Deep Value - Why Nutrien Remains Significantly Undervalued

Summary

  • Nutrien's stock has declined by 25% this year, but its fundamentals remain strong with good earnings and upgraded guidance.
  • The company sees strong demand, higher fertilizer affordability, and geopolitical tailwinds that could stabilize earnings.
  • Global grain yields are projected to fall, which could benefit crop prices and fertilizer demand.
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Introduction

The "fertilizer trade" hasn't been so easy this year, to put it mildly. Nutrien Ltd. (NYSE:NTR), the largest potash producer in the world, has lost roughly a quarter of its value since the start of this year.

It's down

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This article was written by

42.89K Followers

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 NTR 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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