Canadian traders already seemingly know that they need to be searching for out worth shares. Truthful sufficient, however which of them? The market is down, making it unattainable to determine that are worthwhile and that are only a low worth.

Immediately, I’m going to dig into an organization that has much more development on the way in which in addition to steady earnings. That’s regardless of earnings coming beneath estimates for a number of quarters in a row.

Let’s get into why I nonetheless imagine Nutrien (TSX:NTR) is a worth inventory all Canadian traders ought to think about.

We have to eat

I’m undecided if you understand this already, however the international inhabitants has now surpassed eight billion. That’s eight billion mouths to feed. What’s extra, all of those folks want a spot to dwell. So, with extra houses being obligatory, which means much less land for cultivation.

That’s why an organization like Nutrien is so vital. The worth inventory offers crop vitamins around the globe; it’s presently the world’s largest producer of potash. Nutiren continues to develop, as the corporate has change into an acquisition machine, merging the fractured sector of the crop nutrient trade.

It additionally proved its price throughout occasions of hassle. Nutrien inventory introduced the sector into the twenty first century, with its e-commerce arm proving fairly profitable. Farmers have been capable of make on-line orders in periods of drought, flooding, and even through the pandemic.

So, why are shares not doing effectively?

Earnings down

As talked about, Nutrien inventory reported a number of earnings studies that got here in beneath analyst estimates. The worth inventory noticed falling costs and decrease gross sales throughout its newest earnings report, resulting in a decelerate of its plan to extend its potash manufacturing.

Nutrien inventory additionally coupled this with one other blow, decrease its earnings steerage to between $6.4 billion and $8 billion, down from between $8.4 and $10 billion. Web earnings have been down 58% 12 months over 12 months, with gross sales down 20% as effectively.

It’s a stunning report after attaining report earnings on the again of the invasion of Ukraine by Russia. Fertilizer costs spiked, resulting in a rise in earnings for the worth inventory. Nutrien inventory said it might additionally ramp up potash manufacturing to fulfill demand, however this has since been postponed, if not scrapped. It’s now concentrating on 2026 for its enlargement plans as a substitute of 2025 to achieve 18 million tonnes of potash.

What now?

Shares have come down since these studies, with a drop of Nutrien inventory at 37% within the final 12 months. But it now affords a 3.38% dividend yield, so is it price contemplating? Within the opinion of analysts, sure.

The worth inventory now trades at simply 4.67 occasions earnings. Whereas potash costs are down, the corporate’s adjustment is a brilliant one. It nonetheless has a powerful long-term outlook. Additional, the rise in potash costs got here from exterior sources final 12 months. Now that this has come again right down to earth, the corporate can transfer ahead. A 12 months from now, it may hit report outcomes as soon as extra. So, I will surely think about the worth inventory immediately.