Top Performer for Wednesday: Ashland (ASH)

Ashland Inc. (ASH - Snapshot Report) shares have surged double digits today after receiving an upgrade from a major brokerage analyst. According to news reports, the analyst believes that the diversified chemicals maker is showing improved margins.

Its gain of approximately 14% on Wednesday easily makes it a top-performing Zacks #1 Rank company.

ASH's price has dropped significantly over the past year in the tough economic environment. With today's gain, the company is hovering around $11.75 a share, compared to its 52-week high of more than $58. However, if this analyst is correct, then the company may be past the worst of it and poised for a better performance ahead.

The past 30 days has brought some upward earnings estimate momentum for ASH. Expectations for this fiscal year, ending September 2009, are up 1.3% in that time, while estimates for next fiscal year, ending September 2010, advanced 1.1%.

Furthermore, analysts currently expect profit for next fiscal year to improve more than 12% from this fiscal year.

ASH completed the acquisition of Hercules Inc. in mid November of last year, which had a large and negative impact on its fiscal first quarter results. However, adjusted EPS were able to beat the consensus, but still fell short of the year-ago result.

Much like its annual earnings estimates, expectations for the fiscal second quarter, ended March 2009, have also been on the rise in the past 30 days. Analysts now expect 31 cents for the quarter, compared to 29 cents a month ago, marking a gain of almost 7%.

ASH is the only company from the Chemicals-Diversified industry on today's Zacks #1 Rank List, which includes 197 stocks. It is also the only chemicals-related company on Wednesday's list.