7 Cheap Canadian Stocks To Invest In

2. Nutrien (NYSE:NTR)  

Upside Potential: 21.94%  

Forward P/E Ratio as of September 28: 12.89

Number of Hedge Fund Investors: 35

Nutrien (NYSE:NTR) is the world’s largest provider of crop inputs and services. The company was formed in 2018 through the merger of Agrium and Potash Corporation of Saskatchewan and provides a range of products and services to farmers, including fertilizers, seed, and crop protection products. Nutrien (NYSE:NTR) has a diverse portfolio of operations in North and South America, Europe, and Asia.

One of the key drivers of Nutrien’s (NYSE:NTR) growth is the increasing demand for potash, a key ingredient in fertilizers. According to the company’s investor presentation, potash demand in Latin America, Europe, and China is expected to grow meaningfully over the next five years, and the company is well-positioned to capitalize on this trend due to its significant presence in these regions.

Nutrien (NYSE:NTR) has a strong balance sheet, with a debt-to-equity ratio of 0.6 and a significant cash balance. The company generating $2.7 billion in free cash flow over the past 12 months. This provides a significant buffer against any potential downturns in the industry and allows the company to invest in growth initiatives and return capital to shareholders.

The company’s stock is trading at a forward PE of 12.89, a 22.55% discount to its sector median of 16.65. Analysts have a consensus on the stock’s buy rating, setting a target price of $60.65, which suggests a 21.94% upside potential compared to current levels.