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Nutrien (NTR) Gains As Market Dips: What You Should Know

In the latest trading session, Nutrien (NTR) closed at $84.62, marking a +1.12% move from the previous day. This move outpaced the S&P 500's daily loss of 2.01%. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 0.2%.

Heading into today, shares of the producer of potash and other fertilizers had lost 12.44% over the past month, outpacing the Basic Materials sector's loss of 15.03% and lagging the S&P 500's loss of 6.08% in that time.

Nutrien will be looking to display strength as it nears its next earnings release. In that report, analysts expect Nutrien to post earnings of $6.02 per share. This would mark year-over-year growth of 189.42%. Our most recent consensus estimate is calling for quarterly revenue of $15.62 billion, up 60.01% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.11 per share and revenue of $40.97 billion. These totals would mark changes of +174.64% and +47.84%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Nutrien. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

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 past month, the Zacks Consensus EPS estimate has moved 2.61% higher. Nutrien is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, Nutrien is currently trading at a Forward P/E ratio of 4.89. For comparison, its industry has an average Forward P/E of 4.89, which means Nutrien is trading at a no noticeable deviation to the group.

We can also see that NTR currently has a PEG ratio of 0.61. 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. Fertilizers stocks are, on average, holding a PEG ratio of 0.58 based on yesterday's closing prices.

The Fertilizers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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