Today's Pre-Market Trading Very Positive For CF Industries Holdings (CF)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified CF Industries Holdings ( CF) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified CF Industries Holdings as such a stock due to the following factors:

  • CF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $172.9 million.
  • CF traded 45,147 shares today in the pre-market hours as of 8:21 AM.
  • CF is up 8% today from Friday's close.

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More details on CF:

CF Industries Holdings, Inc. manufactures and distributes nitrogen and phosphate fertilizer products worldwide. It operates in two segments, Nitrogen and Phosphate. The stock currently has a dividend yield of 2.3%. CF has a PE ratio of 8.9. Currently there are 8 analysts that rate CF Industries Holdings a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for CF Industries Holdings has been 588,300 shares per day over the past 30 days. CF has a market cap of $12.9 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 2.57 and a short float of 3.6% with 2.29 days to cover. Shares are up 10.9% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates CF Industries Holdings as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, CF's share price has jumped by 25.46%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CF should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 46.72% is the gross profit margin for CF INDUSTRIES HOLDINGS INC which we consider to be strong. Regardless of CF's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CF's net profit margin of 21.22% compares favorably to the industry average.
  • CF, with its decline in revenue, underperformed when compared the industry average of 7.6%. Since the same quarter one year prior, revenues fell by 14.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Chemicals industry and the overall market, CF INDUSTRIES HOLDINGS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The debt-to-equity ratio of 1.02 is relatively high when compared with the industry average, suggesting a need for better debt level management. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 4.30, which shows the ability to cover short-term cash needs.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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