Nutrien (NTR) Dips More Than Broader Markets: What You Should Know

This story originally appeared on Zacks

In the last trading session, Nutrien (NTR) closed at $69.25, recording a -0.99% move from the day before. This change delayed the daily loss for the S&P 500 by 0.1%. Meanwhile, the Dow Jones lost 0.47%, and the tech-heavy Nasdaq lost 0.47%.

– Zacks

Heading into the day, shares of the potash and other fertilizer producer have lost 1.01% over the past month, lagging the basic materials sector’s 6.68% gain and the S&P 500’s 3.67% gain in that time.

Investors are hoping for some strength from Nutrien as it nears its next earnings release. On that day, Nutrien is expected to report earnings of $2.25 per share, which represents 837.5% year-over-year growth. Our latest consensus estimate calls for quarterly revenue of $6.49 billion, up 60.13% over the same period last year.

Investors may also notice recent changes in analyst estimates for Nutrien. These recent reviews tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive rating reviews as a good sign of the company’s business outlook.

Our research shows that these discretionary changes are directly correlated with near-term stock prices. Investors can take advantage of this using Zacks Rank. This model takes into account these changes in grading and provides a simple and actionable rating system.

The Zacks Rank system ranges from #1 (strong buy) to #5 (strong sell). It has a proven track record of success, subject to external scrutiny, with the #1 stock having averaged a +25% annual return since 1988. Zacks Consensus EPS estimate is up 4.99% over the past month. Nutrien is currently rated by Zacks #1 (strong buy).

Valuation is also important, so investors should note that Nutrien has a forward P/E ratio of 7.97 at the moment. This does not represent any significant deviation compared to the industry average forward P/E of 7.97.

Meanwhile, NTR’s P/E ratio is 1. This metric is used similarly to the famous P/E ratio, but PEG also takes into account the expected earnings growth rate of a stock. Industry NTR’s average PEG ratio was 0.79 as of yesterday’s close.

The fertilizer industry is part of the basic materials sector. This group has a Zacks Industry 4 rating, placing it in the top 2% of all 250+ industries.

Zacks Industry Ranking measures the strength of our industry groups by measuring the average Zacks rating of the individual stocks within the groups. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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