Nutrien (NTR) Gains on Strong Demand and Higher Prices


Nutrien Ltd. NTR is benefiting from solid demand, higher prices and strong sales volumes.

Shares of Nutrien, a Zacks Rank #1 (Strong Buy) company, have increased 26% in the past year compared with a 15.4% rise of the industry.


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Nutrien is gaining from solid demand and higher prices for fertilizers, especially potash, supported by the strength in global agriculture markets. It is expected to gain from strong potash sales volumes on the back of solid domestic and overseas demand. It expects strong demand for crop inputs in fourth-quarter 2021 as well as tight global fertilizer supply and demand fundamentals to continue into 2022.

The company is also gaining from higher net realized selling prices for crop nutrients witnessed in the third quarter. It saw higher sales across all the segments in the quarter, driven by higher prices and strong demand.

Potash prices have strengthened on the back of robust global demand, aided by strong grower economics, higher crop prices and low global inventory levels. Tight availability and strong demand is driving phosphate prices globally. Lower global supply availability, stemming from reduced operating rates and a spike in energy prices has boosted nitrogen prices. Higher prices are expected to drive the company’s sales and margins for full-year 2021.

Nutrien is also undertaking measures to boost potash production in the wake of tightening global potash market conditions. The move is in response to strong market fundamentals and would provide customers with the crop inputs they require to feed a growing population.

The company is well placed to gain from acquisitions, cost efficiency and increased adoption of its digital platform. NTR also continues to expand its footprint in Brazil through acquisitions, including Tec Agro.

Stocks to Consider

Some other top-ranked stocks worth considering in the basic materials space include Albemarle Corporation ALB, Commercial Metals Company CMC and AdvanSix Inc. ASIX.

Albemarle, currently carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 49.8% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 9.2% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.1%. ALB has rallied around 24.4% in a year.

Commercial Metals, flaunting a Zacks Rank #1, has a projected earnings growth rate of 10.5% for the current fiscal year. CMC’s consensus estimate for the current fiscal year has been revised 6.6% upward in the past 60 days.

Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missing the same once. It has a trailing four-quarter earnings surprise of roughly 7.4%, on average. CMC has rallied around 57% in a year.

AdvanSix has a projected earnings growth rate of 3.9% for the current year. The Zacks Consensus Estimate for ASIX’s earnings for the current year has been revised 1.6% upward in the past 60 days.

AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied 97.8% in a year. It currently carries a Zacks Rank #2.

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Nutrien Ltd. (NTR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.




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