Daniel Shvartsman

Investing.com: Fertilizer stocks rose Wednesday due to continued pressure from commodity prices on the crucial agricultural sector.

CF Industries (NYSE 🙂 reached a 52-week record, increasing 4.3% during mid-day trading on Wednesday. Mosaic Co. was next with a 3.5% increase today. Intrepid Potash was up 3% while CVR Partners (NYSE;) was up 2.6%.

An increase in European wholesale energy prices has led to continued strength. This was due to plant closures and shortfalls. This has led to higher fertilizer prices and companies like CF have been reaping its benefits. CF’s earnings call highlighted the strength of the robust global nitrogen market. Piper Sandler began coverage last week on CF Industries. She cited the inherent skepticism in the market that this cycle of agriculture would be the same as the 2007-2009 period and stated that that skepticism is misguided.

Mosaic reported 71% growth in sales between November 2020 and November 2021, despite a decrease in Potash and Potassium volumes (though Mosaic Fertilizantes volume was up significantly). After a disappointing Q3 earnings report, Intrepid Potash is still trading close to its previous levels. CVR Partners’ 52-week peak is at 7%.

These stocks are deemed to be fair-valued by InvestingPro. This suggests that there is upside for CF Industries.fair value estimateMosaic (at $82.76 and 15% up),fair value estimateIntrepid Potash ($53.07), $53.74 (with 38% upside) fair value estimateA 24% rise, with a lower fair value estimateUAN Partners: $68.09 per share vs. current $81 price With a potential upside of 18%, the Mosaic stock has the highest upside for sell-side analysts.