Beaconlight Capital LLC purchased a new position in shares of CF Industries Holdings, Inc. (NYSE:CF – Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 7,195 shares of the basic materials company’s stock, valued at approximately $934,000.
Other hedge funds have also recently modified their holdings of the company. Norges Bank purchased a new position in CF Industries during the fourth quarter worth about $193,657,000. Dimensional Fund Advisors LP increased its position in CF Industries by 37.6% during the 4th quarter. Dimensional Fund Advisors LP now owns 4,312,225 shares of the basic materials company’s stock worth $333,501,000 after purchasing an additional 1,178,516 shares during the period. Worldquant Millennium Advisors LLC acquired a new position in CF Industries during the 2nd quarter worth approximately $96,560,000. Arrowstreet Capital Limited Partnership raised its stake in shares of CF Industries by 203.7% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,088,286 shares of the basic materials company’s stock worth $141,303,000 after buying an additional 729,921 shares in the last quarter. Finally, Caisse de depot et placement du Quebec lifted its holdings in shares of CF Industries by 52.4% in the 3rd quarter. Caisse de depot et placement du Quebec now owns 1,775,106 shares of the basic materials company’s stock valued at $159,227,000 after buying an additional 610,259 shares during the period. 93.06% of the stock is owned by institutional investors and hedge funds.
CF Industries Stock Performance CF Industries stock opened at $125.20 on Friday. The stock has a fifty day moving average price of $114.25 and a 200 day moving average price of $110.94. CF Industries Holdings, Inc. has a 52 week low of $75.42 and a 52 week high of $141.96. The firm has a market capitalization of $19.23 billion, a P/E ratio of 11.25 and a beta of 0.40. The company has a current ratio of 3.54, a quick ratio of 3.15 and a debt-to-equity ratio of 0.39.
CF Industries Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Monday, August 31st. Stockholders of record on Friday, August 14th will be issued a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Friday, August 14th. This is an increase from CF Industries’s previous quarterly dividend of $0.50. CF Industries’s dividend payout ratio (DPR) is presently 17.97%.
Analysts Set New Price Targets CF has been the topic of a number of analyst reports. BNP Paribas Exane decreased their price target on CF Industries from $140.00 to $120.00 and set a “neutral” rating on the stock in a research note on Monday, June 15th. Weiss Ratings restated a “buy (b)” rating on shares of CF Industries in a research report on Monday, June 29th. JPMorgan Chase & Co. upped their price target on shares of CF Industries from $94.00 to $115.00 and gave the stock a “neutral” rating in a research note on Wednesday, June 3rd. Freedom Capital upgraded shares of CF Industries from a “hold” rating to a “strong-buy” rating in a report on Monday, May 18th. Finally, UBS Group reduced their price objective on shares of CF Industries from $140.00 to $130.00 in a research note on Friday, May 8th. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, ten have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $116.69.
Check Out Our Latest Stock Report on CF Industries
About CF Industries (Free Report)
CF Industries Holdings, Inc is a leading global manufacturer of hydrogen and nitrogen products for agricultural and industrial customers. The company specializes in the production of ammonia, granular urea, urea ammonium nitrate (UAN), nitric acid and ammonium nitrate, which serve as key inputs for fertilizer blends, industrial chemicals and other downstream applications.
Headquartered in Deerfield, Illinois, CF Industries operates production facilities and distribution terminals across North America and the United Kingdom.
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is CF Industries (CF - Free Report) . CF is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.87, which compares to its industry's average of 12.54. CF's Forward P/E has been as high as 16.16 and as low as 11.10, with a median of 14.29, all within the past year.
We also note that CF holds a PEG ratio of 0.39. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CF's PEG compares to its industry's average PEG of 0.78. Over the last 12 months, CF's PEG has been as high as 2.67 and as low as 0.30, with a median of 0.67.
Another notable valuation metric for CF is its P/B ratio of 1.84. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.40. Within the past 52 weeks, CF's P/B has been as high as 2.38 and as low as 1.59, with a median of 1.93.
Finally, investors should note that CF has a P/CF ratio of 6.29. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.60. Over the past year, CF's P/CF has been as high as 8.02 and as low as 5.19, with a median of 6.93.
Value investors will likely look at more than just these metrics, but the above data helps show that CF Industries is likely undervalued currently. And when considering the strength of its earnings outlook, CF sticks out as one of the market's strongest value stocks.
AIA Group Ltd purchased a new stake in shares of CF Industries Holdings, Inc. (NYSE:CF – Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 26,400 shares of the basic materials company’s stock, valued at approximately $3,428,000.
A number of other large investors have also bought and sold shares of CF. Hantz Financial Services Inc. lifted its holdings in CF Industries by 46.3% during the 4th quarter. Hantz Financial Services Inc. now owns 493 shares of the basic materials company’s stock worth $38,000 after purchasing an additional 156 shares in the last quarter. Eagle Bay Advisors LLC bought a new stake in shares of CF Industries during the 4th quarter worth $43,000. WPG Advisers LLC grew its position in CF Industries by 69.8% in the fourth quarter. WPG Advisers LLC now owns 552 shares of the basic materials company’s stock worth $43,000 after acquiring an additional 227 shares in the last quarter. MUFG Securities EMEA plc purchased a new position in CF Industries in the second quarter worth $44,000. Finally, MV Capital Management Inc. bought a new position in CF Industries in the fourth quarter valued at $52,000. 93.06% of the stock is owned by hedge funds and other institutional investors.
Analysts Set New Price Targets Several equities research analysts have issued reports on CF shares. The Goldman Sachs Group dropped their price target on CF Industries from $133.00 to $115.00 and set a “neutral” rating for the company in a research note on Tuesday, June 23rd. Morgan Stanley decreased their price objective on CF Industries from $135.00 to $115.00 and set an “equal weight” rating on the stock in a report on Tuesday, July 7th. Wall Street Zen downgraded CF Industries from a “buy” rating to a “hold” rating in a research report on Saturday. Berenberg Bank upped their target price on CF Industries from $86.00 to $106.00 and gave the stock a “hold” rating in a research note on Thursday, May 28th. Finally, Freedom Capital upgraded shares of CF Industries from a “hold” rating to a “strong-buy” rating in a research report on Monday, May 18th. Two analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, ten have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average target price of $116.62.
View Our Latest Stock Report on CF Industries
CF Industries Trading Down 0.2% Shares of CF opened at $121.17 on Monday. The stock has a market capitalization of $18.62 billion, a P/E ratio of 10.89 and a beta of 0.40. CF Industries Holdings, Inc. has a twelve month low of $75.42 and a twelve month high of $141.96. The company has a quick ratio of 3.15, a current ratio of 3.54 and a debt-to-equity ratio of 0.39. The firm has a fifty day simple moving average of $114.30 and a two-hundred day simple moving average of $109.51.
CF Industries Increases Dividend The firm also recently announced a quarterly dividend, which will be paid on Monday, August 31st. Investors of record on Friday, August 14th will be paid a $0.60 dividend. The ex-dividend date of this dividend is Friday, August 14th. This is a boost from CF Industries’s previous quarterly dividend of $0.50. This represents a $2.40 annualized dividend and a dividend yield of 2.0%. CF Industries’s payout ratio is 17.97%.
CF Industries Profile (Free Report)
CF Industries Holdings, Inc is a leading global manufacturer of hydrogen and nitrogen products for agricultural and industrial customers. The company specializes in the production of ammonia, granular urea, urea ammonium nitrate (UAN), nitric acid and ammonium nitrate, which serve as key inputs for fertilizer blends, industrial chemicals and other downstream applications.
Headquartered in Deerfield, Illinois, CF Industries operates production facilities and distribution terminals across North America and the United Kingdom.
Featured Articles Five stocks we like better than CF Industries Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit Shopify’s Quiet AI Strategy Could Be Its Biggest Advantage Yet Why These 3 Nuclear ETFs Are Getting a Fresh Look as AI Power Demand Rises 3 Aerospace Suppliers That Could Benefit as Aircraft Makers Face Bottlenecks Want to see what other hedge funds are holding CF? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for CF Industries Holdings, Inc. (NYSE:CF – Free Report).
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Bank of New York Mellon Corp decreased its holdings in shares of CF Industries Holdings, Inc. (NYSE:CF – Free Report) by 15.7% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,731,908 shares of the basic materials company’s stock after selling 323,729 shares during the period. Bank of New York Mellon Corp owned 1.13% of CF Industries worth $224,871,000 at the end of the most recent reporting period.
