NTR Stock Hits 52-Week High: What's Driving Its Performance?

Shares of Nutrien Ltd. NTR scaled a new 52-week high of $60.84 before retracing to close the session at $60.30. 

The company’s shares have gained 7.9% in a year compared with the industry’s growth of 16.9%.

Nutrien currently has a market capitalization of roughly $29.4 billion and a Zacks Rank #3 (Hold).

Let’s take a look at the factors that are driving NTR stock.

What’s Aiding Nutrien Stock?

Nutrien is well-positioned to capitalize on the increasing demand for fertilizers, supported by the robust global agricultural markets. The company is experiencing strong fertilizer demand across its key markets. Anticipated tight inventories are likely to sustain elevated crop commodity prices into 2025.

The global demand for potash is expected to rise, driven by favorable grower economics, enhanced affordability and low inventory levels. Similarly, the phosphate market is benefiting from heightened global demand, coupled with low inventories, among producers and distributors. Nitrogen fertilizer demand remains solid in major markets, with global requirements propelled by consumption in North America, India and Brazil. Additionally, a revival in industrial nitrogen demand is contributing positively. Nutrien anticipates an expansion in U.S. corn acreage in 2025 and foresees robust demand for crop inputs in the first half of the year.

The company is also poised to benefit from its acquisition strategy and the growing adoption of its digital platform. Nutrien continues to broaden its presence in Brazil through acquisitions and plans to pursue targeted opportunities within its core markets. A portion of its free cash flow is earmarked for incremental growth investments, including strategic acquisitions in retail in 2025.

Operational efficiency and cost-reduction initiatives are expected to further enhance the company's performance. Nutrien remains committed to lowering production costs in its potash operations. The company has announced several strategic measures aimed at reducing controllable expenses and increasing free cash flow. Accelerated efforts in operational efficiency and cost savings are projected to yield approximately $200 million in total savings in 2025.

Earnings estimates for Nutrien have been going up over the past month. The Zacks Consensus Estimate for 2025 earnings has been revised up by 6.2% over the same time frame. The same for the second quarter has been revised 3% upward.

Stocks to Consider

Better-ranked stocks in the basic materials space are Carpenter Technology Corporation CRS, Alamos Gold Inc. AGI and Hawkins, Inc. HWKN

Carpenter Technology currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 11.1%. The company's shares have soared 110% in the past year. 

The Zacks Consensus Estimate for Alamos Gold's current-year earnings is pegged at $1.29 per share. AGI, sporting a Zacks Rank of 1, surpassed the Zacks Consensus Estimate in two of the trailing four quarters, while missing twice, with an average earnings surprise of 1.4%. The company's shares have rallied 58.1% in the past year.

Hawkins, which currently carries a Zacks Rank #2 (Buy), beat the consensus estimate in one of the trailing four quarters, while missing thrice. In this time frame, it has delivered an earnings surprise of roughly 8.2%, on average. The company's shares have rallied 43.6% in the past year.



 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research