|Bid||45.00 x 2200|
|Ask||50.68 x 800|
|Day's Range||46.60 - 47.59|
|52 Week Range||28.47 - 50.54|
|PE Ratio (TTM)||18.72|
|Forward Dividend & Yield||1.20 (2.47%)|
|1y Target Est||N/A|
Natural gas is one of the most important inputs required for nitrogen fertilizers. Companies such as CF Industries (CF) that are located in the United States are at a unique advantage with access to low natural gas prices. In its quarterly earnings, CF Industries cited low natural gas as a key driver for improvement in margins.
In our recent series Where Does the Fertilizer Industry Go from Here? we saw the outlook for fertilizer prices provided by CF Industries (CF), Mosaic (MOS), and Nutrien (NTR) in their second-quarter earnings releases. We saw how fertilizer prices have been a key driver of these companies’ better-than-expected results.
The fertilizer sector remained under pressure between August 3 and August 13, with the benchmark VanEck Vectors Agribusiness ETF (MOO) declining 2.4% over the period and the S&P 500 Index falling 53 basis points. Clearly, the agribusiness sector was more impacted than the broader market indexes by trade war tensions and the Turkish currency crisis.
CF Industries (CF) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the fundamentals for CF for clues.
If you are interested in cashing in on CF Industries Holdings Inc’s (NYSE:CF) upcoming dividend of US$0.30 per share, you only have 2 days left to buy the shares beforeRead More...
For nitrogen fertilizer investors, the energy cost is one of the most important considerations because it can account for 60%–70% of the raw materials costs. Companies located in the United States have an advantage compared to companies outside the United States. During the second-quarter earnings call, CF Industries (CF) said, “Increased energy costs, particularly for producers in Europe and China, have raised and flattened the upper half of the global cost curve necessitating higher nitrogen prices.”
After the earnings release, the stock dropped almost 2% to $86.5 but recovered after that. On August 8, FMC recovered to $89.1, which was almost 1% higher than the closing of $88.3 before the earnings release. The current consensus recommendation for FMC as of August 8 was a “buy.” Out of the 18 analysts in the above chart, three analysts had a “strong buy” recommendation, which was one fewer than last month, while the number of analysts recommending a “buy” remained unchanged at 11 month-over-month.
With most major fertilizer players done with their second-quarter earnings, we discussed how analysts reacted positively and upgraded stocks like CF Industries (CF), Mosaic (MOS), and Nutrien (NTR). To learn more, read Analysts Are Becoming More Bullish on Fertilizer Stocks. In this series, we’ll discuss why fertilizer stocks received several upgrades from Wall Street analysts.
Month-over-month, the number of analysts recommending a “strong buy” remained unchanged at five. Consequently, the number of analysts recommending a “hold” rose to seven from six a month ago. This price target was close to what the analysts had at the beginning of this year.
Mosaic (MOS) reported its second-quarter earnings on August 6. The company missed the top-line estimates but beat the bottom-line estimates for the quarter. The overall recommendation for Mosaic as of the date of this writing was a “buy.” Month-over-month, analysts have also become bullish on Mosaic, similar to what we saw for CF Industries. As of August 8, four analysts recommended a “strong buy” on the stock, while six analysts had a “buy” on the stock, which was unchanged over the last month.
The current consensus price target for CF Industries stood at $47.95, which rose by almost 9.9% from $43.63 a month ago. The median price target also rose to $50 from $43 a month ago. The stock closed at $48.57 on August 8, which was already above the mean price target and only 2.9% below the median price target.
The fertilizer sector has gained momentum on the back of favorable fertilizer prices along with a tighter supply environment in the global market. The overall agribusiness sector ETF, the VanEck Vectors Agribusiness ETF (MOO), has gained about 4.1% YTD as of August 8 compared to the S&P 500 Index (SPY), which experienced a 38-basis-point loss over the same period.
Mosaic (MOS) reported its second-quarter earnings on August 6 after the market closed. The company missed the top-line estimates but beat the bottom-line estimates for the quarter. After the company’s earnings release, the stock popped to a high of $30.75 but then fall back to $30.15. On August 6, however, the stock had declined by 1.15%.
The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Index (PMI) data, output in the Basic Materials sector is rising.
Oops, Mr. Market admits that he overreacted to the fertilizer producer's second-quarter 2018 earnings results released yesterday.
Intrepid Potash (IPI) reported its earnings on August 2. The company beat the top-line estimates and missed the bottom-line estimates. After the earnings release, Intrepid Potash stock fell almost 22.2% and settled at $3.26 per share. Intrepid Potash reported $51 million in sales, which beat the estimate of $44 million at the time of the report.
CF Industries is the IBD Stock Of The Day, with the fertilizer company breaking out and moving into buy range after issuing a strong quarterly report.
The Dow lagged near midday Thursday, falling 0.4%, as escalating trade war fears with China fueled selling in blue chip stocks. Tech stocks outperformed.
Investing.com - Apple became the first U.S. company to reach $1 trillion in market capitalization Thursday.