Several other large investors have also added to or reduced their stakes in CF. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of CF Industries by 3.1% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 17,500 shares of the basic materials company’s stock valued at $1,368,000 after acquiring an additional 518 shares in the last quarter. Jones Financial Companies Lllp increased its position in CF Industries by 161.1% in the 1st quarter. Jones Financial Companies Lllp now owns 11,870 shares of the basic materials company’s stock valued at $928,000 after buying an additional 7,324 shares in the last quarter. Woodline Partners LP increased its position in CF Industries by 40.7% in the 1st quarter. Woodline Partners LP now owns 14,703 shares of the basic materials company’s stock valued at $1,149,000 after buying an additional 4,252 shares in the last quarter. Focus Partners Wealth raised its stake in CF Industries by 21.8% during the 1st quarter. Focus Partners Wealth now owns 3,558 shares of the basic materials company’s stock worth $278,000 after buying an additional 638 shares during the period. Finally, Geneos Wealth Management Inc. boosted its holdings in CF Industries by 141.6% in the first quarter. Geneos Wealth Management Inc. now owns 790 shares of the basic materials company’s stock worth $62,000 after acquiring an additional 463 shares in the last quarter. Institutional investors and hedge funds own 93.06% of the company’s stock.
CF Industries Price Performance CF opened at $121.17 on Friday. CF Industries Holdings, Inc. has a 1 year low of $75.42 and a 1 year high of $141.96. The company has a debt-to-equity ratio of 0.39, a current ratio of 3.54 and a quick ratio of 3.15. The company has a market capitalization of $18.62 billion, a price-to-earnings ratio of 10.89 and a beta of 0.40. The firm’s fifty day moving average price is $114.30 and its two-hundred day moving average price is $109.29.
CF Industries Increases Dividend The company also recently declared a quarterly dividend, which will be paid on Monday, August 31st. Investors of record on Friday, August 14th will be issued a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a yield of 2.0%. This is a boost from CF Industries’s previous quarterly dividend of $0.50. The ex-dividend date is Friday, August 14th. CF Industries’s dividend payout ratio is presently 21.56%.
Analyst Upgrades and Downgrades CF has been the subject of a number of research reports. JPMorgan Chase & Co. raised their price objective on CF Industries from $94.00 to $115.00 and gave the company a “neutral” rating in a research note on Wednesday, June 3rd. BMO Capital Markets lowered their target price on CF Industries from $140.00 to $135.00 and set an “outperform” rating on the stock in a research report on Tuesday, June 30th. Freedom Capital upgraded CF Industries from a “hold” rating to a “strong-buy” rating in a report on Monday, May 18th. Canadian Imperial Bank of Commerce lifted their price target on shares of CF Industries from $118.00 to $128.00 and gave the company a “neutral” rating in a research report on Thursday, April 30th. Finally, Morgan Stanley decreased their price target on shares of CF Industries from $135.00 to $115.00 and set an “equal weight” rating for the company in a research note on Tuesday, July 7th. Two analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, ten have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, CF Industries currently has an average rating of “Hold” and an average price target of $116.62.
Check Out Our Latest Stock Analysis on CF Industries
CF Industries Profile (Free Report)
CF Industries Holdings, Inc is a leading global manufacturer of hydrogen and nitrogen products for agricultural and industrial customers. The company specializes in the production of ammonia, granular urea, urea ammonium nitrate (UAN), nitric acid and ammonium nitrate, which serve as key inputs for fertilizer blends, industrial chemicals and other downstream applications.
Headquartered in Deerfield, Illinois, CF Industries operates production facilities and distribution terminals across North America and the United Kingdom.
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Key Takeaways CF approved a 20% higher quarterly dividend of 60 cents per share, payable on Aug. 31, 2026. CF benefits from strong nitrogen demand, favorable pricing and a tight 2026 global market. CF returned $1.7 billion to shareholders in 2025 through dividends and buybacks, backed by robust FCF. CF Industries Holdings, Inc. (CF - Free Report) recently announced that its board has approved a quarterly cash dividend of 60 cents per share, representing a 20% increase from its previous quarterly dividend. The dividend will be paid on Aug. 31, 2026, to shareholders of record as of Aug. 14, 2026.
The higher dividend underscores management's confidence in the company's financial strength, cash flow generation and long-term earnings outlook. It also enhances shareholder returns and could improve the stock's attractiveness to income-oriented investors while signaling disciplined capital allocation.
CF Industries is benefiting from strong global demand for nitrogen fertilizers driven by healthy agricultural activity and improving industrial demand. Favorable farm economics and higher corn plantings in the United States are supporting nitrogen consumption, while demand in Brazil is expected to remain strong on increased corn acreage. In India, low inventories, reduced domestic production and supply disruptions due to the Iran war are expected to lift urea imports to 10-12 million metric tons in 2026, per CF’s estimates.
Per CF, the global nitrogen market is expected to remain tight in 2026 as strong demand is met with constrained supply. Geopolitical disruptions, limited natural gas availability and the Middle East conflict have tightened the global supply-demand balance. These market conditions helped drive a 19% year-over-year increase in first-quarter net sales through higher selling prices, and CF Industries is expected to continue benefiting from favorable nitrogen pricing.
CF Industries continues to enhance shareholder returns through strong cash generation and disciplined capital allocation. The company generated $1.79 billion in free cash flow in 2025, up 24% year over year, while net cash from operating activities increased 21% to $2.75 billion. It ended the first quarter with about $2 billion in cash, and its strong free cash flow conversion highlights the efficiency of its operations.
The company returned $1.7 billion to shareholders in 2025 through dividends and share repurchases, including $1.34 billion used to buy back 16.6 million shares. Since launching its current $2 billion buyback program in October 2025, it has repurchased 3.6 million shares for about $293 million.
Shares of CF are up 26.1% in the past year compared with the industry’s 51.5% decline.
Image Source: Zacks Investment Research
CF’s Zacks Rank & Other Key PicksCF currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the Basic Materials space include CSW Industrials, Inc. (CSW - Free Report) , Idaho Strategic Resources, Inc. (IDR - Free Report) and Southern Copper Corporation (SCCO - Free Report) . CSW, IDR and SCCO carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CSW’s current-year earnings stands at $12.52 per share, implying a 20.6% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 3.8%.
The Zacks Consensus Estimate for IDR’s current-year earnings is pegged at $1.52 per share, implying a 33.3% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 68.7%.
The Zacks Consensus Estimate for SCCO’s current-year earnings is pegged at $7.8 per share, indicating a 48.9% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 9.1%.
The Zacks Fertilizers industry is challenged by elevated costs of key raw materials, partly due to war-led disruptions, which have put pressure on the margins of industry players. Higher fertilizer prices and input cost inflation are also likely to result in growers reducing application rates, partly due to affordability issues, leading to weaker fertilizer demand.
However, increased fertilizer prices augur well for the companies in this space. Fertilizer players such as Nutrien Ltd., CF Industries Holdings, Inc. and Yara International ASA are worth a look, notwithstanding the near-term headwinds.
About the IndustryThe Zacks Fertilizers industry comprises producers, distributors and marketers of crop nutrients for the global agriculture industry. Companies in this space offer nutrients such as phosphates (including diammonium phosphate, monoammonium phosphate and phosphoric acid), potash and nitrogen (including urea, ammonia and urea ammonium nitrate) fertilizers. They also provide other nitrogen products to help farmers maximize crop yield.
Crop nutrients are essential to drive agricultural productivity and boost the natural fertility of the soil. Demand for these nutrients is being supported by the need to increase the production of grains to address rising food consumption globally. Moreover, the constant need of growers to nourish their crops, replenish nutrients in the soil following a harvest and boost yields to feed a growing global population drives the consumption of fertilizers.
What's Shaping the Future of the Fertilizers Industry?Elevated Input Costs a Concern:Increased prices of major raw materials pose a headwind to fertilizer companies. Prices of both sulfur and ammonia — key inputs for the production of phosphate — remain elevated. Supply disruptions from Russia amid the war with Ukraine, aggravated by the Middle East conflict, contributed to the rise in prices of both sulfur and ammonia. Plant shutdowns and maintenance also led to a tight supply of these raw materials, which, coupled with strong demand, pushed up their prices.
Rising natural gas prices, a key feedstock for nitrogen fertilizer, are also a concern. Natural gas prices have shot up in Europe and Asia due to constrained supply availability. Higher raw material costs have led to an increase in production costs. As such, fertilizer makers are likely to face short-term margin pressure associated with higher input costs.
Reduced Affordability May Dampen Fertilizer Demand: Growers face challenges from still-depressed crop commodity prices and elevated production costs triggered by increased fertilizer prices, higher input and other costs, including fuel. Escalating costs are likely to result in farmers reducing fertilizer applications or switching to less fertilizer-intensive crops, leading to softer demand. Farm income is also projected to decline this year.
The U.S. Department of Agriculture expects net farm income to decline 0.7% year over year to $153.4 billion this year. The same is forecast to decline 2.6% after adjusting for inflation. Reduced farm income may lead to a cutback in fertilizer application. Meanwhile, prices of major crops such as corn, soybean and wheat have improved this year from the lows witnessed in recent years, partly due to the Middle East tensions, but they remain well below the multi-year highs reached in 2022.
