Buy Nutrien on a retracement as price pumps ahead of quarter earnings

By:
on Aug 2, 2022
  • Nutrien has been retracing but still boasts 20% YTD returns.
  • The stock is benefiting from rising fertilizer prices.
  • Nutrien reports quarterly earnings on August 3, and analysts see more prospects.

If you are looking for defensive stocks this year, you would hardly miss out on Nutrien Ltd (NYSE:NTR). The Canadian fertilizer manufacturer has impressive 20.13% year-to-date returns. The returns are at the current price of $82 and would be higher at over $115 price in April. 

Rising prices of farm inputs amid supply bottlenecks have been a plus for Nutrien this year. In its first quarter, the company’s earnings hit $2.49 per share, up 10 times. The company reports the second quarter earnings on August 03 after the market close. Analysts tracked by Zacks Investment Research have a consensus second-quarter earnings of $5.9. The earnings are more than double $2.08 last year.

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The valuation of Nutrien looks healthy too. The forecast 12-month stock’s forward PEG ratio is $0.62. That implies that the stock is cheap, and investors could look to buy at very low prices. With the stock’s price starting to look up after the latest drop, is it time to buy?

Source – TradingView

While Nutrien appears to be under pressure after hitting $85 resistance, it remains bullish. The short-term moving averages have joined support. The MACD indicator is also bullish on the stock after bottoming at $72 in mid-July. 

Investors should take advantage of the slip in Nutrien to buy the stock. The stock can be bought where the price meets the 14-day or 21-day moving average. The second quarter results would be the catalyst for a breakout above $85, and investors should lock value.

Summary

Nutrien stock is attractive ahead of the quarterly earnings, and investors should buy the retracement. The stock is also attractively valued and could surge past the $85 resistance after the quarter results.

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