2 Stocks Bearing Fruit Amid Lingering Fertilizer Woes
Zacks Investment Research | Sep 21, 2017 02:14AM ET
The fertilizer industry is not out of the woods yet and remains buffeted by certain headwinds that continue to weigh on stocks in the space this year. Sustained pressure on crop commodity prices is scuppering a meaningful recovery.
The overall weak fertilizer industry fundamentals have kept investors away this year. Does that mean you should pluck the entire industry out of your portfolio?
If you look beyond the negatives, there are a few bright spots such as improving pricing and demand dynamics for potash, a major crop nutrient, and signs of stability in the farm economy.
The the complete list of today’s Zacks #1 Rank stocks here.
The company has an expected earnings growth of 52.2% for 2017. It also has a long-term expected earnings per share growth rate of 32.5%. The stock has also gained a whopping 100.5% year to date, significantly outperforming the Zacks Fertilizers industry’s gain of 8.2% over the same period.
Annual estimates for Sociedad Quimica have also moved north over the past 60 days, reflecting analysts’ confidence in the stock. Over this period, the Zacks Consensus Estimate for 2017 and 2018 for the company’s earnings has increased by around 11.8% and 24%, respectively.
Intrepid Potash, Inc. (NYSE:IPI)
Headquartered in Denver, CO, Intrepid Potash is another attractive pick with a Zacks Rank #2 (Buy). The company has an expected earnings growth of 73.8% for 2017. It also delivered positive earnings surprise of 50% in the last reported quarter. Moreover, the stock has also gained a solid 96.2% year to date, significantly outperforming the Zacks Fertilizers industry’s gain of 8.2%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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