) hit a new 52-week high of $246.95 on Jan 10 and eventually
closed at $246.16.
Year-to-date, CF Industries' share price has recorded a return
of 5.6%. Average volume of shares traded over the last three
months was roughly 785.5K.
What is Driving CF Industries Up?
CF Industries´ adjusted earnings for the third quarter of
2013, reported on Nov 4, 2013, beat the Zacks Consensus Estimate.
The company is benefiting from declining natural gas costs in
North America and a solid start to the domestic planting season.
Healthy domestic fertilizer demand and lower natural gas costs
are expected to drive results moving ahead.
CF Industries is expected to spend roughly $2 billion till
2016 on capacity expansion and product upgrade projects, which
are expected to offer roughly 1 million additional gross tons of
ammonia and 3.5 million tons of combined UAN and urea
The company's acquisition of Viterra Inc's 34% interest in the
Medicine Hat nitrogen facility underscores its strategy to invest
in lucrative projects. Following the acquisition, CF Industries'
annual marketable nitrogen volume rose by around 425,000 gross
tons of ammonia and 275,000 tons of urea. The company is also
progressing with its capacity expansion projects in Louisiana and
CF Industries enjoys abundant cash flows, which can help it to
improve its balance sheet, distribute cash to shareholders and
invest in the growth of the business. The company's Board has
approved a new program to buyback shares worth up to $3 billion
through Dec 31, 2016. CF Industries has bought back around 6.5
million shares so far in 2013. Moreover, the company has hiked
its quarterly cash dividend by 150% to $1.00 per share from $0.40
The decline in natural gas prices has also been an advantage for
CF Industries. The company's Nitrogen segment is enjoying the
benefit of abundant natural gas supply, driven by an increase in
production in North American shale gas and favorable weather.
CF Industries currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Other fertilizer companies worth considering are
The Andersons Inc.
Intrepid Potash Corp.
). While China Bluechip holds a Zacks Rank #1 (Strong Buy), The
Andersons and Intrepid Potash hold a Zacks Rank #2 (Buy).
ANDERSONS INC (ANDE): Free Stock Analysis
CHINA BLUECHEM (CBLUY): Get Free Report
CF INDUS HLDGS (CF): Free Stock Analysis
INTREPID POTASH (IPI): Free Stock Analysis
To read this article on Zacks.com click here.