Analysis of Fertilizer Stocks - March 11th, 2025

Key Companies in Focus

Union Pacific (UNP)
CSX (CSX)
Canadian Pacific Kansas City (CP)
Petróleo Brasileiro S.A. – Petrobras (PBR)
Norfolk Southern (NSC)

Business Insights and Market Implications

1. Union Pacific (UNP)

Stock Performance: Traded down $9.13 to $239.17.
Trading Volume: 1,031,555 shares vs. average of 2,297,651.
Market Cap: $144.52 billion.
Financial Metrics:
- PE Ratio: 21.56
- PEG Ratio: 2.15
- Beta: 1.05
- 52-week price range: $218.55 – $258.07.
Key Note: Strong market position in railroad freight transportation, critical for fertilizer and agricultural products.

2. CSX (CSX)

Stock Performance: Traded down $0.88 to $29.77.
Trading Volume: 5,119,826 shares vs. average of 11,634,305.
Market Cap: $56.40 billion.
Financial Metrics:
- PE Ratio: 16.63
- PEG Ratio: 1.92
- Beta: 1.25
- 52-week price range: $29.76 – $38.35.
Key Note: Significant role in transporting fertilizers and agricultural products, with a strong focus on rail-based freight services.

3. Canadian Pacific Kansas City (CP)

Stock Performance: Traded down $2.59 to $71.72.
Trading Volume: 1,820,197 shares vs. average of 2,940,231.
Market Cap: $66.96 billion.
Financial Metrics:
- PE Ratio: 24.73
- PEG Ratio: 2.00
- Beta: 0.98
- 52-week price range: $70.89 – $91.58.
Key Note: Transcontinental freight railway operations, critical for bulk commodities like fertilizers.

4. Petróleo Brasileiro S.A. – Petrobras (PBR)

Stock Performance: Traded down $0.29 to $12.50.
Trading Volume: 7,939,889 shares vs. average of 14,786,538.
Market Cap: $80.52 billion.
Financial Metrics:
- PE Ratio: 4.88
- PEG Ratio: 0.18
- Beta: 1.39
- 52-week price range: $12.53 – $17.44.
Key Note: Focus on oil and gas, with limited direct impact on fertilizer stocks but significant in energy supply for agricultural production.

5. Norfolk Southern (NSC)

Stock Performance: Traded down $5.58 to $233.52.
Trading Volume: 410,659 shares vs. average of 1,157,662.
Market Cap: $52.88 billion.
Financial Metrics:
- PE Ratio: 20.19
- PEG Ratio: 2.31
- Beta: 1.35
- 52-week price range: $206.71 – $277.60.
Key Note: Vital for transporting agricultural products and fertilizers, with a strong focus on rail transportation efficiency.

Market Trends and Competitive Dynamics

Fertilizer Stocks: Companies listed are key players in the logistics and transportation of fertilizers, critical for supporting global agricultural demand.
Stock Performance: All companies experienced price declines on March 11th, indicating broader market trends or sector-specific challenges.
Market Capitalization: Union Pacific ($144.52B) and Norfolk Southern ($52.88B) are among the largest, while Petrobras ($80.52B) also holds significant market value.
Financial Health: Companies vary in PE ratios (ranging from 4.88 to 24.73), indicating differing valuations based on growth prospects and stability.

Strategic Considerations

Supply Chain Efficiency: These companies play a crucial role in ensuring consistent fertilizer supply, impacting agricultural productivity and food security.
Commodity Demand: Fluctuations in fertilizer demand are influenced by global agricultural output and commodity prices.
Regulatory Environment: While not detailed here, future regulatory changes could impact transportation costs and logistics operations.

Long-Term Effects

Agricultural Growth: The stability of these companies is vital for supporting global agriculture, with implications for food security and economic growth.
Technological Advancements: Investments in rail infrastructure and efficiency could drive long-term competitive advantages.

Conclusion: The listed fertilizer stocks are integral to the agricultural supply chain. Their performance reflects broader market trends and sector-specific challenges. Monitoring their financial health and operational efficiency is crucial for understanding the impact on global agriculture and commodity markets.

Fertilizer Stocks To Watch Today – March 11th

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