Higher Fertilizer Prices Augur Well: Prices of phosphate, potash and nitrogen remained depressed in 2023 and 2024 amid oversupply in the market and weak demand, weighing on the profitability of fertilizer companies. On a positive note, strong demand and supply tightness led to an uptick in fertilizer prices in 2025, with phosphate prices seeing a notable increase. Prices were driven by solid agricultural demand in major markets, China’s export restrictions, U.S. tariffs and higher costs of inputs. The upward momentum in fertilizer prices continues this year. Higher prices are expected to drive top-line and margin expansion for companies in this space over the near term.
Zacks Industry Rank Reflects Downbeat ProspectsThe Zacks Fertilizers industry is part of the broader Zacks Basic Materials sector. It carries a Zacks Industry Rank #207, which places it in the bottom 16% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates a bleak near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock market performance and valuation picture.
Industry Underperforms S&P 500The Zacks Fertilizers industry has underperformed the Zacks S&P 500 composite and the broader Zacks Basic Materials sector over the past year.
The industry has lost 52.2% over this period against the S&P 500’s rise of 24.2% and the broader sector’s increase of 20.7%.
Industry's Current ValuationOn the basis of the trailing 12-month enterprise value-to EBITDA (EV/EBITDA) ratio, which is a commonly used multiple for valuing fertilizer stocks, the industry is currently trading at 8.43X compared with the S&P 500’s 18.75X and the sector’s 12.8X.
In the past five years, the industry has traded as high as 15.54X and as low as 4.55X, with a median of 9.4X.
3 Fertilizer Stocks to Keep a Close Eye OnYara International:Norway-based Yara International is a leading global producer and supplier of mineral fertilizers. It has industry-leading experience in ammonia development, production, operations and distribution. A favorable nitrogen demand environment bodes well for YARIY. Cost reductions and actions to strengthen the balance sheet are expected to boost the company’s profitability and cash flows. YARIY also remains focused on rewarding its shareholders by leveraging strong cash flows.
Yara International currently has a Zacks Rank #1 (Strong Buy). It has an expected earnings growth rate of 61.1% for 2026. The Zacks Consensus Estimate for 2026 earnings has moved 6.9% higher over the past 60 days. The company beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed it once. In this timeframe, it delivered an earnings surprise of 63.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutrien:Canada-based Nutrien is a leading provider of crop inputs and services. The company is benefiting from healthy demand for crop nutrients, backed by supportive global agriculture markets. NTR is seeing strong potash sales volumes and increasing production from its low-cost North American operations to meet rising demand. NTR is also gaining from acquisitions, cost efficiency and increased adoption of its digital platform. The company also continues to expand its footprint in Brazil through acquisitions. Cost and operational efficiency initiatives are also expected to aid its performance. The company has announced several strategic actions to reduce its controllable costs and boost free cash flow.
Nutrien has expected earnings growth of 26.5% for 2026. The consensus estimate for 2026 earnings has been revised 3.2% upward over the past 60 days. Nutrien currently carries a Zacks Rank #3 (Hold).
CF Industries:Illinois-based CF Industries is a leading global manufacturer of nitrogen and hydrogen products for fertilizer, clean energy, emissions reduction and other industrial applications. It is gaining from higher nitrogen fertilizer demand in the major markets such as North America, Brazil and India. CF is seeing higher nitrogen demand for industrial uses in North America. Higher nitrogen prices are also contributing to a boost in CF Industries’ revenues. CF remains committed to boosting shareholders’ value by leveraging strong cash flows. The company is also taking action to de-leverage its balance sheet.
CF Industries, currently with a Zacks Rank #3, has an expected earnings growth rate of 84% for 2026. The consensus estimate for 2026 earnings has been revised 23.8% upward over the past 60 days. CF’s earnings beat the Zacks Consensus Estimate in each of the last four quarters at an average of 11.4%.
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The Zacks Fertilizers industry is challenged by elevated costs of key raw materials, partly due to war-led disruptions, which have put pressure on the margins of industry players. Higher fertilizer prices and input cost inflation are also likely to result in growers reducing application rates, partly due to affordability issues, leading to weaker fertilizer demand.
However, increased fertilizer prices augur well for the companies in this space. Fertilizer players such as Nutrien Ltd. (NTR - Free Report) , CF Industries Holdings, Inc. (CF - Free Report) and Yara International ASA (YARIY - Free Report) are worth a look, notwithstanding the near-term headwinds.
About the Industry The Zacks Fertilizers industry comprises producers, distributors and marketers of crop nutrients for the global agriculture industry. Companies in this space offer nutrients such as phosphates (including diammonium phosphate, monoammonium phosphate and phosphoric acid), potash and nitrogen (including urea, ammonia and urea ammonium nitrate) fertilizers. They also provide other nitrogen products to help farmers maximize crop yield. Crop nutrients are essential to drive agricultural productivity and boost the natural fertility of the soil. Demand for these nutrients is being supported by the need to increase the production of grains to address rising food consumption globally. Moreover, the constant need of growers to nourish their crops, replenish nutrients in the soil following a harvest and boost yields to feed a growing global population drives the consumption of fertilizers.
What's Shaping the Future of the Fertilizers Industry? Elevated Input Costs a Concern: Increased prices of major raw materials pose a headwind to fertilizer companies. Prices of both sulfur and ammonia — key inputs for the production of phosphate — remain elevated. Supply disruptions from Russia amid the war with Ukraine, aggravated by the Middle East conflict, contributed to the rise in prices of both sulfur and ammonia. Plant shutdowns and maintenance also led to a tight supply of these raw materials, which, coupled with strong demand, pushed up their prices. Rising natural gas prices, a key feedstock for nitrogen fertilizer, are also a concern. Natural gas prices have shot up in Europe and Asia due to constrained supply availability. Higher raw material costs have led to an increase in production costs. As such, fertilizer makers are likely to face short-term margin pressure associated with higher input costs.
Reduced Affordability May Dampen Fertilizer Demand: Growers face challenges from still-depressed crop commodity prices and elevated production costs triggered by increased fertilizer prices, higher input and other costs, including fuel. Escalating costs are likely to result in farmers reducing fertilizer applications or switching to less fertilizer-intensive crops, leading to softer demand. Farm income is also projected to decline this year. The U.S. Department of Agriculture expects net farm income to decline 0.7% year over year to $153.4 billion this year. The same is forecast to decline 2.6% after adjusting for inflation. Reduced farm income may lead to a cutback in fertilizer application. Meanwhile, prices of major crops such as corn, soybean and wheat have improved this year from the lows witnessed in recent years, partly due to the Middle East tensions, but they remain well below the multi-year highs reached in 2022.
Higher Fertilizer Prices Augur Well: Prices of phosphate, potash and nitrogen remained depressed in 2023 and 2024 amid oversupply in the market and weak demand, weighing on the profitability of fertilizer companies. On a positive note, strong demand and supply tightness led to an uptick in fertilizer prices in 2025, with phosphate prices seeing a notable increase. Prices were driven by solid agricultural demand in major markets, China’s export restrictions, U.S. tariffs and higher costs of inputs. The upward momentum in fertilizer prices continues this year. Higher prices are expected to drive top-line and margin expansion for companies in this space over the near term.
Zacks Industry Rank Reflects Downbeat Prospects The Zacks Fertilizers industry is part of the broader Zacks Basic Materials sector. It carries a Zacks Industry Rank #207, which places it in the bottom 16% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates a bleak near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock market performance and valuation picture.
Industry Underperforms S&P 500 The Zacks Fertilizers industry has underperformed the Zacks S&P 500 composite and the broader Zacks Basic Materials sector over the past year.
The industry has lost 52.2% over this period against the S&P 500’s rise of 24.2% and the broader sector’s increase of 20.7%.
One-Year Price Performance
Industry's Current Valuation On the basis of the trailing 12-month enterprise value-to EBITDA (EV/EBITDA) ratio, which is a commonly used multiple for valuing fertilizer stocks, the industry is currently trading at 8.43X compared with the S&P 500’s 18.75X and the sector’s 12.8X.
In the past five years, the industry has traded as high as 15.54X and as low as 4.55X, with a median of 9.4X, as the chart below shows.
Enterprise Value/EBITDA (EV/EBITDA) Ratio
Enterprise Value/EBITDA (EV/EBITDA) Ratio
3 Fertilizer Stocks to Keep a Close Eye on Yara International: Norway-based Yara International is a leading global producer and supplier of mineral fertilizers. It has industry-leading experience in ammonia development, production, operations and distribution. A favorable nitrogen demand environment bodes well for YARIY. Cost reductions and actions to strengthen the balance sheet are expected to boost the company’s profitability and cash flows. YARIY also remains focused on rewarding its shareholders by leveraging strong cash flows.
