Company Overview - CF Industries Holdings, Inc. is valued at a market cap of $13.5 billion and is a leading global manufacturer and distributor of nitrogen-based fertilizer and hydrogen products essential for modern agriculture and industrial applications [1] - The company is headquartered in Northbrook, Illinois, and operates large-scale manufacturing complexes in the United States, Canada, and the United Kingdom, producing core products such as ammonia, granular urea, urea ammonium nitrate (UAN), and ammonium nitrate, along with related chemicals [1] Earnings Expectations - CF Industries is expected to announce its fiscal Q4 earnings for 2025 soon, with analysts predicting a profit of $2.53 per share, which represents a 33.9% increase from $1.89 per share in the same quarter last year [2] - For fiscal 2025, analysts forecast a profit of $8.95 per share, indicating a 32.8% increase from $6.74 per share in fiscal 2024, although EPS is expected to decline by 18.8% year over year to $7.27 in fiscal 2026 [3] Stock Performance - Over the past 52 weeks, CF's stock has declined by 10.8%, underperforming the S&P 500 Index's increase of 16.9% and the Materials Select Sector SPDR Fund's rise of 10.9% [4] - The decline in CF's share price has been attributed to cyclical and sector-specific pressures, including the normalization of fertilizer prices, input cost volatility (especially natural gas), and occasional earnings or margin misses that have affected investor sentiment [5] Analyst Ratings - Wall Street analysts maintain a cautious stance on CF's stock, with an overall "Hold" rating; among 19 analysts, four recommend "Strong Buy," 14 suggest "Hold," and one indicates a "Moderate Sell" rating [6] - The mean price target for CF is $89.94, suggesting a potential upside of 3.7% from current levels [6]

Core Viewpoint - CF Industries Holdings, Inc. is positioned as a leading investment opportunity in the fertilizer sector, bolstered by a significant joint venture with JERA and a long-term subsidy agreement [1][2]. Group 1: Joint Venture and Subsidy - JERA, Japan's largest power generator, has secured a 15-year subsidy to cover the price difference between ammonia and coal as it begins importing ammonia for its planned US plant [2]. - The joint venture between CF Industries and JERA is part of the Blue Point project, which involves building extensive low-carbon ammonia facilities in Louisiana at a cost of $4 billion [2][3]. - CF Industries holds a 40% stake in the Blue Point project, while JERA owns 35% and Mitsui holds 25% [3]. Group 2: Analyst Ratings and Price Targets - Analysts at Mizuho have lowered their price target for CF Industries from $92 to $88, maintaining a Neutral rating due to anticipated weakness in Q1 2026 [4]. - RBC Capital has also reduced its price target for CF Industries from $95 to $90, citing stable agricultural and fertilizer fundamentals for 2026 [4]. Group 3: Company Overview - CF Industries is a major global manufacturer and distributor of nitrogen and hydrogen products, primarily focusing on fertilizers such as ammonia, urea, UAN, and ammonium nitrate, which enhance agricultural productivity [5].

Core Insights - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum, enhancing investment decision-making [2][3][6] Group 1: Zacks Style Scores Overview - The Zacks Style Scores rate stocks with an alphabetic system from A to F, where A indicates the highest potential for outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Group 2: Value Score - The Value Score identifies stocks trading below their true value by analyzing financial ratios such as P/E, PEG, and Price/Sales [3] Group 3: Growth Score - The Growth Score emphasizes a company's financial health and future growth potential, using historical and projected earnings, sales, and cash flow [4] Group 4: Momentum Score - The Momentum Score helps investors capitalize on price trends, utilizing metrics like short-term price changes and earnings estimate revisions [5] Group 5: VGM Score - The VGM Score combines the three Style Scores to highlight stocks with attractive value, strong growth forecasts, and positive momentum [6] Group 6: Zacks Rank Integration - The Zacks Rank, a proprietary stock-rating model, uses earnings estimate revisions to assist in portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.9% since 1988 [7] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for maximizing return potential [9] Group 7: Stock Example - CF Industries - CF Industries Holdings, Inc. is a major global manufacturer of nitrogenous fertilizers, currently holding a Zacks Rank of 3 (Hold) and a VGM Score of A [11] - The company has a Momentum Style Score of B, with shares increasing by 3.6% over the past four weeks, and an upward revision of earnings estimates for fiscal 2025 [12]

