With a market cap of $13 billion, CF Industries Holdings, Inc. (CF) is a leading global manufacturer and distributor of nitrogen-based fertilizers and other agricultural and industrial products. Headquartered in Deerfield, Illinois, the company operates a network of production, storage, and distribution facilities across North America and the United Kingdom.
Companies worth $10 billion or more are generally described as “large-cap stocks,” CF Industries fits this bill perfectly. The company benefits from access to low-cost natural gas, a key input in nitrogen fertilizer production, which helps maintain its cost advantage. With a focus on sustainability, CF Industries is investing in clean energy initiatives, including low-carbon ammonia and hydrogen production, to align with the growing demand for decarbonization solutions in agriculture and industry.
However, the stock touched its 52-week high of $98.25 on Jan. 16 and is now trading 20.6% below that peak. It has dwindled 8% over the past three months, underperforming the Materials Select Sector SPDR Fund’s (XLB) 2% drop during the same time frame.
CF stock has dropped 8.9% over the past six months and 5.6% over the past 52 weeks, compared to XLB’s 10.6% dip in the past six months and 6.5% fall over the past year.
CF has been trading below its 200-day and 50-day moving averages since early last month, reflecting its recent downturn.
On Mar. 25, CF Industries dropped more than 2% as fertilizer stocks declined following the U.S. decision to restore Russia’s access to the global fertilizer export market. The move heightened competition in the sector, raising concerns about pricing pressure and potential impacts on North American producers like CF Industries.
In the competitive material sector, top rival The Mosaic Company (MOS) has outpaced with a 1.7% rise in the past six months, but its 14.2% drop over the past 52 weeks lags behind CF.
The consensus rating among the 16 analysts covering the CF stock is a “Hold.” Its mean price target of $90.94 represents a 16.6% premium to current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
