Zacks Industry Outlook Highlights CF Industries, Mosaic and Yara International

For Immediate ReleaseChicago, IL – May 14, 2025 – Today, Zacks Equity Research discusses CF Industries Holdings, Inc. CF, The Mosaic Co. MOS and Yara International ASA YARIY.Industry: FertilizerLink: https://www.zacks.com/commentary/2467534/3-top-fertilizer-stocks-to-consider-on-promising-industry-trendsThe Zacks Fertilizers industry is poised to gain on favorable demand fundamentals for major crop nutrients, including phosphate and potash. The underlying strength of the agricultural market and attractive farm economics are spurring demand for fertilizers globally.Industry players such as CF Industries Holdings, Inc., The Mosaic Co. and Yara International ASA are set to benefit from higher demand for fertilizers in major markets. While weak year-over-year fertilizer prices pose headwinds, factors like healthy farm income and expectations of increased planted acres are expected to drive crop nutrient demand globally in the near term.About the IndustryThe Zacks Fertilizers industry comprises producers, distributors and marketers of crop nutrients for the global agriculture industry. Companies in this space offer nutrients such as phosphates (including diammonium phosphate, monoammonium phosphate and phosphoric acid), potash and nitrogen (including urea, ammonia and urea ammonium nitrate) fertilizers. They also provide other nitrogen products to help farmers maximize crop yield. Crop nutrients are essential to drive agricultural productivity and boost the natural fertility of the soil. Demand for these nutrients is being supported by the need to increase the production of grains to address rising food consumption globally. Moreover, the constant need of growers to nourish their crops, replenish nutrients in the soil following a harvest and boost yields to feed a growing global population drives the consumption of fertilizers.What's Shaping the Future of the Fertilizers Industry?Healthy Demand for Crop Nutrients: The companies in the fertilizers space are well-placed to benefit from healthy global demand for major crop nutrients. In the United States, healthy farm profits and high levels of planted acreage are expected to drive demand for fertilizers. Strong farmer economics should support demand in major markets such as Brazil and India.The phosphate market is benefiting from higher global demand and low producer and channel inventories. Strong grower economics, improved affordability and low inventory levels are also expected to drive potash demand globally. Demand for nitrogen fertilizer remains healthy in major markets, backed by significant agricultural demand and recovering industrial demand. High levels of corn planted acres and low nitrogen channel inventories should drive demand for nitrogen in North America. Also, demand for urea imports in Brazil and India remains favorable.Agricultural Fundamentals Remain Favorable: Fundamentals in the broader agriculture space remain positive, given the sustained rise in food demand globally. While prices of corn, soybean and wheat have declined from the multi-year highs reached in 2022, they remain supportive. Farmer economics also remains attractive in most global growing regions due to strong crop demand.Per the U.S. Department of Agriculture (USDA), net farm income is projected to climb 29.5% year over year to $180.1 billion this year, driven by a significant increase in government payments. USDA forecasts direct government payments at $42.4 billion in 2025, a 354.5% surge from 2024. Solid farm income is likely to drive farmers’ spending on crop nutrients this year. Expectations of high levels of planted corn and soybean acres globally also suggest a pickup in fertilizer demand.Soft Fertilizer Prices to Weigh on Margins: Prices of phosphate and potash have retreated since the back half of 2022 from their peak levels attained in the first half, riding on the impacts of the Russia-Ukraine war and disruptions due to the sanctions in Belarus. Global nitrogen prices have also declined since the beginning of 2023. Higher global supply, driven by increased global operating rates due to lower global energy costs, has resulted in a decline in nitrogen prices. While fertilizer prices have increased modestly of late, weaker year-over-year prices are likely to dent the profitability of companies in this space over the near term.Zacks Industry Rank Reflects Upbeat ProspectsThe Zacks Fertilizers industry is part of the broader Zacks Basic Materials sector. It carries a Zacks Industry Rank #33, which places it in the top 13% of more than 250 Zacks industries.The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates a bright near term. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.Industry Underperforms S&P 500The Zacks Fertilizers industry has underperformed the Zacks S&P 500 composite while topping the broader Zacks Basic Materials sector over the past year.The industry has gained 7.5% over this period against the S&P 500’s rise of 8.3% and the broader sector’s decline of 10%.Industry's Current ValuationOn the basis of the trailing 12-month enterprise value-to EBITDA (EV/EBITDA) ratio, which is a commonly used multiple for valuing fertilizer stocks, the industry is currently trading at 12.78X compared with the S&P 500’s 15.9X and the sector’s 12.09X.In the past five years, the industry has traded as high as 18.05X and as low as 4.55X, with a median of 10.7X.3 Fertilizer Stocks to Keep a Close Eye OnYara International: Norway-based Yara International is a leading global producer and supplier of mineral fertilizers. It has industry-leading experience in ammonia development, production, operations and distribution. A favorable nitrogen demand environment bodes well for YARIY. Lower energy costs are also supporting its margins. Cost reductions and actions to strengthen the balance sheet are expected to boost the company’s profitability and cash flows. YARIY also remains focused on rewarding its shareholders by leveraging strong cash flows.Yara International carries a Zacks Rank #1 (Strong Buy). It has an expected earnings growth rate of 93.1% for 2025. YARIY’s earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 46.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.CF Industries: Illinois-based CF Industries is a leading global manufacturer of nitrogen and hydrogen products for fertilizer, clean energy, emissions reduction and other industrial applications. It is gaining from higher nitrogen fertilizer demand in the major markets. CF is seeing higher nitrogen demand for industrial uses in North America. Lower natural gas prices are also acting in the company’s favor. CF remains committed to boosting shareholders’ value by leveraging strong cash flows.CF Industries currently carries a Zacks Rank #3 (Hold). CF’s earnings beat the Zacks Consensus Estimate in each of the last four quarters at an average of 32%. CF also has an expected long-term earnings per share growth rate of 37%.Mosaic: Florida-based Mosaic is a leading producer and marketer of concentrated phosphate and potash for the global agriculture industry. MOS is benefiting from the strong demand for phosphate and potash, aided by favorable agricultural conditions. The company is also taking measures to cut costs in a still-challenging operating environment. Its actions to improve the operating cost structure through transformation plans are expected to boost profitability.MOS remains on track with its cost-reduction plan, which is expected to drive $150 million in run-rate cost reductions by the end of 2025. MOS also remains committed to carrying out investments with high returns and moderate capital expenditures.Mosaic, carrying a Zacks Rank #3, has an expected earnings growth rate of 11.1% for 2025. The Zacks Consensus Estimate for 2025 earnings for MOS has moved up 4.3% in the past 60 days.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CF Industries Holdings, Inc. (CF): Free Stock Analysis Report The Mosaic Company (MOS): Free Stock Analysis Report Yara International ASA (YARIY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks