Nutrien (NTR) Stock Sinks As Market Gains: What You Should Know
Nutrien (NTR) closed the most recent trading day at $81.20, moving -1.86% from the previous trading session. This change lagged the S&P 500's daily gain of 1.29%. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq lost 4.94%.
Heading into today, shares of the producer of potash and other fertilizers had gained 7.64% over the past month, outpacing the Basic Materials sector's gain of 3.27% and the S&P 500's gain of 5.64% in that time.
Wall Street will be looking for positivity from Nutrien as it approaches its next earnings report date. This is expected to be February 15, 2023. In that report, analysts expect Nutrien to post earnings of $2.63 per share. This would mark year-over-year growth of 6.48%. Our most recent consensus estimate is calling for quarterly revenue of $7.55 billion, up 3.88% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Nutrien. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 10.21% lower within the past month. Nutrien is currently sporting a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Nutrien currently has a Forward P/E ratio of 7.14. Its industry sports an average Forward P/E of 6.45, so we one might conclude that Nutrien is trading at a premium comparatively.
We can also see that NTR currently has a PEG ratio of 0.89. 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. The Fertilizers was holding an average PEG ratio of 0.89 at yesterday's closing price.
The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 233, which puts it in the bottom 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries 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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