Yara International currently has a Zacks Rank #1 (Strong Buy). It has an expected earnings growth rate of 61.1% for 2026. The Zacks Consensus Estimate for 2026 earnings has moved 6.9% higher over the past 60 days. The company beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed it once. In this timeframe, it delivered an earnings surprise of 63.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price and Consensus: YARIY
Nutrien: Canada-based Nutrien is a leading provider of crop inputs and services. The company is benefiting from healthy demand for crop nutrients, backed by supportive global agriculture markets. NTR is seeing strong potash sales volumes and increasing production from its low-cost North American operations to meet rising demand. NTR is also gaining from acquisitions, cost efficiency and increased adoption of its digital platform. The company also continues to expand its footprint in Brazil through acquisitions. Cost and operational efficiency initiatives are also expected to aid its performance. The company has announced several strategic actions to reduce its controllable costs and boost free cash flow.
Nutrien has expected earnings growth of 26.5% for 2026. The consensus estimate for 2026 earnings has been revised 3.2% upward over the past 60 days. Nutrien currently carries a Zacks Rank #3 (Hold).
Price and Consensus: NTR
CF Industries: Illinois-based CF Industries is a leading global manufacturer of nitrogen and hydrogen products for fertilizer, clean energy, emissions reduction and other industrial applications. It is gaining from higher nitrogen fertilizer demand in the major markets such as North America, Brazil and India. CF is seeing higher nitrogen demand for industrial uses in North America. Higher nitrogen prices are also contributing to a boost in CF Industries’ revenues. CF remains committed to boosting shareholders’ value by leveraging strong cash flows. The company is also taking action to de-leverage its balance sheet.
CF Industries, currently with a Zacks Rank #3, has an expected earnings growth rate of 84% for 2026. The consensus estimate for 2026 earnings has been revised 23.8% upward over the past 60 days. CF’s earnings beat the Zacks Consensus Estimate in each of the last four quarters at an average of 11.4%.
Key Takeaways CF announced a quarterly dividend of $0.60 per share, after raising payouts three times in five years.LEVI declared a $0.16 per-share dividend payable Aug. 5 and increased its dividend six times in five years. PNC announced a $2.00 per-share dividend payable Aug. 5 and has raised its dividend six times in five years. Wall Street has remained volatile since mid-June, with tech stocks suffering amid growing concerns about the sustainability of AI-focused stocks. Also, renewed geopolitical tensions have once again started dampening investors' confidence.
Amid the ongoing uncertainty, conservative investors seeking reliable income while preserving their capital may find dividend-paying stocks an attractive option. These stocks generate steady income through regular dividend distributions and can provide a cushion against market volatility.
Three such stocks are: CF Industries Holdings, Inc. (CF - Free Report) , Levi Strauss & Co. (LEVI - Free Report) and The PNC Financial Services Group, Inc. (PNC - Free Report) .
Markets Turn VolatileGeopolitical tensions escalated this week after President Donald Trump said on Wednesday that he is no longer interested in negotiations with Iran. Both the United States and Iran have since launched strikes, with investors now fearing that the Middle East crisis could escalate once again.
Oil prices, which had eased over the past few weeks after the two warring nations announced a ceasefire and reached a temporary memorandum of understanding in mid-June to end all hostilities. However, attacks and counterattacks over the past two days have renewed fears that tensions could escalate in the coming days. Oil prices have also surged substantially over the past two days.
Markets were already volatile over the past two weeks, triggered by a massive sell-off in AI-related tech stocks, as concerns have been growing over their profitability and sustainability. Also, higher inflation has already made the Federal Reserve consider an interest rate hike this year.
The ongoing geopolitical tensions could add more fuel to the fire and keep markets volatile for a longer period.
3 Stocks That Recently Announced Dividend HikesCF Industries HoldingsCF Industries Holdings, Inc. is one of the largest manufacturers and distributors of nitrogenous fertilizer and other nitrogen products globally. CF’s principal nitrogenous fertilizer products are ammonia, granular urea, urea ammonium nitrate solution (UAN) and ammonium nitrate (AN). CF Industries Holdings has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On July 8, CF Industries Holdings announced that its shareholders would receive a dividend of $0.60 a share on Aug. 31. CF has a dividend yield of 1.71%. Over the past five years, CF Industries Holdings has increased its dividend three times, and its payout ratio presently sits at 13% of earnings. Check CF Industries Holdings’ dividend history here.
Levi Strauss & Co. Levi Strauss & Co. designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's, Dockers, Signature by Levi Strauss & Co. and Denizen brands. LEVI’s products are sold through chain retailers, department stores, online sites, brand-dedicated retail stores and shop-in-shops. Levi Strauss & Co has a Zacks Rank #3.
On July 8, Levi Strauss & Co declared that its shareholders would receive a dividend of $0.16 a share on Aug. 5. LEVI has a dividend yield of 2.30%. Over the past five years, Levi Strauss & Co has increased its dividend six times, and its payout ratio presently sits at 40% of earnings. Check Levi Strauss & Co’s dividend history here.
The PNC Financial Services Group, Inc.The PNC Financial Services Group, Inc. provides consumer and business banking services. The company's principal subsidiary is PNC Bank. PNC has a Zacks Rank #3.
On July 6, The PNC Financial Services Group announced that its shareholders would receive a dividend of $2 a share on Aug. 5. PNC has a dividend yield of 2.76%. Over the past five years, The PNC Financial Services Group has increased its dividend six times, and its payout ratio presently sits at 39% of earnings. Check The PNC Financial Services Group’s dividend history here.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: CF Industries (CF - Free Report) CF Industries Holdings, Inc., headquartered in Deerfield, IL, is one of the largest manufacturers and distributors of nitrogenous fertilizer and other nitrogen products globally. The company’s principal nitrogenous fertilizer products are ammonia, granular urea, urea ammonium nitrate solution (UAN) and ammonium nitrate (AN).
CF is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Basic Materials stock. CF has a Momentum Style Score of A, and shares are up 7.1% over the past four weeks.
For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $3.68 to $17.24 per share. CF boasts an average earnings surprise of +11.4%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CF should be on investors' short list.
NORTHBROOK, Ill.--(BUSINESS WIRE)--CF Industries Holdings, Inc. (NYSE: CF) today reported that its board of directors has declared a $0.60 per share dividend on its common stock, a 20% increase compared to its prior quarterly dividend. The dividend will be payable on August 31, 2026, to stockholders of record as of August 14, 2026. Additionally, the Company confirmed that it will report its second quarter and first half 2026 results after the market close on Wednesday, August 5, 2026. The compa.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is CF Industries (CF - Free Report) . CF is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A.
We also note that CF holds a PEG ratio of 0.39. 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. CF's industry currently sports an average PEG of 0.71. CF's PEG has been as high as 2.67 and as low as 0.30, with a median of 0.67, all within the past year.
Another valuation metric that we should highlight is CF's P/B ratio of 1.84. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.23. Over the past 12 months, CF's P/B has been as high as 2.38 and as low as 1.59, with a median of 1.93.
Finally, investors will want to recognize that CF has a P/CF ratio of 6.29. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CF's P/CF compares to its industry's average P/CF of 8.89. Over the past 52 weeks, CF's P/CF has been as high as 8.02 and as low as 5.19, with a median of 6.93.
These are only a few of the key metrics included in CF Industries's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CF looks like an impressive value stock at the moment.
The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has CF Industries (CF - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.
CF Industries is one of 275 individual stocks in the Basic Materials sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. CF Industries is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for CF's full-year earnings has moved 59.6% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, CF has gained about 48.6% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 6.8% on average. This shows that CF Industries is outperforming its peers so far this year.
Another Basic Materials stock, which has outperformed the sector so far this year, is Methanex (MEOH - Free Report) . The stock has returned 15.7% year-to-date.
The consensus estimate for Methanex's current year EPS has increased 123.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, CF Industries is a member of the Fertilizers industry, which includes 6 individual companies and currently sits at #73 in the Zacks Industry Rank. This group has gained an average of 9.8% so far this year, so CF is performing better in this area.
Methanex, however, belongs to the Chemical - Diversified industry. Currently, this 31-stock industry is ranked #112. The industry has moved +17.9% so far this year.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to CF Industries and Methanex as they could maintain their solid performance.
Here are three stocks with buy rank and strong value characteristics for investors to consider today, July 8th:
ZTO Express Cayman (ZTO - Free Report) : This company, which is a leading player in the field of express delivery in China, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.8% over the last 60 days.
ZTO Express Cayman has a price-to-earnings ratio (P/E) of 11.31 compared with 31.40 for the industry. The company possesses a Value Score of A.
CF Industries (CF - Free Report) : This company, which is one of the largest manufacturers and distributors of nitrogenous fertilizer and other nitrogen products globally, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 28.2% over the last 60 days.
CF Industries has a price-to-earnings ratio (P/E) of 6.66 compared with 13.40 for the industry. The company possesses a Value Score of A.
CION Investment Corporation (CION - Free Report) : This externally managed, non-diversified closed-end investment company, with an objective is to generate current income and modest capital appreciation by primarily investing in senior secured debt, first lien, second lien and unitranche loans of U.S. middle-market companies, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 1.9% over the last 60 days.
CION Investment Corporation’s has a price-to-earnings ratio (P/E) of 6.07 compared with 8.40 for the industry. The company possesses a Value Score of A.
