Chemtura Corporation ( CHMT - Snapshot Report ) is a Zacks #1 Rank (Strong Buy) after posting four upside surprises and gets higher estimates for 2012. Its low multiples make it worth a look for value investors.

Company Description

Chemtura Corporation, manufactures specialty chemical solutions and consumer products. The company's Consumer Products segment provides recreational water purification products, such as sanitizers, algaecides, biocides, oxidizers, pH balancers, mineral balancers, and other specialty chemicals and accessories.

Four Straight Beats

CHMT has racked up four straight positive earnings surprises. Starting in the March 2011 quarter with a $0.04 beat, the company continued to beat the lone estimate in the following quarter.

Another analyst picked up coverage in the September 2011 quarter giving a little more meaning to the Zacks Consensus Estimate. That didn't make much difference when the company reported earnings as they beat by a penny.

CHMT Recently Reported Earnings

On February 27, 2012 the company reported revenue of $677 million slightly below estimates and nearly equivalent to the year ago period. In addition, earnings per share came in at $0.26 up from $0.01 posted a year ago and $0.15 ahead of the Zacks Consensus Estimate. As a result, the stock moved higher by more than 8%.

Earnings Estimates Bumped Up

Following the most recent earnings report, analysts bumped up their earnings estimates for 2012. The Zacks Consensus Estimate for 2012 EPS moved from $1.00 in January 2012 to the current level of $1.31.

Valuations

CHMT hit our value screen due to its relatively low PE and price to book. The trailing (13.5x) and forward (11.5x) PE carry a slight premium to the industry averages of 11.4x and 10.2x, respectively. There is a sizeable discount in the price to book multiple for CHMT when compared to the industry average. A 1.4x multiple for price to book is just what value investors look for, especially when the industry average is 2.1x.

The Chart

A quick look at the chart shows that the stock has participated in the most recent rally. Moving from just under $11 at the beginning of the year to as much as $16 of late. Value investors may shy away from a stock that has moved that much over just a few months, but the valuation metrics make the stock attractive no matter what the recent movement has been. CHMT is a Zacks #1 Rank (Strong Buy).

Aggressive Growth Link

Back on December 30, 2011 CHMT was the subject of an aggressive growth Rank Buy article at Zacks. Since that time the stock has appreciated by approximately 35%.

Chemura: Aggressive Growth Stock Dec 30, 2011

Brian Bolan is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Home Run Investor service