Headquartered in Northbrook, Illinois, CF Industries Holdings, Inc. (CF) is a global manufacturer and distributor of agricultural fertilizers with a market cap of $14.58 billion. Specializing in nitrogen-based products, CF plays a critical role in enhancing crop yields and supporting food production worldwide. The company operates an extensive network of production and distribution facilities, serving a diverse customer base that includes farmers, cooperatives, and industrial consumers, ensuring reliable supply and innovative solutions for agricultural needs.
Shares of CF Industries have underperformed the broader market considerably over the past year. CF has gained 3.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 24.9%. Also, in 2024, the stock is up marginally, compared to the SPX’s 16.2% rise on a YTD basis.
Narrowing the focus, CF's underperformance looks less pronounced this year when measured against the iShares U.S. Basic Materials ETF (IYM). The exchange-traded fund has gained 2.1% on a YTD Basis.
On Aug. 7, CF reported its Q2 results. Its adjusted EPS of $2.30 exceeded analysts’ estimate of $1.80. The company’s revenue came in at $1.57 billion, which fell short of Wall Street estimates of $1.58 billion. Shares of CF closed up 8.5% the day following the earnings were released.
For the current fiscal year, ending in December, analysts expect CF’s EPS to decline 30.8% year over year to $5.56 on a diluted basis. The company's earnings surprise history is mixed. It missed the consensus estimate in three of the last four quarters while beating the forecast on another occasion.
Among the 14 analysts covering CF stock, the consensus rating is a “Moderate Buy.” That’s based on four “Strong Buy” ratings, one “Moderate Buy,” eight “Holds,” and one “Strong Sell.”
On Aug. 9, Andrew Wong, CFA from RBC Capital, maintained a “Buy” rating on CF Industries, with a price target of $95, which indicates a 19.1% upside from the current levels.
The mean price target of $82.83 represents a 3.8% premium to CF’s current price levels. The Street-high price target of $100 suggests an upside potential of 25.3%.
On the date of publication, Rashmi Kumari 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.
