CF Industries (CF) Gains As Market Dips: What You Should Know
In the latest trading session, CF Industries (CF) closed at $80.88, marking a +0.65% move from the previous day. This change outpaced the S&P 500's 1.43% loss on the day. On the other hand, the Dow registered a loss of 0.32%, and the technology-centric Nasdaq decreased by 2.43%.
The the stock of fertilizer maker has fallen by 5.6% in the past month, lagging the Basic Materials sector's loss of 5.28% and the S&P 500's loss of 1.55%.
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 November 1, 2023. The company is predicted to post an EPS of $0.94, indicating a 63.14% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.29 billion, down 44.24% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.01 per share and revenue of $6.59 billion. These totals would mark changes of -53.91% and -41.05%, respectively, from last year.
Any recent changes to analyst estimates for CF Industries should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.2% rise in the Zacks Consensus EPS estimate. CF Industries presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CF Industries has a Forward P/E ratio of 10.03 right now. This signifies a discount in comparison to the average Forward P/E of 10.21 for its industry.
Investors should also note that CF has a PEG ratio of 1.67 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Fertilizers industry was having an average PEG ratio of 1.3.
The Fertilizers industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 167, this industry ranks in the bottom 34% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CF Industries Holdings, Inc. (CF) : Free Stock Analysis Report
