Long-term trends favour Nutrien

Article Excerpt

Nutrien shot up to a record high of $147.93 in April 2022 following Russia’s invasion of Ukraine and the imposition of economic sanctions; the near-global ban on Russian goods lifted prices for potash and other fertilizers. Still, the stock has dropped lately as producers outside of Russia increase supply to meet demand. Over the longer term, Nutrien should continue to benefit as an expanding world population needs more and better food. That will drive demand for its fertilizers. The company is also using its strong cash flow to invest in new facilities and to fund share buybacks and dividend hikes. NUTRIEN LTD. $121 is a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 538.9 million; Market cap: $65.2 billion; Price-to-sales ratio: 1.5; Dividend yield: 2.1%; TSINetwork Rating: Average; www.nutrien.com) is the world’s largest producer of agricultural fertilizers: it ships about 27 million tonnes annually. Nutrien’s potash operations account for about 21% of global capacity, while its nitrogen and phosphate fertilizer businesses…

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