Industry Overview - Fertilizer stocks, including Mosaic, CF Industries, and Nutrien, are highlighted as key investments due to their significant trading volume recently [2] - These stocks are linked to agricultural nutrients such as nitrogen, phosphate, and potash, which are essential for enhancing crop yields [2] - The performance of fertilizer companies is influenced by various factors including crop prices, planting demand, feedstock and energy costs, weather conditions, trade policies, and environmental regulations [2] Company Profiles - **Mosaic Company**: Engages in the production and marketing of concentrated phosphate and potash crop nutrients, operating through three segments: Phosphates, Potash, and Mosaic Fertilizantes [3] - **CF Industries**: Focuses on manufacturing and selling hydrogen and nitrogen products for various applications, operating through segments such as Ammonia, Granular Urea, UAN, AN, and others [4] - **Nutrien Ltd.**: Provides crop inputs and services across four segments: Retail, Potash, Nitrogen, and Phosphate, distributing crop nutrients, protection products, seeds, and merchandise [4]

Core Viewpoint - Shares of Mosaic, Nutrien, CF Industries, and Intrepid Potash are experiencing downward pressure following the U.S. decision to lift sanctions on Belarusian potash fertilizers, indicating potential market shifts in the fertilizer industry [1]. Group 1: Market Reaction - Mosaic's shares are down 3%, Nutrien's by 4%, CF Industries by 1.5%, and Intrepid Potash by 1% in response to the news [1]. Group 2: Regulatory Changes - The U.S. has announced the immediate removal of sanctions on Belarusian potash fertilizers, as stated by special envoy John Coale [1]. - This decision is part of a broader effort to normalize relations between the U.S. and Belarus, potentially leading to further easing of restrictions [1].

Group 1 - Union Pacific has appointed W. Anthony "Tony" Will to its board of directors, effective January 5 [1] - Will has been the president, CEO, and board member of CF Industries Holdings since 2014 and plans to retire on January 4, serving in an advisory role until March 15 [1][4] - Union Pacific and Norfolk Southern expect to file their formal merger application with federal regulators on December 19 [3] Group 2 - Tony Will has a strong background in the industry, having joined CF Industries in 2007 and held various leadership positions [4] - Will's previous experience includes being a partner at Accenture and holding positions at Sears, Fort James Corp., Boston Consulting Group, and Motorola [4] - Will holds a bachelor's degree in electrical engineering from Iowa State University and an MBA from the Kellogg School of Management at Northwestern University [5]

Core Viewpoint - CF Industries Holdings, Inc. is focusing on decarbonizing ammonia production to support low-carbon solutions across various sectors, despite facing stock price volatility and market challenges [1]. Company Overview - CF Industries is headquartered in Northbrook, Illinois, and specializes in manufacturing hydrogen and nitrogen products [1]. - The company has a market capitalization of nearly $12.4 billion, indicating its status as a large-cap entity, with manufacturing assets located in the United States, Canada, and the United Kingdom [2]. Stock Performance - CF's stock price has shown significant volatility, trading 24.2% below its June peak of $104.45 and declining almost 7.5% over the past three months, while the Nasdaq Composite has advanced 4.8% during the same period [3]. - Over the past 52 weeks, CF's shares have dropped 12.1%, with a year-to-date increase of only 7.2%, contrasting with the Nasdaq's gains of 16.5% and 20.1% respectively [4]. Earnings Report - In Q3 2025, CF Industries reported a revenue increase of 21.1% year over year to $1.66 billion, matching market estimates, while EPS rose 41.3% to $2.19, exceeding forecasts [5]. - Adjusted EBITDA also increased by 30.5% year over year to $667 million, but investor sentiment remained cautious due to underlying market conditions [6]. Market Challenges - The company is facing a tight global nitrogen supply-demand balance, geopolitical risks, and concerns regarding natural gas availability, which are affecting investor confidence [6]. - Regulatory uncertainties, particularly regarding the European Union's carbon border adjustment mechanism, and operational challenges due to significant maintenance activities have further constrained production volumes [7].

