CF Industries (CF) closed the most recent trading day at $101.53, moving -0.17% from the previous trading session. This change was narrower than the S&P 500's 0.84% loss on the day. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the fertilizer maker had lost 9.6% over the past month, lagging the Basic Materials sector's loss of 6.82% and outpacing the S&P 500's loss of 10.24% in that time.
Wall Street will be looking for positivity from CF Industries as it approaches its next earnings report date. 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.42 billion, up 77.77% from the year-ago period.
CF's full-year Zacks Consensus Estimates are calling for earnings of $19.17 per share and revenue of $11.74 billion. These results would represent year-over-year changes of +352.12% and +79.49%, respectively.
It is also important to note the recent changes to analyst estimates for CF Industries. 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 shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. CF Industries is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note CF Industries's current valuation metrics, including its Forward P/E ratio of 5.3. Its industry sports an average Forward P/E of 5.3, so we one might conclude that CF Industries is trading at a no noticeable deviation comparatively.
Meanwhile, CF's PEG ratio is currently 0.88. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Fertilizers was holding an average PEG ratio of 0.62 at yesterday's closing price.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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