CVR Partners LP (UAN) is trading strong in the weak market, recently hitting a new all-time high ahead of strong Q2 results that came in ahead of expectations. With estimates on the rise and a compelling valuation, this Zacks #1 Rank stock has plenty of momentum.
Company Description
CVR Partners LP is a fertilizer company that specializes in nitrogen. The company was spun off from CVR Energy in April of 2011 and has a market cap pf $1.71 billion.
CVR Partners has pumped out some big gains since being spun off from CVR Energy in April. That bullish movement has been supported by robust demand and earnings growth, on display with strong Q2 results from late July that came in ahead of expectations.
Second-Quarter Results
Revenue for the period was up 43% from last year to $81 million. Earnings also came in strong at 52 cents, 6% ahead of the Zacks Consensus Estimate calling for 49 cents.
The good quarter was driven by a sharp increase in prices on growing demand, with average ammonia and UAN prices up 84% and 46% respectively from last year.
Estimates
We saw some pretty solid movement in estimates off the good quarter, with the current year adding 14 cents to $1.77 while the next-year estimate gained 39 cents to $1.87, a solid 6% growth projection.
Valuation
In light of the gains, shares do look a bit pricey, trading with a PEG ratio of more than 2, twice the traditional benchmark of 1 for value.
12-Month Chart
On the chart, UAN has seen big gains since hitting the board in April, climbing from $16.75 to a recent high above $26. Shares pulled back a bit in the weak market, but the longer-term trend is still bullish, take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.
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