NTR - Agricultural Chemical Stocks Offer Investors Big Opportunities For Gains

(NewsDirect)

AgriculturalChemical Stocks offer investors long-term upside as key stocks in thesector offer exciting 2023 guidance outlooks. They are successfullybattling headwinds from worldwide logistics, geo-political issues andheightened raw material costs. These select Companies are institutingnew operating efficiencies, cost-cutting strategies and planningexpansion into higher growth markets.

These stocks are diamonds in the roughattracting investors with higher dividends, improved multi-year fiscalperformance and some are offering attractive share buybackprograms.

Thepressure is on to grow crops more efficiently to feed everyoneglobally. The world’s population number is approaching eight billionthis year. Farmers need to apply agricultural chemicals to fertilizersto improve crop yield and prevent phosphorus and nitrogen runoff andevaporation.

Thelingering war in Ukraine has disrupted the global food chain. Butmanagement of several agricultural chemical stocks predict the marketwill reassert itself within the next two harvest cycles. The resultfor investors is a jump in the global agricultural chemicals market toan estimated $292 billion by 2030, researchers Statista and NextMove Strategy Consulting say.

As an undervalued stock industry, this sector issoaring with growth opportunities.

Zacks: Agricultural Chemical Stocks Bank OnStrategic Measures

Among the sector's most promising stocks for investors are Flexible Solutions International (NYSE: FSI), CF IndustriesHoldings, Inc. (NYSE: CF), Nutrien Ltd. (NYSE: NTR) and The MosaicCompany (NYSE: MOS) . Analyst Zacks tells investors thatsome of the stocks in the Agricultural Chemicals sector are worthconsidering ‘for your portfolio’.

Here are some notables:

Zacks Sees FSI AsAggressive In Exploring For New Opportunities

Flexible SolutionsInternational (NYSE: FSI) offers investors who are willing to takea little more risk within the agricultural chemicals sector a specialopportunity. FSI is a developer and manufacturer of biodegradablepolymers for oil extraction, detergent ingredients, and watertreatment, as well as crop nutrient availability chemistry. Analyst Zacks sees it as a Company, particularly its NanoChem Division, asaggressive in exploring for new opportunities in applications such asdetergent, water treatment, oil field extraction and agriculture togrow sales and net income.

FSI’s net profit was $3.4 million in 2021,16%higher than its $2.9 million in 2020. FSI stock is trading at a PEratio (TTM) of 9.84.

FSI’s volume expanded to $45.7 million in 2022 from $34.4million in 2021, a 33% jump. In 2020, FSI’s volume was $31.4million, 10% higher than the prior year.

• "Considering this, as well as the strength of its earningsoutlook, FSI feels like a great value stock right now,” concludesanalyst firm Z acks . Investor Place lists FSI as one ofits ‘hyper-growth stocks with 10x potential in 2023.” A SeekingAlpha analyst considers FSI stock a ‘buy,’ based on ananalysis of multiples and growth over the past five years.

• Complete financial results for 2022 will be available on March31, 2023 concurrent with SEC filings. A conference call will be heldon the next business day, Monday, April 3, 2023.

One of FSI’s goals isto feed the world’s growing population more efficiently. It is doingso profitably and reporting annual sales growth. It is a environmentaltechnology company.

The NanoChem Solutions, Inc. Division of FSI, with proprietaryagricultural products EX-10, Sun Savr 30 and Sun 27, are specialtychemicals that successfully commercialize technology. They mitigatenitrogen and phosphorus runoff and evaporation. This means farmers candeliver more efficient production and improved crop yields.

CF IndustriesHoldings, Inc. Eyes ‘Strong Cash Generation’ In Future

• CF IndustriesHoldings, Inc. (NYSE: CF) reported full year 2022 performance netearnings at $3.35 billion on net sales for the full year of $11.19billion. Adjusted EBITDA was $5.880 billion. In Q4, CF repurchasedsome 2.2 million of its shares for $223 million. Tony Will, presidentand CEO of the Company, said, at CF “We believe that the globalnitrogen supply-demand balance and global energy cost structure willcontinue to present attractive margin opportunities for ourcost-advantaged network.”

• As a result, Will predicted ‘strong cashgeneration’ in the years ahead and anticipates seeing strong demandfor its low-carbon ammonia. He said ‘substantial capital’ would bereturned to shareholders. Global nitrogen demand will remain high, heasserted, as the need to replenish stocks will mean continued highprices for corn, wheat and canola. Management estimates it will taketwo full years of harvests to fully replenish harvest grain stocks. InNorth America, Will forecasts positive farm economics in 2023. Thisincludes strong crop futures prices and improving yields. In thespring of 2023, 91-93 million acres of corn will be planted, CFforecasts.

• At a PE ratio (TTM) of 5.03, CF is trading at what appears tobe an undervalued level. According to an analysis by Zacks EquityResearch , CF’s Q4 per share earnings rise of 33% beat its ownConsensus Estimate even as CF’s reported sales lagged estimates, itsaid. However, share prices of CF rose 11.5% in the past year —compared to a 2.6% rise for the industry in thisperiod.

• CF’s Board has approved a new $3 billion share repurchase programafter the current buyback program is completed through 2025, theCompany said. CF repurchased 14.9 million shares for $1.35 billion in2022 and had at the end of 2022 some $150 million remaining for morebuybacks through the end of this authorization period through2024.

NTR Sees 2023 Agricultural Fundamentals RemainingStrong

• Nutrien Ltd. (NYSE:NTR) cited geopolitical supply disruption and market volatilityacross the agriculture, energy and fertilizer markets in reporting itsfull year 2022 performance results. It particularly noted the impactof the war in Ukraine constricting crop production. It reported netearnings of $7.7 billion on sales of $37.9 billion. Q4 2022 reached$1.1 billion net income on volume of $7.5 billion.

