Nutrien (NTR) Stock Sinks As Market Gains: Here's Why
The most recent trading session ended with Nutrien (NTR) standing at $56.73, reflecting a -0.11% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.73%. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.93%.
Shares of the producer of potash and other fertilizers witnessed a loss of 8.95% over the previous month, trailing the performance of the Basic Materials sector with its loss of 6.41% and the S&P 500's loss of 2.29%.
The investment community will be closely monitoring the performance of Nutrien in its forthcoming earnings report. The company is scheduled to release its earnings on November 1, 2023. The company is expected to report EPS of $0.73, down 70.92% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.69 billion, down 30.51% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.46 per share and a revenue of $28.61 billion, indicating changes of -58.61% and -24.48%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.43% rise in the Zacks Consensus EPS estimate. Nutrien is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Nutrien is at present trading with a Forward P/E ratio of 10.4. This represents a premium compared to its industry's average Forward P/E of 10.21.
Also, we should mention that NTR has a PEG ratio of 1.3. 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. Fertilizers stocks are, on average, holding a PEG ratio of 1.3 based on yesterday's closing prices.
The Fertilizers industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 99, positioning it in the top 40% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Nutrien Ltd. (NTR) : Free Stock Analysis Report