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated here.
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
CF Industries (CF - Free Report) : This company, which is one of the largest manufacturers and distributors of nitrogenous fertilizer and other nitrogen products globally, has seen the Zacks Consensus Estimate for its current year earnings increasing 28.2% over the last 60 days.
LATAM Airlines Group (LTM - Free Report) : This company, which provide domestic services in Brazil, Chile, Peru, Colombia and Ecuador, as well as regional flights and long-haul operations, has seen the Zacks Consensus Estimate for its current year earnings increasing 19.4% over the last 60 day.
Innodata Inc (INOD - Free Report) : This global data engineering company, which helps the world's leading technology companies and enterprises drive Generative AI and broader AI innovation, has seen the Zacks Consensus Estimate for its current year earnings increasing 7.6% over the last 60 days.
Callaway Golf Company (CALY - Free Report) : This company, which is a premium golf equipment, gear and apparel company with a portfolio of brands, including Callaway Golf, Odyssey, TravisMathew and OGIO, has seen the Zacks Consensus Estimate for its current year earnings increasing 7.1% over the last 60 days.
Cimpress (CMPR - Free Report) : This company, which is an online supplier of high-quality graphic design services and customized printed products to small businesses and consumers, has seen the Zacks Consensus Estimate for its currentyear earnings increasing 5.3% over the last 60 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: CF Industries (CF - Free Report) CF Industries Holdings, Inc., headquartered in Deerfield, IL, is one of the largest manufacturers and distributors of nitrogenous fertilizer and other nitrogen products globally. The company’s principal nitrogenous fertilizer products are ammonia, granular urea, urea ammonium nitrate solution (UAN) and ammonium nitrate (AN).
CF is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. CF has a Growth Style Score of B, forecasting year-over-year earnings growth of 83.1% for the current fiscal year.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $3.77 to $17.16 per share. CF boasts an average earnings surprise of +11.4%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CF should be on investors' short list.
Key Takeaways CF Industries is gaining from strong global nitrogen demand across key markets and higher fertilizer prices.CF expects tight nitrogen markets in 2026 as demand, geopolitics and supply constraints support pricing.CF faces margin pressure as higher natural gas costs raise production expenses and cost of sales. CF Industries Holdings, Inc. (CF - Free Report) gains on strong nitrogen fertilizer demand in major markets, higher nitrogen prices and its operational strength amid headwinds from higher natural gas costs.
The CF stock has gained 15.4% in the past year compared with the Zacks Fertilizers industry’s 54.2% decline.
Image Source: Zacks Investment Research
Let’s find out why CF stock is worth retaining at the moment.
Healthy Nitrogen Demand, Higher Prices Aid CF StockCF Industries is capitalizing on the growing global demand for nitrogen fertilizers, driven by strong agricultural activity. Global nitrogen requirement is expected to remain strong in the near future due to recovering industrial demand and farmer economics.
High levels of corn-planted acres in the United States should drive the demand for nitrogen. Demand in North America is expected to be fueled by favorable farm economics. Demand for urea is likely to remain healthy in Brazil in 2026, driven by higher corn plantings. In India, demand is expected to be driven by low inventory levels, reduced domestic production and undelivered volumes due to the Iran war. The company expects India’s urea imports to rise year over year in 2026, potentially reaching 10-12 million metric tons.
CF, on its first-quarter call, said the global nitrogen market remains tight in 2026 due to strong demand, geopolitical disruptions and constrained natural gas availability. The Middle East conflict has further tightened the global nitrogen supply-demand balance.
Higher nitrogen prices have also contributed to a boost in CF Industries’ revenues. In the first quarter, net sales rose roughly 19% year over year on pricing strength. The average selling prices for the company’s core products increased compared to the prior year, driven by supply disruptions and strong global nitrogen demand. Looking ahead, CF should continue to benefit from favorable pricing trends.
Higher Natural Gas Costs Ail CF IndustriesCF remains hamstrung by headwinds from higher costs stemming from an uptick in natural gas prices. Higher prices of natural gas, a key feedstock for nitrogen fertilizer, have resulted in increased production costs for CF. It saw a notable rise in natural gas costs during 2025. The average cost of natural gas increased to $3.31 per MMBtu (million metric British thermal unit) in 2025 from $2.40 per MMBtu a year ago.
The same for first-quarter 2026 increased to $4.57 per MMBtu from $3.68 per MMBtu a year ago, leading to a higher cost of sales. Natural gas prices have shot up in Europe and Asia due to constrained supply availability. Higher gas costs are expected to weigh on CF’s margins.
CF’s Zacks Rank & Other Key PicksCF currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the Basic Materials space are L.B. Foster Company (FSTR - Free Report) , Albemarle Corporation (ALB - Free Report) and LyondellBasell Industries N.V. (LYB - Free Report) . FSTR, ALB and LYB carry a Zacks Rank #1 (Strong Buy), each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for L.B. Foster’s current-year earnings is pegged at $1.74 per share, implying a 152.2% year-over-year increase. The Zacks Consensus Estimate for FSTR’s current-year earnings has been revised 12.3% higher over the past 60 days.
The consensus estimate for Albemarle’s current-year earnings is pegged at $12.98 per share, indicating a 1,743.2% year-over-year increase. ALB’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 54.1%.
The Zacks Consensus Estimate for LyondellBasell’s current-year earnings stands at $9.22 per share, implying a 442.2% year-over-year increase. The Zacks Consensus Estimate for LYB’s current-year earnings has been revised 69.5% higher over the past 60 days.
Key Takeaways CF benefits from healthy nitrogen fertilizer demand in key markets and higher pricing.CF's natural gas cost rose to $4.57/MMBtu in Q1, increasing the cost of sales.EPS estimates for CF's 2026 and 2027 have trended higher over the past 60 days. CF Industries Holdings, Inc. (CF - Free Report) is benefiting from healthy nitrogen fertilizer demand in major markets and higher prices. It, however, remains hamstrung by headwinds from higher costs stemming from an uptick in natural gas prices.
Higher prices of natural gas, a key feedstock for nitrogen fertilizer, have resulted in increased production costs for CF. It saw a notable rise in natural gas costs during 2025. The average cost of natural gas increased to $3.31 per MMBtu (million metric British thermal unit) in 2025 from $2.40 per MMBtu a year ago.
The same for first-quarter 2026 increased to $4.57 per MMBtu from $3.68 per MMBtu a year ago, leading to a higher cost of sales. Natural gas prices have shot up in Europe and Asia due to constrained supply availability. Higher gas costs are expected to weigh on CF’s margins.
Among its peers, Nutrien Ltd. (NTR - Free Report) remains exposed to a volatile input cost environment amid supply tightness. Nutrien uses sulfur, ammonia and natural gas as key inputs. NTR saw higher sulfur input costs in the first quarter, leading to a higher cost of goods sold per ton in the phosphate businesses, hurting margins. It expects further pressure on phosphate margins in the second quarter, resulting from higher sulfur and ammonia costs.
The Mosaic Company (MOS - Free Report) is also buffeted by higher costs of inputs. Mosaic uses sulfur and ammonia as key inputs for the production of phosphate. It witnessed a sharp increase in sulfur price since late 2025, which weighed on phosphate margins in the first quarter. MOS expects an additional impact of the sulfur price inflation on the cost of goods sold in the second quarter.
CF’s Price Performance, Valuation & EstimatesCF Industries has gained 11.7% in the past year compared with the Zacks Fertilizers industry’s decline of 5.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, CF is currently trading at a forward 12-month earnings multiple of 7.15, a 34.1% discount relative to the industry average of 10.85X. It carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CF’s 2026 and 2027 earnings implies a year-over-year rise of 83.1% and a decline of 34.9%, respectively. The EPS estimates for 2026 and 2027 have been trending higher over the past 60 days.
First-in-human Phase 1 study in 56 healthy participants demonstrated KIT2014’s safety and tolerabilityKIT2014 is being developed as an inhalation therapy for respiratory diseases including chronic obstructive pulmonary disease (COPD), non-CF bronchiectasis (NCFB) and cystic fibrosis (CF)KIT2014’s unique mode of action improves respiratory symptoms by promoting bronchodilation and reducing lung inflammation
TURIN, Italy, June 19, 2026 (GLOBE NEWSWIRE) -- Kither Biotech Pty Ltd and Kither Biotech srl, a clinical-stage biopharmaceutical group of companies developing innovative therapies for respiratory diseases, today announced the successful completion of their Phase 1 clinical study of KIT2014 in healthy participants.
“We are pleased to report the successful completion of this first-in-human Phase 1 study with KIT2014, a significant milestone for Kither Biotech,” said Dr. Dimitrios Goundis, CEO of Kither Biotech. “The study results demonstrate KIT2014’s favourable safety and tolerability profile. The unique ability of KIT2014 to increase cAMP in different airway cell types offers the potential for multiple therapeutic benefits, including bronchodilation and anti-inflammatory effects. We look forward to advancing the clinical development of KIT2014, to assess its therapeutic potential in patients with respiratory diseases including COPD, NCFB and CF.”
