Key Takeaways
- NTR stock has rallied 14.7% over the past month, outperforming the Zacks Fertilizers industry's 13.1% rise.
- Earnings estimates for NTR for 2025 have gone up by 2.5% over the past 60 days, reflecting analyst optimism.
- NTR shares are currently trading lower than the industry average, suggesting that the stock still has upside.
Nutrien Ltd.’s NTR stock looks promising at the moment. NTR is gaining from healthy demand for crop nutrients, its actions to reduce costs and strategic acquisitions. Rising earnings estimates and cheap valuation are other positives. NTR stock has rallied 14.7% over the past month, outperforming the Zacks Fertilizers industry’s 13.1% rise.
We are positive on the company’s prospects and believe that the time is right for you to add the stock to the portfolio as it is poised to carry the momentum ahead.
Image Source: Zacks Investment Research
Let's see what makes NTR stock an attractive investment option at the moment.
Nutrien’s FY25 Earnings Estimates Northbound
Earnings estimates for NTR for 2025 have been going up over the past 60 days, reflecting analysts’ optimism. The Zacks Consensus Estimate for 2025 has increased by 2.5%. The consensus estimate for 2025 earnings is currently pegged at $3.75, reflecting an expected year-over-year growth of 5.8%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Valuation Looks Attractive for NTR Stock
NTR’s shares are currently trading at a level that is lower than the industry average, suggesting that the stock still has upside potential. Going by the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) multiple, which is often used to value fertilizer stocks, NTR is currently trading at a trailing 12-month EV/EBITDA multiple of 7.55, cheaper compared with the industry average of 11.46. NTR also has a Value Score of B.
Healthy Demand, Acquisitions & Cost Cuts Aid NTR Stock
Nutrien is well-placed to benefit from higher demand for fertilizers, backed by the strength in global agriculture markets. It is seeing healthy fertilizer demand in its major markets. Strong grower economics, improved affordability and low inventory levels are expected to drive potash demand globally. The phosphate market also benefits from higher global demand and low producer and channel inventories. Demand for nitrogen fertilizer also remains healthy in major markets. Global nitrogen requirement is driven by demand in North America, India and Brazil. A resurgence in industrial nitrogen demand also bodes well.
NTR should also gain from acquisitions and increased adoption of its digital platform. It continues to expand its footprint in Brazil through acquisitions. It is expected to continue pursuing targeted opportunities in its core markets.
Cost and operational efficiency initiatives are also expected to aid the company’s performance. NTR remains focused on lowering the cost of production in the potash business. The company has announced several strategic actions to reduce its controllable costs and boost free cash flow. NTR has accelerated operational efficiency and cost savings initiatives and anticipates achieving around $200 million of total savings by 2025.
NTR achieved higher potash sales volumes and lower operating costs through the first nine months of 2024, leveraging the strengths of its network and global distribution capabilities to meet increased customer demand. It remains focused on achieving its cost savings target, optimizing capital expenditures, delivering sales volume growth and advancing growth opportunities in the Retail unit.
Nutrien Ltd. Price and Consensus
Nutrien Ltd. price-consensus-chart | Nutrien Ltd. Quote
NTR’s Zacks Rank & Other Key Picks
NTR currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS, Sylvamo Corporation SLVM and ICL Group Ltd ICL, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. CRS’ shares have soared 214% in the past year.
The Zacks Consensus Estimate for ICL Group’s current-year earnings has increased by 8.8% in the past 60 days. ICL beat the consensus estimate in each of the last four quarters with the average surprise being 18.1%.
Sylvamo beat the consensus estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 16.7%, on average. SLVM’s shares have rallied roughly 71% over the past year.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpCarpenter Technology Corporation (CRS) : Free Stock Analysis Report
ICL Group Ltd. (ICL) : Free Stock Analysis Report
Nutrien Ltd. (NTR) : Free Stock Analysis Report
Sylvamo Corporation (SLVM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
