Nutrien (NTR) Stock Drops Despite Market Gains: Important Facts to Note
Nutrien (NTR) closed the most recent trading day at $51.05, moving -0.78% from the previous trading session. This change lagged the S&P 500's 0.22% gain on the day. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.32%.
Shares of the producer of potash and other fertilizers witnessed a loss of 9.85% over the previous month, trailing the performance of the Basic Materials sector with its loss of 7.44% and the S&P 500's gain of 1.61%.
Analysts and investors alike will be keeping a close eye on the performance of Nutrien in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.72, marking a 64.36% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.25 billion, down 30.33% from the year-ago period.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nutrien. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.4% decrease. Nutrien is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Nutrien currently has a Forward P/E ratio of 11.09. This represents a premium compared to its industry's average Forward P/E of 10.08.
One should further note that NTR currently holds a PEG ratio of 1.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Fertilizers was holding an average PEG ratio of 1.44 at yesterday's closing price.
The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 16% of all 250+ industries.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Nutrien Ltd. (NTR) : Free Stock Analysis Report
