Buy Nutrien before it surges

Article Excerpt

Nutrien has risen just 16% since the merger of Agrium and Potash Corp. at the start of 2018. That’s modest compared to the 26% rise for the S&P/TSX Composite Index. Still, we feel that slower rise speaks to Nutrien’s unrecognized value. In fact, we believe the company is in a strong position to accelerate its growth over the next few years. The fertilizer giant has now mostly integrated the operations of its two predecessors. The resulting cost cuts are helping it make savvy acquisitions and reward shareholders with higher dividends. Longer term, Nutrien should benefit from an expanding world population, set to rise from the current 7.6 billion people to around 10 billion by 2050. That will increase the need for more and better food and drive demand for the company’s fertilizers. NUTRIEN LTD. $80 is a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 570.7 million; Market cap: $45.7 billion; Price-to-sales ratio: 2.1; Dividend yield: 2.9%; TSINetwork…