The Zacks Fertilizers industry is anticipated to benefit from a strong demand for major crop nutrients like phosphate and potash, driven by healthy farm economics and an increase in planted acreage, particularly in the U.S., Brazil, and India. Despite facing challenges from weak fertilizer prices, global demand for crop nutrients is expected to rise, supported by ongoing agricultural productivity needs and food consumption increases.
Key industry players include Nutrien Ltd. (NTR), ICL Group Ltd. (ICL), and Intrepid Potash, Inc. (IPI), which are well-positioned to capitalize on these trends. The industry has seen a 13% decline in performance over the past year, contrasting with the S&P 500’s gain of 23.2%. Currently, the Fertilizers industry trades at an enterprise value-to-EBITDA ratio of 10.07X, below the S&P 500’s 14.77X.
Overall, while fertilizer prices surged to record levels in 2022 due to geopolitical tensions and supply chain disruptions, demand remains robust, underpinning growth for industry players as they navigate the current economic landscape.
