4 Top Fertilizer Stocks To Check Out In The Stock Market Today
It’s no surprise that the conflict in Ukraine has had a significant impact on fertilizer stocks in the stock market this year. Eastern Europe is an important wheat belt and a large exporter of fertilizer. As a result of the conflict, has made wheat prices vulnerable. Simply put, the Ukraine-Russia war has caused a hike in the prices for items like fertilizer, and wheat. Coincidentally, the United States is a large importer of both commodities. For the uninitiated, fertilizer stocks are a type of investment that allows an investor to buy shares in companies that manufacture fertilizer products.
With that, fertilizer stocks have been outperforming the overall market so far this year. For example, let’s take a look at Bunge Limited (NYSE: BG). Shares of the BG stock are up over 8% year-to-date versus the S&P 500 still being down roughly 13% during the same period.
Additionally, fertilizer stocks offer exposure to an important sector of the agriculture industry and can be a way to profit from the growing global demand for food. Fertilizer companies often have strong relationships with farmers and can benefit from advances in agricultural technology. Moreover, fertilizer stocks can be volatile but offer the potential for high returns. For investors looking for exposure to the agriculture industry, here are four fertilizer stocks to watch in the stock market today.
Good Fertilizer Stocks To Invest [Or Sell] In Right Now
- CF Industries Holdings Inc. (NYSE: CF)
- Nutrien Ltd. (NYSE: NTR)
- The Mosaic Company (NYSE: MOS)
- CVR Partners LP (NYSE: UAN)
CF Industries Holdings (NYSE: CF)
CF Industries Holdings, Inc. is an American multinational corporation and one of the world’s largest manufacturers of nitrogen fertilizers. In detail, CF Industries operates nitrogen fertilizer plants in the United States, Canada, the United Kingdom, and the Netherlands. CF Industries manufactures and sells a range of nitrogen-based fertilizers, including ammonia, urea, and urea ammonium nitrate.
Moving along, earlier this month CF announced a beat for its second quarter 2022 financial results. In detail, the company recorded earnings per share of $6.19, with revenue of $3.4 billion for Q2 2022. For context, analysts’ consensus earnings estimate was $6.06 per share on revenue of $3.6 billion. Additionally, CF was able to increase revenue by 113.4% during the same period the previous year.
Tony Will, President & CEO at CF Industries Holdings commented, “The CF Industries team delivered a strong operational performance and leveraged our manufacturing and logistics flexibility to drive outstanding results in the first half of 2022, despite weather-related challenges during the North American planting and fertilizer application season.” Moreover, year-to-date shares of CF stock are up over 59%. On Tuesday afternoon, CF stock is currently trading at $112.65 per share.
Nutrien Ltd. (NYSE: NTR)
Nutrien Ltd. (NTR) is a Canadian-based company that produces and distributes crop nutrients, including potash, nitrogen, and phosphate products. The company has operations in North and South America, Europe, Australia, and Asia. The company is the world’s largest provider of crop nutrients. Just this month, the company reported a miss for its second quarter of 2022 financial results.
In detail, NTR posted second-quarter earnings per share of $5.90, while revenue came in at $15.0 billion. Wall Street analysts consensus estimates were earnings of $5.90 per share on revenue of $15.0 billion. Furthermore, the company notched in a 48.6% increase in revenue on a year-over-year basis. Moreover, Nutrien provided updated guidance for 2022 earnings. Specifically, the company reported it projects 2022 earnings in the range of $15.80 to $17.80 per share. Previously, NTR reported guidance of $16.20 to $18.70 per share.
Aside from that, in August, the company’s board of directors announced they have recently appointed Ken Seitz as the new President & Chief Executive Officer. In the company’s latest earnings release, Mr. Seitz commented in his letter to shareholders, “We expect supply challenges across global energy, agriculture and fertilizer markets to persist well beyond 2022. The strength of our projected cash flow provides an opportunity to accelerate high-return strategic growth initiatives and return significant capital to shareholders. We intend on completing our 10 percent share repurchase program in 2022, increasing the total amount of capital returned to shareholders to approximately $6 billion during the year.” Given all of this, will you be adding NTR to your list of fertilizer stocks to watch?
The Mosaic Company (NYSE: MOS)
Mosaic Company (The) (MOS) is a global producer and marketer of concentrated phosphate and potash crop nutrients. For starters, Mosaic is the world’s largest combined producer and distributor of phosphate-based crop nutrients, serving both the agricultural retail market as well as the industrial segment. Mosaic products are essential in meeting the global demand for food, fuel, fibre, and infrastructure. At the beginning of the month, Mosaic announced its second quarter 2022 results.
Diving in, the company reported revenue of $5.4 billion, along with earnings per share of $3.64. In addition, MOS posted a 9.1% increase in revenue during the same period, in 2021. Joc O’Rourke, President and CEO commented in his letter to shareholders, “Mosaic’s second quarter results demonstrate the strength of the business,” he added, “We are expanding production to help meet global demand and returning significant capital to shareholders. We expect strong fundamentals will continue for the rest of the year and into 2023.”
Year-to-date shares of MOS stock have increased by over 50% while closing Wednesday’s trading session up another 6% at $60.69 per share. Given the momentum around fertilizer stocks, do you think MOS stock is worth watching today?
CVR Partners LP (NYSE: UAN)
CVR Partners LP is a nitrogen fertilizer manufacturer based in the United States. In brief, CVR Partners LP manufactures and sells two primary products: urea ammonium nitrate (UAN) and ammonia. UAN is a nitrogen-based fertilizer used in agriculture to improve crop yields. The company operates through two segments: CVR Nitrogen Fertilizers and CVR Energy. CVR Nitrogen Fertilizers segment consists of the company’s nitrogen fertilizer business, which includes the manufacture and sale of UAN and ammonia. On the other hand, their CVR Energy segment includes the company’s petroleum coke gasification business, which produces fuel-grade syngas for power generation and industrial uses.
The company’s CEO Mark Pytosh had this to say in their release to shareholders, “CVR Partners achieved solid operating results for the second quarter of 2022, driven by strong global fertilizer industry conditions. While Spring weather presented a challenge, planted grain acres were in line with USDA estimates. We also are pleased to announce a cash distribution of $10.05 per common unit for the 2022 second quarter.”
Aside from that, shares of UAN stock closed Wednesday’s trading session up by 5.45% at $131.70 per share. Meanwhile, year-to-date UAN stock has gained over 54%. With that being said, is UAN stock a buy right now?