How Competitive is Nutrien’s (NTR) Business?
First Eagle Investment Management recently released its Q2 2020 Investor Letter, a copy of which you can download here. The First Eagle Global Fund A Shares posted a return of 14.73% for the second quarter (without sales charge), underperforming its benchmark, the MSCI World Index which returned 19.36% in the same quarter. You should check out First Eagle's top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.
In the said letter, First Eagle highlighted a few stocks and Nutrien Ltd. (NYSE:NTR) is one of them. Nutrien Ltd. (NYSE:NTR) is a fertilizer company. Year-to-date, Nutrien Ltd. (NYSE:NTR) stock lost 25.9% and on August 4th it had a closing price of $34.94. Here is what First Eagle said:
"Potash prices have trended lower year-to-date, challenging Canadian fertilizer company Nutrien. Though sales volumes have held steady and the stock rebounded off its March lows, reduced prices for its primary earnings driver proved to be a headwind in the quarter. While there are some concerns about potash pricing moving forward as a competitor readies a large Canadian mine that is expected to provide a significant boost to potash capacity, we believe Nutrien’s cost structure will allow it to remain competitive in what we view as a stable business."
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In Q1 2020, the number of bullish hedge fund positions on Nutrien Ltd. (NYSE:NTR) stock decreased by about 21% from the previous quarter (see the chart here), so a number of other hedge fund managers don't seem to agree with Nutrien's growth potential. Our calculations showed that Nutrien Ltd. (NYSE:NTR) isn't ranked among the 30 most popular stocks among hedge funds.
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Video: Top 5 Stocks Among Hedge Funds
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Disclosure: None. This article is originally published at Insider Monkey.
