CF Industries: A Trump 2.0 Bellwether

Justin Polce
487 Followers
(10min)

Summary

  • CF Industries, the largest nitrogen fertilizer producer, benefits from low U.S. natural gas prices and strategic export capabilities, positioning it well for growth.
  • Despite risks from energy volatility and global competition, CF's unique location and Trump 2.0 policies mitigate these challenges.
  • Strong agricultural production forecasts in the U.S., particularly for corn and soybeans, bolster CF's market position and growth prospects.
  • Trading at an attractive multiple, CF Industries offers a relatively safe investment with significant free cash flow and long-term shareholder value growth potential.

Farm machines harvesting corn for feed or ethanol

JamesBrey/E+ via Getty Images

Summary

CF Industries (NYSE:CF) is the largest producer of nitrogen fertilizer in the world, with six facilities in the United States, two in Canada, and one in the UK. It can be a volatile business, with a variety of cross-currents

This article was written by

487 Followers
MS Industrial and Applied Mathematics. Investing through a loosely coupled, complex system. "I am a great believer in luck, and I find the harder I work, the more I have of it." -Thomas Jefferson

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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