Long-term trends still favour Nutrien

Article Excerpt

Nutrien’s shares shot up to $148 in April 2022 on a sharp increase in potash prices following Russia’s invasion of Ukraine. The stock is now down 47% as potash supplies and prices stabilize. We still like the company’s long-term outlook, particularly as the world’s rising population and declining arable land per person will require farmers to use more fertilizers to increase their crop yields. NUTRIEN LTD. $72 is a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 494.6 million; Market cap: $35.6 billion; Price-to-sales ratio: 1.0; Dividend yield: 4.1%; TSINetwork Rating: Average; www.nutrien.com) is the world’s largest producer of agricultural fertilizers, including potash, nitrogen and phosphate. It ships about 26 million tonnes annually. Nutrien also sells seeds, fertilizers and agricultural products to farmers through some 2,000 stores spread across the Western Hemisphere and Australia. The company took its current form on January 1, 2018, through the merger of fertilizer producer Agrium (old symbol AGU) and its rival Potash Corp. of…