“We are delighted that this first-in-human study has successfully demonstrated that inhaled KIT2014 was safe and well tolerated across all dose levels evaluated, with no measurable systemic exposure,” said Anita van der Meer, Director of Kither Biotech Pty Ltd. “These findings support the continued clinical development of KIT2014 and provide a strong foundation for advancing into patient studies in COPD, where we aim to further explore its unique multimodal mechanism of action and potential to address important unmet medical needs.”
KIT2014 is a novel cell-permeable peptide delivered via inhalation, which is designed to address multiple pathological pathways common to a number of major respiratory diseases. The drug, which consists of 42 amino acids, acts to promote bronchodilation and reduce lung inflammation. It does this through balanced dual inhibition of the enzymes phosphodiesterase 3 and 4 (PDE3/4), which increases local concentrations of the key signalling molecule cAMP (cyclic adenosine monophosphate). KIT2014 is being developed for a number of respiratory diseases including COPD, NCFB and CF.
Key findings of the Phase 1 study were that:
Treatment with KIT2014 at doses ranging from 0.1 mg to 2 mg daily for up to 7 days was safe and well tolerated.Blood plasma levels of KIT2014 were below the limit of detection at all dose levels, both in the single ascending dose (SAD) and multiple ascending dose (MAD) parts of the study, indicating direct administration to the lungs results in very low systemic exposure. This Phase 1 clinical trial was a double-blind, randomised, placebo-controlled, two-part dose escalation study (single ascending dose and multiple ascending dose), conducted in 56 healthy participants. The primary objective was to evaluate the safety and tolerability of KIT2014. The secondary objective was to evaluate blood plasma pharmacokinetics.
For more information, visit clinicaltrials.gov NCT06659757.
Kither Biotech’s leadership team will be attending the BIO International Convention in San Diego, US, from 22–25 June 2026. The team will be available to meet investors, pharmaceutical and biotech partners, research analysts, and potential collaborators. To schedule a meeting, please contact: [email protected].
Optimum Strategic Communications
Stephen Adams / Aoife Minihan / Ben Cowe
Tel: +44 203 821 6420
Email: [email protected]
Notes for editors
About Kither Biotech
Kither Biotech is a clinical-stage biopharmaceutical company focused on developing innovative therapies for respiratory diseases. The company’s lead program, KIT2014, represents a novel approach to treating respiratory conditions by targeting multiple respiratory disease pathways, simultaneously. Kither Biotech has successfully raised $26 million to date from leading life sciences investors including Claris Ventures, 2Invest, 3B Future Health, CDP Venture Capital, Italian Angels for Growth, Club degli Investitori, Ersel and ACE Venture. For more information, please visit www.kitherbiotech.com and follow us on LinkedIn.
About KIT2014
KIT2014 is a first-in-class inhaled peptide therapy that targets multiple pathways critical to respiratory disease pathophysiology. By equally inhibiting both phosphodiesterase 3 and 4 (PDE3/4) and enhancing cyclic adenosine monophosphate (cAMP) levels in airway cells, KIT2014 improves airway flow via relaxation of airway smooth muscle and bronchodilation, reduces epithelial and neutrophil-driven inflammation, and increases CFTR gating to improve chloride ion transport and airway mucus hydration and clearance. Inhaled delivery allows direct targeting of the lungs while minimising systemic exposure, potentially offering an improved safety profile compared to similar therapies with greater systemic exposure and side effects.
About KIT2014’s target indications
KIT2014 has the potential to address significant unmet needs across respiratory diseases including COPD, NCFB and CF.
Chronic obstructive pulmonary disease (COPD) affects more than 400 million people globally, and continues to be the third largest cause of death worldwide. It is an irreversible airflow-limiting disease primarily caused by smoking and environmental exposures, characterised by chronic respiratory symptoms, and progressive decline in lung function. The underlying pathology is driven by inflammation leading to small airway remodelling, and parenchymal destruction.
Non-CF bronchiectasis (NCFB) impacts approximately 500,000 people in the US and a similar number in Europe, with limited treatment options available. It is a chronic airway disease characterised by permanent dilation of the bronchi, leading to cough, sputum production, and recurrent infective exacerbations. The disease creates a vicious cycle of mucus accumulation, infection and neutrophilic inflammation.
Cystic fibrosis (CF) affects approximately 130,000 people worldwide and, despite advances in CFTR modulators, many patients continue to experience persistent inflammation and recurrent infections. It is a life-limiting genetic disease caused by mutations in the CFTR gene, leading to defective chloride ion transport in multiple organ systems. In the lungs, this results in thick, sticky mucus buildup promoting chronic bacterial infections, persistent inflammation and decline in lung function.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
CF Industries (CF - Free Report) is a stock many investors are watching right now. CF is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
CF is also sporting a PEG ratio of 0.39. 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 has an average PEG of 0.69 right now. CF's PEG has been as high as 2.67 and as low as 0.30, with a median of 0.67, all within the past year.
Another valuation metric that we should highlight is CF's P/B ratio of 1.84. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.21. Within the past 52 weeks, CF's P/B has been as high as 2.38 and as low as 1.59, with a median of 1.93.
Finally, our model also underscores that CF has a P/CF ratio of 6.29. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CF's current P/CF looks attractive when compared to its industry's average P/CF of 8.81. Over the past 52 weeks, CF's P/CF has been as high as 8.02 and as low as 5.19, with a median of 6.93.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CF Industries is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CF feels like a great value stock at the moment.
Key Takeaways CF and NTR benefit from strong agricultural markets, tight supplies and higher fertilizer pricing.CF benefits from tight global nitrogen markets, strong pricing and strong cash flows.Nutrien is boosting potash output, expanding through acquisitions and advancing cost reductions. CF Industries Holdings, Inc. (CF - Free Report) and Nutrien Ltd. (NTR - Free Report) are two of the biggest players in the fertilizer space. The underlying strength of the agricultural market and attractive farm economics are spurring demand for fertilizers globally. Farmer economics remain favorable in most global growing regions due to strong crop demand and affordable inputs.
Supportive farmer economics, improved affordability and low inventory levels are driving potash demand globally. The phosphate market is also benefiting from low producer and channel inventories. Demand for nitrogen fertilizer remains strong in major markets such as North America, India and Brazil. Strong demand and supply tightness have also led to an uptick in fertilizer prices.
Let’s dive deep and closely compare the fundamentals of these two major fertilizer producers to determine which one is a better investment option in the current environment.
The Case for CF IndustriesCF Industries is capitalizing on the growing global demand for nitrogen fertilizers, driven by strong agricultural activity. Global nitrogen requirement is expected to remain strong in the near future due to recovering industrial demand and farmer economics.
High levels of corn-planted acres in the United States should drive demand for nitrogen. Demand in North America is expected to be fueled by favorable farm economics. In Brazil, demand for urea is likely to remain healthy in 2026, driven by higher corn plantings. In India, low inventory levels, reduced domestic production and undelivered volumes due to the Iran war are likely to lead to a greater requirement. The company expects India’s urea imports to rise year over year in 2026, potentially reaching 10-12 million metric tons.
CF, on its first-quarter call, said that the global nitrogen market will remain tight in 2026 due to strong demand, geopolitical disruptions and constrained natural gas availability. The Middle East conflict has further tightened the global nitrogen supply-demand balance.
Higher nitrogen prices have also contributed to a boost in CF Industries’ revenues. In the first quarter, net sales rose roughly 19% year over year on pricing strength. The average selling prices for the company’s core products increased from the prior year, driven by supply disruptions and strong global nitrogen demand. Looking ahead, CF should continue to benefit from favorable pricing trends.
CF Industries continues to focus on enhancing shareholder value by utilizing its strong cash flow, thanks to strong operational performance, strategic execution and supportive nitrogen industry fundamentals. For full-year 2025, net cash from operating activities was $2.75 billion, while free cash flow was $1.79 billion, up roughly 21% and 24% year over year, respectively. The company’s cash and cash equivalents were roughly $2 billion at the end of the first quarter. Net cash provided by operating activities was $496 million for the quarter.
The company is efficiently converting adjusted EBITDA to free cash flow. Its full-year 2025 free cash flow to adjusted EBITDA conversion rate was 62%, outpacing sector averages. The same for the first quarter was 51%.
CF returned $1.7 billion to its shareholders in 2025. It repurchased 16.6 million shares for $1.34 billion during 2025. Since the commencement of its current $2 billion buyback program in October 2025, CF Industries has bought back 3.6 million shares for around $293 million. CF offers a dividend yield of roughly 1.9% at the current stock price. It has a payout ratio of 19%. CF has a five-year annualized dividend growth rate of 12.9%.
The Case for Nutrien 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. Tight inventories are expected to support crop commodity prices.
