Is CF Industries Stock Outperforming the Dow?

Northbrook, Illinois-based CF Industries Holdings, Inc. (CF) is one of the largest producers of ammonia and a global leader in nitrogen-based solutions for agricultural and industrial applications. It is valued at a market cap of $19.5 billion.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and CF fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the agricultural inputs industry. The company operates a highly cost-advantaged manufacturing and distribution network across North America and the United Kingdom, leveraging low-cost natural gas feedstocks to maintain industry-leading margins.
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This agriculture company is currently trading 7.1% below its 52-week high of $137.44, reached on Mar. 12. Shares of CF have rallied 62.5% over the past three months, notably outperforming the Dow Jones Industrial Average’s ($DOWI) 4.8% drop during the same time frame.
Moreover, on a YTD basis, shares of CF are up 65.4%, compared to DOWI’s 4.6% fall. In the longer term, CF has soared 65.3% over the past 52 weeks, significantly outperforming DOWI’s 9.2% uptick over the same time frame.
To confirm its bullish trend, CF has been trading above its 200-day moving average since mid-January and has remained above its 50-day moving average since early January.
On Feb. 18, CF delivered stronger-than-expected Q4 results, and its shares surged 3.8% in the following trading session. The company’s revenue increased 22.8% year-over-year to $1.9 billion, surpassing Wall Street estimates by 4.5%. Moreover, its adjusted EBITDA of $821 million grew 46.1% from the same period last year, while its adjusted EPS of $2.99 handily topped analyst expectations by 19.6%.
CF has significantly outpaced its rival, The Mosaic Company (MOS), which declined 6.3% over the past 52 weeks and increased 8.8% on a YTD basis.
Despite CF’s recent outperformance, analysts remain cautious about its prospects. The stock has a consensus rating of "Hold” from the 19 analysts covering it. While the company is trading above its mean price target of $99.67, its Street-high price target of $150 suggests a 19.5% premium to its current price levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com