CF Industries (CF) Laps the Stock Market: Here's Why
In the latest market close, CF Industries (CF) reached $76.84, with a +1.76% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 1.25%. Elsewhere, the Dow saw an upswing of 0.97%, while the tech-heavy Nasdaq appreciated by 1.3%.
Coming into today, shares of the fertilizer maker had lost 8.69% in the past month. In that same time, the Basic Materials sector lost 7.18%, while the S&P 500 gained 1.58%.
Analysts and investors alike will be keeping a close eye on the performance of CF Industries in its upcoming earnings disclosure. The company's earnings report is set to go public on February 14, 2024. The company's upcoming EPS is projected at $1.56, signifying a 64.14% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.49 billion, down 42.99% from the year-ago period.
Investors should also note any recent changes to analyst estimates for CF Industries. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.8% higher. Currently, CF Industries is carrying a Zacks Rank of #3 (Hold).
Investors should also note CF Industries's current valuation metrics, including its Forward P/E ratio of 11.65. For comparison, its industry has an average Forward P/E of 9.64, which means CF Industries is trading at a premium to the group.
It is also worth noting that CF currently has a PEG ratio of 1.94. 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. By the end of yesterday's trading, the Fertilizers industry had an average PEG ratio of 1.38.
The Fertilizers industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 198, this industry ranks in the bottom 22% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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CF Industries Holdings, Inc. (CF) : Free Stock Analysis Report