NTR saw record potash sales volumes in the first quarter of 2026, driven by low inventory levels and favorable potash affordability, especially in key offshore markets. The company maintained its global potash shipment forecast of 74-77 million tons for 2026 and sees relatively tight potash fundamentals through the year. It is also increasing production from its low-cost North American operations to meet rising demand.
Nutrien 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. The company expects to utilize part of its free cash flow for incremental growth investments, including tuck-in acquisitions in the retail business.
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. It has announced several strategic actions to reduce its controllable costs and boost free cash flow. It surpassed the $200 million annual cost savings target for 2025, achieving it a year earlier than its initial target. It expects sustained cost-reduction efforts across all geographies to aid margin improvement in 2026.
NTR has a strong balance sheet, enabling it to finance its strategic growth investment, pay down debt and drive shareholder value. It returned $409 million to its shareholders in the first quarter through dividends and share repurchases. Nutrien offers a dividend yield of roughly 3.4% at the current stock price. It has a payout ratio of 48% and a five-year annualized dividend growth rate of 4.1%.
NTR, however, remains exposed to a volatile input cost environment amid supply tightness. Nutrien uses sulfur, ammonia and natural gas as key inputs. Supply disruptions from Russia amid the war with Ukraine, exacerbated by the Middle East conflict, contributed to the rise in input prices. Plant shutdowns and maintenance also resulted in a tight supply of these inputs, which, coupled with strong demand, pushed up their prices. Tight global sulfur supply, higher benchmark sulfur prices and ongoing supply-chain constraints continued to increase phosphate production costs.
The company saw higher sulfur input costs in the first quarter, leading to a higher cost of goods sold per ton in the phosphate businesses, hurting margins. It expects further pressure on phosphate margins in the second quarter, resulting from higher sulfur and ammonia costs.
Price Performance and Valuation of CF & NTRThe CF stock is up 33.1% year to date, while NTR has gained 1.9% compared with the Zacks Fertilizers industry’s rise of 8%.
Image Source: Zacks Investment Research
CF is currently trading at a forward 12-month earnings multiple of 7.26. This represents a roughly 34.8% discount when stacked up with the industry average of 11.14X.
Image Source: Zacks Investment Research
NTR is currently trading at a forward 12-month earnings multiple of 11.17, above CF and the industry.
Image Source: Zacks Investment Research
How the Zacks Consensus Estimate Compares for CF & NTRThe Zacks Consensus Estimate for CF’s 2026 sales implies a year-over-year rise of 22.8%. The same for EPS suggests a 83.1% year-over-year increase. The EPS estimates for 2026 have been trending higher over the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for NTR’s 2026 sales and EPS implies a year-over-year rise of 8% and 31.4%, respectively. The EPS estimates for 2026 have been trending northward over the past 60 days.
Image Source: Zacks Investment Research
CF or NTR: Which Stock Holds the Edge?Both CF and Nutrien are benefiting from strong global demand, thanks to the favorable agricultural conditions and supportive farm economics. Higher fertilizer prices are also expected to aid their performance. Both remain committed to boosting shareholder returns. CF appears to have an edge over NTR due to its more attractive valuation and higher dividend growth rate. In addition, CF’s higher earnings growth projections suggest that it may offer better investment prospects in the current market environment.
CF currently carries a Zacks Rank #2 (Buy), while NTR has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CF Industries is rated Buy, reflecting ongoing undervaluation despite recent gains driven by Middle East conflict disruptions. CF's Q1 outperformance stemmed from higher fertilizer prices due to curtailed Middle East supply, but this boost is likely temporary. Strong balance sheet, $2.04 billion in cash and equivalents, and substantial buyback authorization position CF for resilience and capital returns.
Insider Selling: MarketAxess (NASDAQ:MKTX) General Counsel Sells 100 Shares of StockMarketBeat
MarketAxess Holdings Inc. (NASDAQ:MKTX - Get Free Report) General Counsel Scott Pintoff sold 100 shares of the stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $116.03, for a total transaction of $11,603.00. Following the transaction, the general counsel owned 11,786 shares in the company, valued at approximately $1,367,529.58. The trade was a 0.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink.
NASDAQ:MKTX
Read Insider Selling: MarketAxess (NASDAQ:MKTX) General Counsel Sells 100 Shares of Stock
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On May 11, 2026, CF Industries Holdings Inc (CF) shares rose 8.2% today, bringing the current price to $124.48. The stock has experienced a 52-week range betwee
CF Industries (CF - Free Report) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.
Analysts' growing optimism on the earnings prospects of this fertilizer maker is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For CF Industries, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsThe company is expected to earn $4.03 per share for the current quarter, which represents a year-over-year change of +70.0%.
Over the last 30 days, the Zacks Consensus Estimate for CF has increased 29.83% because two estimates have moved higher compared to no negative revisions.
Current-Year Estimate RevisionsFor the full year, the company is expected to earn $13.90 per share, representing a year-over-year change of +48.4%.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for CF. Over the past month, four estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 39.79%.
Favorable Zacks RankOur research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineInvestors have been betting on CF because of its solid estimate revisions, as evident from the stock's 9.6% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.
Volatility has a way of creeping up when we least expect it.
The market has been humming along to the earnings and AI narrative over the past month, with stocks hovering near all-time highs. But the latest set of inflation reports could act as a thorn in the rally’s side.
Rate-cut hopes in 2026 dwindled following hotter-than-expected inflation data, with many stocks experiencing heavy selling pressure as a result. Inflation is the biggest risk in this environment amid the Strait of Hormuz blockade, which continues to pressure global energy prices.
The Fed remains stuck as it simply can’t justify lowering interest rates with prices on the rise. In fact, markets are pricing in that the central bank will hold rates steady for most of 2026. There’s even a nearly 30% chance of a rate hike by December.
The volatility (VIX) index appears to be turning back up in mid-May. Bulls would like to avoid a breakout in the VIX index, as a rise in volatility tends to coincide with lower stock prices. Early in Thursday’s trading, small-caps (as evidenced by the Russell 2000 index) were lagging on inflation worries.
CPI Shows Inflation Jumps to 3-Year HighTuesday’s release of the consumer price index (CPI) showed prices rose 0.6% in April over the previous month and 3.8% year-over-year. The annual figure was a big jump from the 3.3% pace we saw in March and marked the highest level in nearly 3 years.
On a “core” basis, which strips out volatile food and energy components, the CPI rose 0.4% on the month and 2.8% over the last year, the latter of which was also above estimates.
Earlier this week, Chicago Fed president Austan Goolsbee said that not only is inflation unable to make substantial progress, but it’s also going in the opposite direction. “It’s going the wrong way, not just in oil-related things and not just in tariff-related things,” Goolsbee said. “Now you’ve seen drifting upward of services inflation, and for me, that’s the part that I’m nervous about.”
Yesterday’s release of the producer price report only added to concerns. US producer prices increased much more than expected last month, according to the Bureau of Labor Statistics. Wholesale prices rose 1.4% over the prior month, far above the anticipated increase of 0.5%. On an annual basis, producer prices shot up 6% in April, well above projections of 4.8%.
Stocks to Watch Amid Inflation Revival Fertilizer stocks have been quietly showing strength this year as inflation rises. The Zacks Fertilizers industry currently ranks in the top 11% out of approximately 250 Zacks Ranked Industries. It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market.
Quantitative research studies have shown that roughly half of a stock's price movement can be attributed to its industry group. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
Companies in this group are relatively undervalued and are expected to experience above-average earnings growth, signifying a powerful combination that should lead to higher prices ahead:
Image Source: Zacks Investment Research
CF Industries (CF - Free Report) is a component of this group and a Zacks Rank #1 (Strong Buy). The company is the world's largest producer of ammonia, specializing in manufacturing hydrogen and nitrogen products for fertilizer, clean energy, and emissions control. Shares have steadily outperformed this year, advancing more than 63%:
Image Source: StockCharts
Another leading stock in this industry is Intrepid Potash (IPI - Free Report) , a Zacks Rank #2 (Buy). The company is the largest U.S. producer of potassium chloride, acting as a key supplier for agricultural fertilizer, animal feed, and industrial applications.
IPI stock continues to trend upward, climbing more than 63% year-to-date:
Image Source: StockCharts
Fertilizer stocks often rise during periods of high inflation because they are closely tied to agricultural commodity prices and energy costs, which typically surge during inflationary environments. Both companies recently beat their respective first-quarter earnings estimates and are witnessing positive revisions in the quarters ahead.
Bottom LineThe month of April will go down as the 62nd consecutive month inflation came in above the Fed's 2% target. At some point, the word "transitory" stops being an appropriate description to use. In a nutshell, the Fed has a real problem.
Still, that hasn’t stopped stocks from forging higher amid an AI spending boom and earnings acceleration. But we may be near a critical turning point as inflation continues to rise. Make sure to take advantage of all that Zacks has to offer to uncover leading stocks like CF and IPI.
Disclosure: The author may a hold a related interest in the aforementioned securities.
