We recently compiled a list of the 10 Best Seasonal Stocks To Buy According to Hedge Funds. In this article, we are going to take a look at where Nutrien Ltd. (NYSE:NTR) stands against the other seasonal stocks.
Seasonal patterns in the stock market refer to recurring trends that occur at specific times of the year. These patterns can influence investment strategies, as certain sectors or stocks tend to perform better during particular periods. Understanding these seasonal trends can aid investors in making informed decisions. One well-known seasonal phenomenon is the January Effect, which suggests that stock prices, particularly those of small-cap companies, tend to rise in January more than in any other month. This pattern has been observed historically, though its impact can vary from year to year. Different sectors exhibit unique seasonal trends. For instance, the technology sector often experiences strength in the fourth quarter, coinciding with increased consumer spending during the holiday season. Conversely, the energy sector may see heightened activity during the summer months due to increased travel and energy consumption.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Historically, certain months have demonstrated consistent performance trends. For example, September has been the most challenging month for stock performance, with the S&P 500 Index averaging a return of negative 0.7% since 1950. The index has finished September on the positive side less than half of the time, underscoring the volatile terrain that investors have historically traversed during this month. As of early February 2025, the market sentiment in the US has been dampened by ongoing concerns regarding tariffs with major US trading partners. Recent announcements indicate that existing tariffs may remain in place for an extended period, adding to market instability. Additionally, China has imposed tariffs on various US products and initiated an antitrust investigation into Google, with potential similar actions against Apple’s App Store.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
The stocks mentioned below in the list are the companies that tend to perform better at a certain time in a year. They are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up of a farmer’s hands sowing a field of organic grains with crop inputs.
Nutrien Ltd. (NYSE:NTR)
Number of Hedge Fund Holders: 33
Nutrien Ltd. (NYSE:NTR) is a fertilizer manufacturing company that produces and supplies fertilizers such as potash, nitrogen, phosphate and ammonium sulfate. In earnings for the third quarter of 2024, the company reported net earnings of $25 million ($0.04 diluted net earnings per share), indicating stable financial performance. On January 29, Nutrien’s Trinidad nitrogen facility completed two major turnarounds at its urea and ammonia plants in the previous year, investing around $130 million to enhance operational efficiency and extend the plants’ lifespan. These turnarounds involved key upgrades, such as replacing the stripper in the urea plant and the primary reformer internals and catalyst in the ammonia plant.
Overall NTR ranks 8th on our list of the best seasonal stocks to buy according to hedge funds. While we acknowledge the potential of NTR as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than NTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
