Nutrien ready to accelerate its gains

Article Excerpt

We feel Nutrien’s shares are poised for big gains over the next few years. That’s despite moving mostly sideways since Agrium and Potash Corp. merged to form the company in January 2018. The stock’s future growth will come as the world’s population continues to expand—from today’s roughly 7.7 billion people to likely 10 billion by 2050. Such a massive increase will raise the need for more and better food, which will further drive demand for fertilizers. As well, Nutrien owns some of the world’s largest potash reserves, and its nitrogen fertilizer plants continue to benefit from the low-cost supply of natural gas.(It’s used to make the fertilizer.) What’s more, this new company continues to reward its investors with share buybacks and rising dividends. NUTRIEN LTD. $68 (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares o/s: 572.9 million; Market cap: $40.0 billion; Price-to-sales ratio: 2.0; Dividend yield: 3.5%; TSINetwork Rating: Average; www.nutrien.com) is the world’s largest producer of agricultural fertilizers, shipping about 27…