There are few new stocks out there that I would consider an all-star stock. But they certainly do exist. These stocks are ones that may be down now but are due for a huge rebound — especially when you consider their future outlook.
That’s the case for the TSX stock I’m going to discuss today. It offers immense value, trading down by 25% in the last year alone. Yet it has such a strong outlook that it would be foolish to ignore it today. So, let’s take a look at why you might want to buy it now and hold it for life.
Nutrien stock
The all-star stock I’m discussing today is superior choice Nutrien (TSX:NTR). Nutrien stock remained under the radar for years, even during the pandemic, when it saw a huge amount of business come its way.
During that time, the world wasn’t only hit by a pandemic. It also went through droughts, floods, wildfires and more. And yet, the world continued to need food. That meant companies like Nutrien stock had to supply the nutrients necessary, pandemic or not.
This led to a massive increase in the company’s e-commerce offerings. It surged in this area, providing farmers with the nutrients they needed to feed us all. But it didn’t stop there.
The company went on to surge to all-time highs, not from its own performance, but from macroeconomic factors. In this case, Russia invaded Ukraine, which led to sanctions against the invader by countries around the world. Crop nutrients, such as potash, were on the list, leading to a major increase in share price for Nutrien stock.
So, why the fall?
Nutrien stock surged then fell, as news came out that a recession or at least a downturn was coming. Investors got their money out while they could. However, while this may have been a good idea at the time, it’s left the company in a strong buy scenario right now.
Nutrien stock now trades at just 5.07 times earnings as of writing, with a dividend yield at 2.86%. And as mentioned, shares are down a whopping 25% in the last year alone. You can pick it up just under $100 per share, which it hasn’t seen in some time. And, honestly, this is then a company I would hold onto for decades.
While Nutrien stock may only have come on the market in 2017, it’s already proven that it can handle the pressure. The company has merged a fractured industry, bringing it into the 21st century. It’s now set up for immense growth in the years to come and yet trades at incredibly valuable levels.
Bottom line
Shares of Nutrien stock won’t be down forever. We’re set to enter a recession some time this summer. That means there are only a few months left where shares are likely to be down and not trending upwards. And with the company trading in double instead of triple digits, now is the time I would consider picking this stock up on the TSX today.
