CF Industries Holdings Inc (CF): Today's Featured Chemicals Loser

CF Industries Holdings ( CF) pushed the Chemicals industry lower today making it today's featured Chemicals loser. The industry as a whole closed the day down 2.3%. By the end of trading, CF Industries Holdings fell $13.57 (-6.9%) to $183.91 on heavy volume. Throughout the day, 3.8 million shares of CF Industries Holdings exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in price between $181.61-$194.92 after having opened the day at $194.20 as compared to the previous trading day's close of $197.48. Other company's within the Chemicals industry that declined today were: Gevo ( GEVO), down 8.4%, OM Group ( OMG), down 8%, Ceres ( CERE), down 7.6%, and Aceto Corporation ( ACET), down 7.3%.

CF Industries Holdings, Inc., through its subsidiary, CF Industries, Inc., manufactures and distributes nitrogen and phosphate fertilizer products, serving agricultural and industrial customers worldwide. It operates in two segments, Nitrogen and Phosphate. CF Industries Holdings has a market cap of $13.13 billion and is part of the basic materials sector. The company has a P/E ratio of 9.1, equal to the average chemicals industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 38% year to date as of the close of trading on Thursday. Currently there are 11 analysts that rate CF Industries Holdings a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates CF Industries Holdings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the chemicals industry could consider Materials Select Sector SPDR ( XLB) while those bearish on the chemicals industry could consider ProShares Short Basic Materials Fd ( SBM).
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