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CF Industries (CF) Hits New 52-Week High on Bright Prospects

Zacks Equity Research
CF Industries (CF) Hits New 52-Week High on Bright Prospects

Shares of CF Industries Holdings, Inc. CF scaled a fresh 52-week high of $54.03 on Sep 19, before closing the session at $53.13.

CF Industries has a market cap of roughly $12.4 billion and average volume of shares traded in the past three months was around 2,498.1K. The company has expected long-term earnings per share (EPS) growth rate of 6%.

CF Industries’ shares have gained 37.4% in the past six months compared with the industry’s rise of 22.2%.



Driving Factors

Upbeat outlook for nitrogen demand and pricing is contributing to the rally in CF Industries’ shares.

CF Industries gains from higher nitrogen demand driven by healthy corn plantations and cyclical recovery in the nitrogen fertilizer industry. The company expects strong demand in Brazil, a major market, through the rest of 2018. It expects year-over-year increase in urea imports to Brazil during the second half of 2018.

Moreover, higher production costs in Europe and China along with reduced production due to the enforcement of environmental regulations in China tightened global nitrogen supply and demand balance as well as hiked nitrogen prices during the first half of 2018. These factors are expected to continue driving nitrogen prices in the third quarter. The company also expects demand in Brazil and India to support global nitrogen prices through the balance of 2018.

Notably, earnings estimates for CF Industries are also moving higher over the past month. While the Zacks Consensus Estimate for the third quarter surged 100% to 10 cents, the same for 2018 increased 14.4% to $1.43. Moreover, the Zacks Consensus Estimate for 2019 earnings moved up 2.8% to $1.81.

CF Industries Holdings, Inc. Price and Consensus

 

CF Industries Holdings, Inc. Price and Consensus | CF Industries Holdings, Inc. Quote

 

Zacks Rank & Other Stocks to Consider

CF Industries currently carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks in the basic materials space are Ingevity Corporation NGVT, Celanese Corporation CE and Huntsman Corporation HUN, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ingevity has an expected long-term earnings growth rate of 12%. Its shares have rallied 63.8% in the past year.

Celanese has an expected long-term earnings growth rate of 10%. Its shares have gained 10.3% in the past year.

Huntsman has an expected long-term earnings growth rate of 8.5%. Its shares have moved up 4.2% in a year.

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Huntsman Corporation (HUN) : Free Stock Analysis Report
 
Celanese Corporation (CE) : Free Stock Analysis Report
 
Ingevity Corporation (NGVT) : Free Stock Analysis Report
 
CF Industries Holdings, Inc. (CF) : Free Stock Analysis Report
 
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