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

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CF Industries (CF) closed the most recent trading day at $85.54, moving +0.15% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 0.05%.

Coming into today, shares of the fertilizer maker had lost 8.41% in the past month. In that same time, the Basic Materials sector lost 22.59%, while the S&P 500 lost 1.89%.

CF Industries will be looking to display strength as it nears its next earnings release. In that report, analysts expect CF Industries to post earnings of $6.28 per share. This would mark year-over-year growth of 450.88%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.7 billion, up 132.83% from the year-ago period.

CF's full-year Zacks Consensus Estimates are calling for earnings of $19.18 per share and revenue of $12.17 billion. These results would represent year-over-year changes of +352.36% and +86.12%, respectively.

Any recent changes to analyst estimates for CF Industries should also be noted by investors. 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 shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CF Industries is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that CF Industries has a Forward P/E ratio of 4.45 right now. For comparison, its industry has an average Forward P/E of 4.32, which means CF Industries is trading at a premium to the group.

Investors should also note that CF has a PEG ratio of 0.74 right now. 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. The Fertilizers was holding an average PEG ratio of 0.51 at yesterday's closing price.

The Fertilizers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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