of $11.74 billion, which would represent changes of +352.12% and +79.49%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for CF Industries. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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 past month, the Zacks Consensus EPS estimate has moved 1.7% lower. CF Industries is currently a Zacks Rank #3 (Hold).
In terms of valuation, CF Industries is currently trading at a Forward P/E ratio of 5.34. This represents a no noticeable deviation compared to its industry's average Forward P/E of 5.34.
It is also worth noting that CF currently has a PEG ratio of 0.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CF's industry had an average PEG ratio of 0.63 as of yesterday's close.
The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 38% 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.
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