8 Best Fertilizer Stocks To Buy Now

3. Nutrien Ltd. (NYSE:NTR)

Average Upside Potential According to Analysts: 29.39%

Nutrien Ltd. (NYSE:NTR) is a major Canadian company in the agriculture and fertilizer sector. It is recognized as one of the largest producers of potash and nitrogen fertilizers globally. Nutrien Ltd. (NYSE:NTR) focuses on providing essential crop inputs and services, which include potash, nitrogen, and phosphate products for agricultural, industrial, and feed customers.

In June 2024, during its Investor Day, Nutrien Ltd. (NYSE:NTR) set ambitious targets for 2026 to enhance earnings and cash flow. According to the management, the company is currently on track to achieve $200 million in annual operational efficiencies by 2025, a year earlier than planned. This improvement will come from cost reductions across both its retail and corporate divisions.

The company aims to increase its production and sales of potash and nitrogen with minimal capital investment. By the end of the first three quarters of 2024, Nutrien Ltd. (NYSE:NTR) had already boosted sales volumes by 1.3 million tons, moving closer to its goal of increasing sales by 2 to 3 million tons compared to 2023 levels.

NTR is one of the top fertilizer stocks to buy. Over the past ten years, Nutrien Ltd. (NYSE:NTR) has grown its revenue at a compound annual growth rate (CAGR) of 15%, while its levered free cash flow has increased at a CAGR of 9% during the same period.

Analysts are also quite optimistic about NTR. Their 12-month price target suggests the stock could increase by 29% from its current level.

With a strong focus on operational efficiency and strategic growth initiatives, Nutrien Ltd. (NYSE:NTR) presents an attractive investment opportunity in the fertilizer market.