Nutrien (TSX:NTR) shares have certainly seen better days, as have their shareholders. Nutrien stock once surged to almost $150 per share before falling. Yet it’s all outside issues bringing the stock down.
These issues, however, are temporary and have nothing to do with Nutrien stock itself. Let’s look at why I consider Nutrien stock a strong buy on the TSX today.
What are those outside influences?
The first major outside influence on Nutrien stock was the invasion of Ukraine by Russia. When this happened, sanctions on Russian products caused a shortage in items around the world. This included crop nutrients like potash, of which Russia is a major and cheap producer.
Therefore, Nutrien stock surged with the promise of higher potash prices, and more sales opportunities. The thing is, this didn’t last long. The market started to drop further, as investors looked to take their returns and get out should a recession hit, as interest rates and inflation rose.
This certainly didn’t help Nutrien either, with the company seeing higher costs over the last several quarters. What’s more, Nutrien stock thought it would be on top of the world with excellent potash prices. However, prices have dropped since then, leading to Nutrien recently lower its annual guidance.
While this might seem all doom and gloom, it could actually mean that now is the time to get in on Nutrien stock.
Still a solid stock
As mentioned, these were all outside influences on Nutrien stock — influences that will eventually come to an end when the market recovers. Yet right now, Nutrien remains down about 36% in the last year and 24% year to date.
While it’s certainly true that Nutrien stock lowered its guidance, it’s not as if the company isn’t performing well. It continues to have a strong balance sheet, with cash available for mergers and acquisition opportunities — something that has truly fueled the stock in the past.
Now, Nutrien stock is in oversold territory, making it an incredible buying opportunity. It holds a 3.95% dividend yield as of writing and trades at just 4.22 times earnings. Shares are now at the lowest point we’ve seen since summer of 2021!
Get in for the long haul
There were many investors who wished they had picked up Nutrien stock back when it was around these shares prices back in 2021. Now, they have that opportunity once more, as Nutrien is sure to bounce back for long-haul investors.
Crop nutrients are here to help the world’s growing population, now surging past eight billion people. As we continue to see less arable land, we’ll need crop nutrients to fuel the soil. And Nutrien stock has also brought this industry into the 21st century, helping farmers, even during droughts, fires, and a pandemic, through its e-commerce arm.
So, yes, Nutrien stock is certainly a strong buy on the TSX today — one that I would consider putting even a small stake in. Right now, you could see that double to past share prices and collect a massive dividend in the meantime.
