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CF Industries (CF) Gains As Market Dips: What You Should Know

CF Industries (CF) closed the most recent trading day at $85.39, moving +0.9% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.76%. At the same time, the Dow lost 0.76%, and the tech-heavy Nasdaq lost 10.92%.

Coming into today, shares of the fertilizer maker had lost 9.52% in the past month. In that same time, the Basic Materials sector gained 7.22%, while the S&P 500 gained 2.18%.

CF Industries will be looking to display strength as it nears its next earnings release. In that report, analysts expect CF Industries to post earnings of $4.13 per share. This would mark year-over-year growth of 11.32%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.83 billion, up 11.37% from the year-ago period.

Investors should also note any recent changes to analyst estimates for CF Industries. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 9.13% lower. CF Industries currently has a Zacks Rank of #3 (Hold).

Digging into valuation, CF Industries currently has a Forward P/E ratio of 6.17. Its industry sports an average Forward P/E of 6.28, so we one might conclude that CF Industries is trading at a discount comparatively.

Meanwhile, CF's PEG ratio is currently 1.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CF's industry had an average PEG ratio of 0.83 as of yesterday's close.

The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 232, which puts it in the bottom 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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CF Industries Holdings, Inc. (CF) : Free Stock Analysis Report

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