Here's Why Nutrien (NTR) Gained But Lagged the Market Today
The most recent trading session ended with Nutrien (NTR) standing at $51.18, reflecting a +0.63% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.76% for the day. Elsewhere, the Dow saw an upswing of 0.59%, while the tech-heavy Nasdaq appreciated by 1.12%.
Coming into today, shares of the producer of potash and other fertilizers had lost 9.71% in the past month. In that same time, the Basic Materials sector lost 7.22%, while the S&P 500 gained 2.5%.
The investment community will be paying close attention to the earnings performance of Nutrien in its upcoming release. The company is slated to reveal its earnings on February 21, 2024. The company is predicted to post an EPS of $0.72, indicating a 64.36% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.24 billion, indicating a 30.4% decrease compared to the same quarter of the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nutrien. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.4% lower. Right now, Nutrien possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Nutrien is currently trading at a Forward P/E ratio of 10.96. Its industry sports an average Forward P/E of 10.12, so one might conclude that Nutrien is trading at a premium comparatively.
One should further note that NTR currently holds a PEG ratio of 1.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Fertilizers industry stood at 1.45 at the close of the market yesterday.
The Fertilizers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 219, putting it in the bottom 14% of all 250+ industries.
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.
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Nutrien Ltd. (NTR) : Free Stock Analysis Report
