Q: Good morning,
NTR has been slowly moving up. It's part of my materials sector stocks in my non-registered as a cyclical play.
Would you consider it having made that turn and worth rounding into a full position with extra cash.
Thank you.
NTR has been slowly moving up. It's part of my materials sector stocks in my non-registered as a cyclical play.
Would you consider it having made that turn and worth rounding into a full position with extra cash.
Thank you.
5i Research Answer:
NTR has been on a downward trend since mid-2022 and we feel that its recent positive momentum in the past week has been sell pressure relief from tax-loss selling from 2024. It pays a decent yield of 3%, and analyst estimates have been trending up recently. It trades at a cheap valuation of 0.9X forward sales, 13.7X forward P/E, and 1.0X book. If we see its price move above $72, this could indicate a change in trend, and given the rising analyst estimates, cheap valuation, we would be comfortable buying or adding to a position here. We would be more comfortable with a larger position as it increases above $72 and confirms a rising long-term trend, as opposed to the downtrend it has exhibited since 2022.