• Guidance for 2023 is inan EBITDA range of $8.4 billion-$10 billion with adjusted net earningsper share of $8.45-$10.65. The company said it is basing theseguidance totals on its views that agricultural fundamentals remainstrong in 2023 and will see the lowest grain stocks-to-use ratio inover 25 years. Further, NTR believes the Ukrainian crop productionwill continue to be constrained by the Ukraine war with Russia andwill take more than one growing season to alleviate the supply riskfrom the market.

• Analyst Zacks Equity Research found that theCompany’s Q4 2022 sales lagged the Zacks Consensus Estimate as NTR“faced headwinds from lower sales volumes and higher costinventory.” It noted that the Company successfully repurchased some53 million shares in 2022 and has already bought back an additionaleight million shares in 2023.

• With a market valuation of $38.9 billion, NTRis an opportunity trading at a PE ratio of (TTM) 5.31 today. Tradingat $77 per share now, its 52-week high is $117.25.

MOS Seen As a GreatDividend Stock

• TheMosaic Company (NYSE: MOS) a producer and marketer of concentratedphosphate and potash crop fertilizers for the global agricultureindustry, has voted to increase it shareholder dividend yield to 1.6%in 2023. Dividends are seen as easily covered by Company earnings —making this a potentially bright dividend stock, according to SimplyWallStreet. “ All of these things considered, we thinkthis has solid potential as a dividend stock ,” Simply Wall Street concludes .

• MOS has set February 22 for its Q4 and full year2022 announcement of fiscal results. Its earnings conference call isscheduled for February 23.

• Analyst Zacks sees MOS’ 8.4% gains overthe past month as indicative of a possible 12.1% sales gain YOY fiscalperformance . Zack awards MOS an ‘A’ for its stock tradingat a discount to its peers. Simply Wall Street is encouragedthat MOS has been growing its earnings per share at 63% a year overthe past five years. This suggests to SWS that MOS iseffectively and positively reinvesting in its business.

• MOSpredicts 2023 will be a ‘strong year’ for nutrient applicationsupported by healthy crop prices and grower economics. With a PE ratiostuck stubbornly under five at a (TTM) of only 4.86, MOS enjoys amarket cap of $17.0 billion.

• In its 10Q SEC filing on November 2, 2022,MOS reported sales for its three months ended September 30 of $5.35billion, a 56.5% increase from its $3.4 billion the comparable periodthe previous year. Net income attributable to Mosaic jumped to $841.7million in the 2022 quarter from $371.9 million the previousyear.

• The Company cited the war in Ukraine for a disruption offertilizer and agricultural commodities that resulted in a rise inprices for its products. MOS said Chinese reductions in phosphateexports were impacting the global fertilizer market.

CONCLUSION

AgriculturalSpecialty Chemicals stocks are attracting investors, especially itsundervalued stocks. They should be on every investor’s Watch List.Future predictions of a strengthening global market as well as sharebuyback programs and comparatively low PE ratios (TTM) are attractive.FSI in particular offers investors an early upside to participate inthis sector by taking a little more risk. Investors should take acloser look at FSI’s outstanding performance. It is trading at a PE(TTM) ratio of less than ten. The company reported a 33% increase insales for 2022. For full year 2021, it reported a 16% rise in profitson a 10% volume gain. For multiple years, FSI has generated continuedincreases in both volume and net profit. This is a Company thatcommercializes its specialty chemicals and offers proprietary andinnovative polymer biodegradable additives for peakperformance.

Razorpitch Inc. is a marketing communications andinvestor relations firm serving private, pre-IPO, and publiccompanies. RazorPitch specializes in corporate, investor, andstakeholder communications, with a primary focus on sponsored media.Our goal is to raise visibility, expand awareness, and increase value.To learn more, visit RazorPitch.com .

Disclaimers:This article contains sponsored content. The Private SecuritiesLitigation Reform Act of 1995 provides investors a safe harbor inregard to forward-looking statements. Any statements that express orinvolve discussions with respect to predictions, expectations,beliefs, plans, projections, assumptions, objectives, goals,assumptions of future events or performance are not statements ofhistorical fact may be forward looking statements. Forward lookingstatements are based on expectations, estimates, and projections atthe time the statements are made that involve a number of risks anduncertainties which could cause actual results or events to differmaterially from those presently anticipated. Forward lookingstatements in this action may be identified through use of words suchas projects, foresee, expects, will, anticipates, estimates, believes,understands, or that by statements, indicating certain actions& quotes; may, could or might occur Understand there is noguarantee past performance is indicative of future results. Investingin micro-cap or growth securities is highly speculative and carries anextremely high degrees of risk. It is possible that an investorsinvestment may be lost or due to the speculative nature of of thecompanies profiled. RazorPitch Inc responsible for the production anddistributions of this content. RazorPitch is not operated by alicensed broker, a dealer, or a registered investment advisor. Itshould be expressly understood that under no circumstances does anyinformation published herein represent a recommendation to buy or sella security. RazorPitch authors, contributors, or its agents, may becompensated for preparing research, video graphics, and editorialcontent. RazorPitch is compensated by Flexible Solutions Internationalto produce and syndicate content related to FSI. As part of thatcontent, readers, subscribers, and webs are expected to read the fulldisclaimers and financial disclosures statement that can be found onour website.

Contact Details

MarkMcKelvie

+1 585-301-7700

Company Website

http://razorpitch.com

Copyright (c) 2023 TheNewswire - All rights reserved.