Today we're going to take a look at the well-established CF Industries Holdings, Inc. (NYSE:CF). The company's stock saw a decent share price growth of 19% on the NYSE over the last few months. The recent share price gains has brought the company back closer to its yearly peak. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. However, could the stock still be trading at a relatively cheap price? Let's examine CF Industries Holdings's valuation and outlook in more detail to determine if there's still a bargain opportunity.

Is CF Industries Holdings Still Cheap?

Great news for investors – CF Industries Holdings is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is $114.42, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What's more interesting is that, CF Industries Holdings's share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

Can we expect growth from CF Industries Holdings?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. Though in the case of CF Industries Holdings, it is expected to deliver a negative earnings growth of -13%, which doesn't help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What This Means For You

Are you a shareholder? Although CF is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. We recommend you think about whether you want to increase your portfolio exposure to CF, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you've been keeping tabs on CF for some time, but hesitant on making the leap, we recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

If you want to dive deeper into CF Industries Holdings, you'd also look into what risks it is currently facing. To that end, you should learn about the 2 warning signs we've spotted with CF Industries Holdings (including 1 which is a bit concerning).

If you are no longer interested in CF Industries Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.