In This Article:
Let's talk about the popular Nutrien Ltd. (TSE:NTR). The company's shares received a lot of attention from a substantial price movement on the TSX over the last few months, increasing to CA$70.56 at one point, and dropping to the lows of CA$63.29. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Nutrien's current trading price of CA$63.92 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Nutrien’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Nutrien
Is Nutrien Still Cheap?
Good news, investors! Nutrien is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is CA$89.06, but it is currently trading at CA$63.92 on the share market, meaning that there is still an opportunity to buy now. Nutrien’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
Can we expect growth from Nutrien?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 86% over the next couple of years, the future seems bright for Nutrien. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? Since NTR is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on NTR for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy NTR. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.