As a global fertilizer shortage looms and the Strait of Hormuz faces an unprecedented blockade, one North American giant is stepping in to fill the void.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at CF Industries (CF - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. CF Industries currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if CF is a promising momentum pick, let's examine some Momentum Style elements to see if this fertilizer maker holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For CF, shares are up 8.89% over the past week while the Zacks Fertilizers industry is up 4.73% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 8% compares favorably with the industry's 2.88% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of CF Industries have increased 31.19% over the past quarter, and have gained 42.96% in the last year. On the other hand, the S&P 500 has only moved 7.88% and 25.61%, respectively.
Investors should also take note of CF's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now CF is averaging 3,098,102 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with CF.
Over the past two months, 4 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost CF's consensus estimate, increasing from $8.99 to $15.67 in the past 60 days. Looking at the next fiscal year, 4 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that CF is a #1 (Strong Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep CF Industries on your short list.
CF Industries benefits from a structurally tight nitrogen fertilizer market, driven by geopolitical disruptions and limited new capacity until 2030. CF's North American asset base and low-cost position provide a competitive advantage as global supply remains constrained, supporting elevated pricing. With natural gas feedstock costs down 11% y/y and robust production, Q2 is poised for strong results, with EPS projected at $5.83 versus street at $5.61.
Key Takeaways CF shares jumped 46% in six months, outperforming the fertilizer industry's decline.CF expects strong global nitrogen demand amid tight supply and geopolitical disruptions.CF trades at an 8.64X forward P/E, well below the fertilizer industry average. CF Industries Holdings, Inc.’s (CF - Free Report) shares have popped 46% over the past six months, outperforming the Zacks Fertilizers industry’s decline of 41.5%. It is benefiting from strong nitrogen fertilizer demand in major markets, higher nitrogen prices and its operational strength.
We are positive about CF’s prospects and believe that the time is right for you to add the stock to the portfolio, as it looks promising and is poised to carry the momentum ahead.
Image Source: Zacks Investment Research
Let's see what makes CF stock an attractive investment option at the moment.
Positive Analyst Sentiment for CF StockEarnings estimates for CF have been going up over the past 60 days. The Zacks Consensus Estimate for 2026 has increased by 74.3%. The consensus estimate for second-quarter 2026 has also been revised 79.7% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Image Source: Zacks Investment Research
CF’s Strong Growth ProspectsThe Zacks Consensus Estimate for CF’s 2026 earnings is pegged at $15.67, suggesting a 67.2% increase from the previous year’s tally. Earnings are projected to increase by 97.9% in second-quarter 2026.
Superior Return on Equity (ROE) for CF IndustriesROE is a measure of a company’s efficiency in utilizing shareholders’ funds. ROE for the trailing 12 months for CF Industries is 20.9%, above the industry’s level of 10%.
Image Source: Zacks Investment Research
CF’s Valuation Looks AttractiveCF is currently trading at a forward price/earnings of 8.64X, a roughly 31.8% discount relative to the industry average of 12.66X. CF currently has a Value Score of B.
Image Source: Zacks Investment Research
Healthy Nitrogen Demand and Higher Prices Aid CFCF Industries is capitalizing on the growing global demand for nitrogen fertilizers, driven by strong agricultural activity. Global nitrogen requirement is expected to remain strong in the near future due to recovering industrial demand and farmer economics.
High levels of corn-planted acres in the United States should drive the demand for nitrogen. Demand in North America is expected to be fueled by favorable farm economics. Demand for urea is likely to remain healthy in Brazil in 2026, driven by higher corn plantings. In India, demand is expected to be driven by low inventory levels, reduced domestic production and undelivered volumes due to the Iran war. The company expects India’s urea imports to rise year over year in 2026, potentially reaching 10-12 million metric tons.
CF, on its first-quarter call, said the global nitrogen market remains tight in 2026 due to strong demand, geopolitical disruptions and constrained natural gas availability. The Middle East conflict has further tightened the global nitrogen supply-demand balance.
Higher nitrogen prices have also contributed to a boost in CF Industries’ revenues. In the first quarter, net sales rose roughly 19% year over year on pricing strength. The average selling prices for the company’s core products increased compared to the prior year, driven by supply disruptions and strong global nitrogen demand. Looking ahead, CF should continue to benefit from favorable pricing trends.
CF’s Zacks Rank & Key PicksCF currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks in the Basic Materials space are Nucor Corporation (NUE - Free Report) , L.B. Foster Company (FSTR - Free Report) and Albemarle Corporation (ALB - Free Report) , each carrying a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Nucor’s current-year earnings stands at $14.84 per share, implying an 92.5% year-over-year increase. NUE’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with an average surprise of 8.1%.
The consensus estimate for L.B. Foster’s current-year earnings is pegged at $1.74 per share, implying a 152.2% year-over-year increase. The Zacks Consensus Estimate for FSTR’s current-year earnings has been revised 12.3% higher over the past 60 days.
The Zacks Consensus Estimate for Albemarle’s current-year earnings is pegged at $12.39 per share, indicating a 1,668.4% year-over-year increase. ALB’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 54.1%.
Key Takeaways CF generated $496M in operating cash flow in Q1, backed by strong operational execution.CF returned $1.7B to its shareholders in 2025, including $1.34B in share repurchases.CF's 2025 free cash flow rose 24% year over year to $1.79B amid strong nitrogen demand. CF Industries Holdings, Inc. (CF - Free Report) generated healthy cash flows in the first quarter, backed by strong operational performance, strategic execution and supportive nitrogen industry fundamentals. Its net cash provided by operating activities was $496 million for the quarter. Its cash and cash equivalents were roughly $2 billion at the end of the quarter.
Notably, CF generated net cash from operating activities of $2.75 billion and free cash flow of $1.79 billion in 2025, up roughly 21% and 24% year over year, respectively.
CF’s substantial cash flows and strong balance sheet enable it to finance its strategic growth investment, pay down debt and drive shareholder value. CF returned $1.7 billion to its shareholders in 2025. It repurchased 16.6 million shares for $1.34 billion during 2025. Since the commencement of its current $2 billion buyback program in October 2025, CF Industries has bought back 3.6 million shares for around $293 million.
The company is efficiently converting adjusted EBITDA to free cash flow. Its full-year 2025 free cash flow to adjusted EBITDA conversion rate was 62%, outpacing sector averages. The same for the first quarter was 51%.
The company is expected to continue generating significant free cash flow, leveraging its high-margin business, strategic execution and favorable global nitrogen industry dynamics, allowing it to invest in growth opportunities and enhance returns to its shareholders.
Among its peers, Nutrien Ltd. (NTR - Free Report) generated solid cash flows in the first quarter, thanks to higher fertilizer benchmark pricing, increased retail earnings and record potash sales volumes. NTR’s cash provided in operating activities was $851 million in the first quarter. Nutrien generated an operating cash flow of $4 billion for full-year 2025.
The Mosaic Company’s (MOS - Free Report) cash flow from operating activities was $104.2 million in the first quarter, up from $42.9 million a year ago, aided by improved working capital dynamics. Mosaic’s free cash flow was negative $252.6 million, consistent with typical first-quarter seasonality. MOS generated an operating cash flow of $825 million in 2025.
CF’s Price Performance, Valuation & EstimatesCF Industries has gained 22.7% in the past year compared with the Zacks Fertilizers industry’s rise of 4.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, CF is currently trading at a forward 12-month earnings multiple of 7.71, a 36.8% discount relative to the industry average of 12.21X. It carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CF’s 2026 and 2027 earnings implies a year-over-year rise of 87.5% and a decline of 38.9%, respectively. The EPS estimates for 2026 and 2027 have been trending higher over the past 60 days.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is CF Industries (CF - Free Report) . CF is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 11.87, while its industry has an average P/E of 12.26. Over the past 52 weeks, CF's Forward P/E has been as high as 16.16 and as low as 11.10, with a median of 14.29.
Investors should also note that CF holds a PEG ratio of 0.39. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CF's industry has an average PEG of 0.76 right now. Within the past year, CF's PEG has been as high as 2.67 and as low as 0.30, with a median of 0.67.
We should also highlight that CF has a P/B ratio of 1.84. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CF's current P/B looks attractive when compared to its industry's average P/B of 2.41. CF's P/B has been as high as 2.38 and as low as 1.59, with a median of 1.93, over the past year.
Finally, investors will want to recognize that CF has a P/CF ratio of 6.29. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CF's P/CF compares to its industry's average P/CF of 9.61. CF's P/CF has been as high as 8.02 and as low as 5.19, with a median of 6.93, all within the past year.
Investors could also keep in mind Yara International ASA (YARIY - Free Report) , another Fertilizers stock with a Zacks Rank of #2 (Buy) and Value grade of A.
Furthermore, Yara International ASA holds a P/B ratio of 1.15 and its industry's price-to-book ratio is 2.41. YARIY's P/B has been as high as 1.36, as low as 0.87, with a median of 1.08 over the past 12 months.
These are only a few of the key metrics included in CF Industries and Yara International ASA strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CF and YARIY look like an impressive value stock at the moment.