CF Industries: What Falling Gas Prices Mean For Your Investment
Summary
- Natural gas prices are cratering as a result of high inventory levels, lower demand, and (relatively) warm weather.
- Fertilizer production in Europe is rising, which should be bearish for N-based fertilizers and CF Industries.
- However, CF Industries remains in a good spot as supply remains tight with new headwinds expected to emerge in the (winter) months.
- CF shares remain attractively valued, which means I stick to my bullish outlook.
Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT®+HOYA Capital.
As a member of the iREIT®+HOYA Capital team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of CF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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