Fertilizer Producers Come Out on Top

Fertilizer producers CF Industries Holdings

and Terra Nitrogen

rode last week's volatility, reaching a series of new 52-week highs and ending the week at $168.20 and $169.60 per share, respectively.

saw some analysts raise their price targets on the stock following the recent second-quarter earnings report. The company's board also quadrupled its quarterly dividend to $0.40 per share. The Illinois-based chemicals company manufactures and distributes nitrogen and phosphate fertilizer products to agricultural and industrial customers worldwide. It is an S&P 500 company with a market cap of $12.1 billion. The long-term earnings per share growth forecast is 10.9% and the return on equity is 23.6%. The dividend yield is 1.0%. The P/E ratio and the PEG ratio are in line with the industry averages. The share price rose about 15% last week and is about 25% higher than at the beginning of the year. Over that time, the stock has outperformed competitors Agrium

and Potash

as well as the broader markets.

an Iowa-based producer of nitrogen fertilizer products to agricultural and industrial customers in the U.S., last week reported strong year-over-year earnings growth for the second quarter. Terra Nitrogen GP serves as the general partner of the company and is a subsidiary of CF Industries. This $3.1 billion market cap company has a quarterly payout yield of 6.7%. Its return on equity is 97.4% and it reports no long-term debt. The 10.9 P/E ratio is less than the industry average. The share price is more than 103% higher than a year ago, as well as up more the 8% in the past week. The stock has outperformed CF Industries and Mosaic

, as well as the broader markets, year to date.

Traders interested in ETFs invested in CF Industries might want to consider the following trades:

Traders looking for a contrarian angle may want to consider this alternative: