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

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

CF Industries Holdings ( CF) pushed the Chemicals industry lower today making it today's featured Chemicals laggard. The industry as a whole closed the day up 0.7%. By the end of trading, CF Industries Holdings fell $2.30 (-1.2%) to $190.12 on average volume. Throughout the day, 1,196,020 shares of CF Industries Holdings exchanged hands as compared to its average daily volume of 1,209,800 shares. The stock ranged in price between $188.80-$192.87 after having opened the day at $191.42 as compared to the previous trading day's close of $192.42. Other companies within the Chemicals industry that declined today were: Pure Bioscience ( PURE), down 4.3%, Gulf Resources ( GURE), down 3.5%, Ceres ( CERE), down 3.1% and Gevo ( GEVO), down 3.0%.
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CF Industries Holdings, Inc. manufactures and distributes nitrogen and phosphate fertilizer products worldwide. It operates in two segments, Nitrogen and Phosphate. CF Industries Holdings has a market cap of $11.4 billion and is part of the basic materials sector. The company has a P/E ratio of 6.5, below the S&P 500 P/E ratio of 17.7. Shares are down 5.1% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate CF Industries Holdings a buy, 1 analyst rates it a sell, and 7 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 largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins, good cash flow from operations and increase in stock price during the past year. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, Ikonics Corporation ( IKNX), down 14.4%, Pacific Ethanol ( PEIX), down 9.8%, Eastman Chemical Company ( EMN), down 5.0% and Amyris ( AMRS), down 4.9% , were all gainers within the chemicals industry with Sigma-Aldrich Corporation ( SIAL) being today's featured chemicals industry leader.

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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