European Companies - BASF Group reported Q3 2025 sales of €15.23 billion (approximately $17.7 billion), down 3.2% year-on-year from €15.739 billion. Operating profit (EBIT) increased by 11.4% to €278 million, while net profit fell by 40% to €172 million [1] - LyondellBasell's Q3 2025 sales and other revenues were $7.727 billion, down from $8.604 billion year-on-year. The company reported a net loss of $890 million compared to a net profit of $573 million in the same period last year [2] - INEOS Group Holdings reported Q3 2025 revenue of €3.418 billion (approximately $3.97 billion), down from €4.273 billion year-on-year. Operating profit decreased to €113 million from €339 million, with a net loss of €56.5 million compared to a profit of €283 million last year [3] - Evonik Group's Q3 2025 sales were €3.391 billion (approximately $3.94 billion), down from €3.832 billion year-on-year. Adjusted EBITDA fell to €448 million from €577 million, with a net loss of €106 million compared to a net profit of €223 million [4] - Covestro reported Q3 2025 sales of €3.171 billion (approximately $3.68 billion), down 12% from €3.603 billion. EBITDA decreased by 15.7% to €242 million, with a net loss of €47 million compared to a net profit of €33 million last year [5] - DSM-Firmenich's Q3 2025 sales were €3.07 billion (approximately $3.57 billion), down 5% from €3.244 billion. Adjusted EBITDA remained stable at €540 million [6] - Sika reported Q3 2025 sales of CHF 3.078 billion (approximately $3.4 billion), down 3.8% from CHF 3.915 billion. EBITDA decreased to CHF 1.645 billion from CHF 1.702 billion, with net profit falling to CHF 871 million from CHF 923 million [8] - Henkel's Q3 2025 sales fell by 6.3% to €5.147 billion, with the adhesives technology division reporting sales of approximately $3.145 billion, down 3.3% year-on-year [9] - Arkema's Q3 2025 sales were €2.187 billion (approximately $2.54 billion), down 8.6% from €2.394 billion. EBITDA fell by 23.8% to €310 million, with adjusted net profit down 53.6% to €78 million [10] - Syensqo reported Q3 2025 sales of €1.517 billion (approximately $1.76 billion), down 7.1% from €1.633 billion. EBITDA decreased by 12.8% to €326 million, with net profit down 31.8% to €110 million [11] - LANXESS reported Q3 2025 sales of €1.338 billion (approximately $1.55 billion), down 16.3% from €1.598 billion. EBITDA fell by 35.6% to €105 million, with a net loss of €77 million compared to a profit of €1 million last year [12] - Solvay's Q3 2025 sales were €1.044 billion (approximately $1.21 billion), down 9.7% from €1.156 billion. EBITDA decreased by 10.3% to €232 million, with net profit down 15% to €88 million [13] - Clariant reported Q3 2025 sales of CHF 906 million (approximately $1.03 billion), down 9% from CHF 991 million. EBITDA increased by 14% to CHF 159 million [14] Asian Companies - Rongsheng Petrochemical reported Q3 2025 revenue of ¥79.185 billion (approximately $11.2 billion), down 5.67% year-on-year. Net profit attributable to shareholders was ¥286 million, up 1427.94% [15] - SABIC's Q3 2025 revenue was SAR 34.333 billion (approximately $9.147 billion), down from SAR 36.88 billion year-on-year. Operating profit decreased to SAR 1.663 billion from SAR 2.477 billion, with net profit falling to SAR 1.135 billion from SAR 1.763 billion [16] - Hengli Petrochemical reported Q3 2025 revenue of ¥53.496 billion (approximately $7.67 billion), down 17.98% year-on-year. Net profit attributable to shareholders was ¥1.972 billion, up 81.47% [17] - Wanhua Chemical reported Q3 2025 revenue of ¥53.324 billion (approximately $7.54 billion), up 5.52% year-on-year. Net profit attributable to shareholders was ¥3.035 billion, up 3.96% [18] - Mitsubishi Chemical Group reported H1 2025 revenue of ¥1,799.124 billion (approximately $11.5 billion), down 10.5% year-on-year. Operating profit decreased by 19.6% to ¥86.489 billion, with net profit attributable to shareholders up 169% to ¥110.132 billion [19] - Taiwan Chemical announced Q3 2025 revenue of NT$69.576 billion (approximately $2.22 billion), down from NT$86.899 billion. The company reported a net profit of NT$1.78 billion, compared to a net loss of NT$1.918 billion last year [20] - Nanya Plastics reported Q3 2025 revenue of NT$64.2 billion (approximately $2.04 billion), down from NT$66.4 billion. Operating profit increased to NT$1.04 billion from NT$990 million, with net profit rising to NT$4 billion from NT$490 million [21] - Formosa Plastics reported Q3 2025 revenue of NT$41.718 billion (approximately $1.33 billion), down from NT$50.492 billion. The company reported a net loss of NT$2.685 billion, compared to a loss of NT$3.092 billion last year [22] - Asahi Kasei Corporation reported H1 2025 revenue of ¥1,486.368 billion (approximately $9.54 billion), down slightly from ¥1,490.334 billion. Operating profit increased to ¥108.915 billion from ¥107.454 billion, while net profit decreased to ¥60.248 billion from ¥66.266 billion [23] - Dongfang Shenghong reported Q3 2025 revenue of ¥31.245 billion (approximately $4.5 billion), down 11.91% year-on-year. The company reported a net loss of ¥260 million [24] - Shin-Etsu Chemical reported H1 2025 revenue of ¥1,284.522 billion (approximately $8.24 billion), up 1.4% year-on-year. Operating profit decreased by 17.7% to ¥333.935 billion, with net profit down 12.3% to ¥257.844 billion [25] - Toray reported H1 2025 revenue of ¥1,234.31 billion (approximately $7.92 billion), down 4.6% year-on-year. Operating profit decreased by 19.1% to ¥642.99 billion, with net profit down 33.5% to ¥369.35 billion [26] - Hengyi Petrochemical reported Q3 2025 revenue of ¥27.925 billion (approximately $3.95 billion), down 7.07% year-on-year. Net profit attributable to shareholders was ¥4.4079 million, up 102.21% [27] - LG Chem reported Q3 2025 sales of ₩111.962 trillion (approximately $76.24 billion), down 11.3% from ₩126.2 trillion. Operating profit increased by 38.9% to ₩6.797 trillion, while net profit fell to ₩4.470 trillion from ₩10.13 trillion [28] American Companies - Dow reported Q3 2025 net sales of $9.973 billion, down from $10.879 billion year-on-year. Net profit attributable to common shareholders was $62 million, down from $214 million [36] - Ecolab reported Q3 2025 net sales of $4.165 billion, up from $3.999 billion year-on-year. Operating profit decreased by 27% to $760 million, with net profit down 21% to $585 million [37] - DuPont reported Q3 2025 net sales of $3.072 billion, up from $2.862 billion year-on-year. The company reported a net loss of $123 million, compared to a profit of $455 million last year [39] - Westlake Corporation reported Q3 2025 net sales of $2.838 billion, down from $3.117 billion. The company reported an operating loss of $766 million, compared to a profit of $180 million last year [40] - IFF reported Q3 2025 net sales of $2.694 billion, down from $2.925 billion year-on-year. Operating profit decreased by 9% to $226 million, with net profit down to $40 million from $58 million [41] - Celanese reported Q3 2025 net sales of $2.419 billion, down from $2.648 billion. The company reported an operating loss of $1.275 billion, compared to a profit of $245 million last year [42] - Eastman Chemical Company reported Q3 2025 sales of $2.202 billion, down from $2.464 billion. Net profit attributable to the company was $47 million, down from $180 million [43] - Huntsman Corporation reported Q3 2025 revenue of $1.46 billion, down from $1.54 billion. The company reported a net loss of $25 million, compared to a loss of $33 million last year [44] Industrial Gases - Linde plc reported Q3 2025 sales of $8.615 billion, up from $8.356 billion year-on-year. Operating profit increased to $2.367 billion from $2.086 billion, with net profit rising to $1.929 billion from $1.55 billion [45] - Air Liquide reported Q3 2025 revenue of €6.599 billion (approximately $7.66 billion), down from €6.762 billion year-on-year [46] - Air Products & Chemicals reported Q4 2025 sales of $3.167 billion, down from $3.188 billion. The company reported an operating profit of $16.8 million, down from $242.4 million last year, with a net profit of $4.9 million compared to $195 million [47] Crop Science - Syngenta Group reported Q3 2025 revenue of $6.4 billion, down 6% year-on-year. EBITDA increased by 28% to $900 million [48] - Bayer Group reported Q3 2025 sales of €9.66 billion, down from €9.968 billion. EBIT loss was €543 million, compared to a loss of €382.2 million last year, with a net loss of €963 million compared to a loss of €4.183 billion last year [49] - Corteva, Inc. reported Q3 2025 net sales of $2.618 billion, up from $2.326 billion year-on-year. The company reported a net loss of $320 million, compared to a loss of $524 million last year [50] Fertilizers - Nutrien reported Q3 2025 sales of $6.007 billion, up from $5.348 billion year-on-year. Net profit increased to $469 million from $25 million [51] - Yara International ASA reported Q3 2025 revenue of $4.108 billion, up from $3.654 billion. Operating profit increased to $470 million from $309 million, with net profit rising to $320 million from $286 million [52] - The Mosaic Company reported Q3 2025 net sales of $3.452 billion, up from $2.811 billion. Operating profit increased to $340 million from $115 million, with net profit rising to $411 million from $122 million [53] - CF Industries reported Q3 2025 net sales of $1.659 billion, up from $1.37 billion. Net profit attributable to common shareholders was $353 million, compared to $276 million last year [54] Coatings - PPG Industries reported Q3 2025 net sales of $4.082 billion, up from $4.032 billion year-on-year, with net profit remaining stable at $444 million [55] - AkzoNobel reported Q3 2025 revenue of €2.547 billion (approximately $2.96 billion), down from €2.668 billion. The company reported an operating loss of €29 million, compared to a profit of €259 million last year, with a net loss of €194 million compared to a profit of €163 million last year [56] - Nippon Paint Holdings reported YTD revenue of ¥1,318.378 billion (approximately $8.467 billion), up 7.8% year-on-year. Operating profit increased by 36.4% to ¥190.579 billion, with net profit rising by 38.6% to ¥134.336 billion [57] - Sherwin-Williams reported Q3 2025 net sales of $6.358 billion, up from $6.163 billion. Net profit increased to $833 million from $806 million, with the paint retail group reporting sales of $3.837 billion, up 5.1% [58] - Axalta Coating Systems Ltd. reported Q3 2025 net sales of $1.288 billion, down from $1.32 billion. Operating profit increased to $204 million from $193 million, with net profit rising to $110 million from $101 million [59] - Three Trees reported YTD revenue of ¥9.392 billion (approximately $1.33 billion), up 2.69% year-on-year. Net profit attributable to shareholders was ¥744 million, up 81.22% [60]

