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Nutrien (NTR) closed the most recent trading day at $65.83, moving -0.65% from the previous trading session. This change was narrower than the S&P 500’s daily loss of 2.04%.

Heading into today, shares of the producer of potash and other fertilizers had gained 8.8% over the past month, outpacing the Basic Materials sector’s loss of 6.35% and the S&P 500’s loss of 1.36% in that time.

NTR will be looking to display strength as it nears its next earnings release. In that report, analysts expect NTR to post earnings of $1.17 per share. This would mark year-over-year growth of 408.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.74 billion, up 36.5% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.93 per share and revenue of $25.18 billion, which would represent changes of +173.89% and +20.69%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for NTR. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 4.05% higher within the past month. NTR currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that NTR has a Forward P/E ratio of 13.44 right now. Its industry sports an average Forward P/E of 13.44, so we one might conclude that NTR is trading at a no noticeable deviation comparatively.

We can also see that NTR currently has a PEG ratio of 1.68. 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. The Fertilizers was holding an average PEG ratio of 1.42 at yesterday’s closing price.

The Fertilizers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 13, putting it in the top 6% 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.

To follow NTR in the coming trading sessions, be sure to utilize Zacks.com.

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