CF Industries Holdings Inc (NYSE:CF) Hits 52 Week High; Peers Slowing Down

Boston, MA, 03/17/2014 – CF Industries Holdings Inc (NYSE:CF), the second largest producer of nitrogen fertilizer in the world, is the only stock in the fertilizer industry which has posted strong results in the recent quarters. It hit a 52 week high last week and returned 25%, inclusive of dividends.

Comparison With Competitiors

While competitors in the market were drooling behind facing huge losses, CF was the only one which continued to surge higher. Shares of other companies including PotashCorp Corp./Saskatchewan (USA) (NYSE:POT) were down 14%, that of Mosaic Co (NYSE:MOS) fell 19% and shares of CVR Partners LP (NYSE:UAN) declined 16%. Analysts are citing the company’s nitrogen business to be the key factor which backed it in continuing to outperform by moving more volumes at prices even higher than expected.

CF Industries Holdings Inc (NYSE:CF) has reportedly performed the worst among other in the industry with revenue declining 7% and gross and net profits plunging 18% and 22% respectively. Since the last six months, CF is now up as much as by 30%. This is comparable to peers such as CVR Partners LP (NYSE:UAN) which has surged only 8.5% in the same period. Other including S&P 500 (INDEXSP:INX)and Dow Jones have surged only 10.5% and 6.7% in contrast, during the same period.

Analysts Explain

What has led its shares to surge is the strategy it has adapted to address the concerns of its investors around the near term effect of the high natural gas prices. It has hedged natural gas at levels lower than $4 per mmbtu. It is exploiting the fact that it is among the largest producers of nitrogen and is looking for export opportunities, especially in the markets of Latin America.

Other reasons justifying its superior performance over peers is its specialty in a nutrient which commands premium prices. It is unaffected by the volatility in prices of key nitrogen input, natural gas, because it utilizes petroleum coke instead.

CF Industries Holdings Inc (NYSE:CF), the second largest producer of nitrogen fertilizer in the world, is the only stock in the fertilizer industry which has posted strong results in the recent quarters. It hit a 52 week high last week and returned 25%, inclusive of dividends.

Comparison With Competitiors

While competitors in the market were drooling behind facing huge losses, CF was the only one which continued to surge higher. Shares of other companies including PotashCorp Corp./Saskatchewan (USA) (NYSE:POT) were down 14%, that of Mosaic Co (NYSE:MOS) fell 19% and shares of CVR Partners LP (NYSE:UAN) declined 16%. Analysts are citing the company’s nitrogen business to be the key factor which backed it in continuing to outperform by moving more volumes at prices even higher than expected.

CF Industries Holdings Inc (NYSE:CF) has reportedly performed the worst among other in the industry with revenue declining 7% and gross and net profits plunging 18% and 22% respectively. Since the last six months, CF is now up as much as by 30%. This is comparable to peers such as CVR Partners LP (NYSE:UAN) which has surged only 8.5% in the same period. Other including S&P 500 (INDEXSP:INX)and Dow Jones have surged only 10.5% and 6.7% in contrast, during the same period.

Analysts Explain

What has led its shares to surge is the strategy it has adapted to address the concerns of its investors around the near term effect of the high natural gas prices. It has hedged natural gas at levels lower than $4 per mmbtu. It is exploiting the fact that it is among the largest producers of nitrogen and is looking for export opportunities, especially in the markets of Latin America.

Other reasons justifying its superior performance over peers is its specialty in a nutrient which commands premium prices. It is unaffected by the volatility in prices of key nitrogen input, natural gas, because it utilizes petroleum coke instead. 

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