Core Insights - CF Industries Holdings, Inc. is recognized as one of the 14 best US stocks for long-term investment [1] - CIBC initiated coverage on CF Industries with a Neutral rating and a price target of $87 [2] Financial Performance - The company reported a trailing twelve-month operating cash flow of $2.63 billion and free cash flow of $1.7 billion [3] - In the third quarter, CF Industries repurchased 4.3 million shares for $364 million, completing a $3 billion share repurchase program authorized in 2022 [3] Production and Growth - For the first nine months of the fiscal year, CF Industries produced 7.6 million tons of gross ammonia, an increase from 7.2 million tons in the same period last year [4] - The company anticipates gross ammonia production to reach approximately 10 million tons for FY25 [4] Strategic Initiatives - CF Industries is heavily investing in decarbonizing production through the development of low-carbon ammonia, which has contributed to high shareholder returns [3] - The company manufactures and distributes hydrogen and nitrogen products for clean energy, fertilizers, and other industrial applications [4]

Core Insights - The article discusses the best American stocks for long-term investment, emphasizing the shift in investor strategies towards diversification and away from traditional portfolios [1][2] Long-term Investment Trends - A significant portion of investors, approximately 60%, believe that long-term discipline is essential in today's market, with 70% expressing greater patience for investment growth compared to their initial investing experiences [2] - The trend towards dividend investing aligns with long-term strategies, as 80.9% of S&P 500 companies pay dividends, with an average yield of 1.93% among Dow Jones Industrial Average constituents [3] Methodology for Stock Selection - The article outlines a methodology for selecting US companies that provide regular dividends, focusing on those with over 9% revenue growth over five years and positive analyst sentiment, resulting in a list of 14 hedge fund-favored companies [6][7] Company Highlights - **Atmos Energy Corporation (NYSE:ATO)**: - Holds 32 hedge fund positions and has a 5-year revenue growth of 9.92% - Recently increased its quarterly dividend by 15%, marking 41 consecutive years of dividend growth, with capital expenditures of $3.6 billion in FY25, primarily for safety and reliability [8][10][11] - **CF Industries Holdings, Inc. (NYSE:CF)**: - Holds 41 hedge fund positions and boasts a 5-year revenue growth of 15.96% - Focused on decarbonizing production with low-carbon ammonia, reporting a trailing twelve-month operating cash flow of $2.63 billion and free cash flow of $1.7 billion [12][13][14] - **Diamondback Energy, Inc. (NASDAQ:FANG)**: - Holds 42 hedge fund positions with a remarkable 5-year revenue growth of 36.06% - Benefits from low-cost production in the Permian Basin, generating 15% higher free cash flow per share despite a 14% decline in oil prices, and is nearing its $1.5 billion net debt target [15][17][18]