Back to top

Value

Zacks Equity Research

LSB Industries

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

LSB Industries Inc. has delivered earnings surprises in three of the last four quarters with an average beat of 7.7%. Most recently, this manufacturer of climate control and chemical products outperformed the Zacks Consensus Estimate by 26.1% in its second quarter. In addition, the Zacks #1 Rank (Strong Buy) stock trades at a P/E multiple of just 13.9, which makes it an attractive pick for value investors.

Solid Second Quarter

On August 8, LSB Industries reported second quarter adjusted earnings of $1.11 per share, which trumped the Zacks Consensus Estimate of 88 cents. Revenues declined 11.2% year over year to $209.3 million, but exceeded the Zacks Consensus Estimate of $189 million. The year-over-year decrease was due to lower sales in both its Chemical Business and Climate Control Business segments.

Chemical Business sales were negatively impacted due to an explosion at the company’s El Dorado chemical plant and unplanned downtime at its Pryor chemical plant. Lower revenues from the Climate Control Business were due to a decline in sales of geothermal and water source heat pumps, hydronic fan coil sales, and other heating, ventilation and air conditioning sales.

Despite lower sales, the company is making progress and is now geared up to make its El Dorado plant operational in the coming quarters. Moreover, the company has completed the repairs to the urea reactor at the Pryor Facility. The company also has strong agriculture fundamentals, making the stock attractive.

Rising Earnings Momentum

The Zacks Consensus Estimate for fiscal 2012 has moved up 6.4% to $3.14 per share over the last 60 days. For fiscal 2013, the Zacks Consensus Estimate has increased 4.8% to $4.60 per share, representing a year-over-year increase of 46.3%.

Plenty of Value

Shares of LSB Industries have performed reasonably well so far this year, generating a healthy year-to-date return of roughly 47.4%.

In addition to a low P/E multiple, the stock has an attractive P/B ratio of 2.9 (a P/E ratio below 15.0 and a P/B multiple lower than 3.0 generally indicate value).

Chart Showing Consistent Rise

Shares of LSB Industries have been rising since mid June 2012, and reached a 52-week high of $44.29 on September 27, 2012. Moreover, the stock is currently trading above its 50- and 200-day moving averages, which stand at $38.31 and $34.58, respectively.

Volume is fairly strong, averaging roughly 167K daily. The year-to-date return for the stock is 55.22% compared with the S&P 500’s return of 15.38%.

LSB Industries is a manufacturing and marketing company with principal business activities that consist of the manufacture and sale of commercial and residential climate control products, such as geothermal and water source heat pumps, hydronic fan coils, modular chillers and large custom air handlers. The company is also engaged in the manufacture and sale of chemical products for the agriculture, mining and industrial markets. LSB Industries has a market cap of roughly $978 million.


Want More of Our Best Recommendations?

Zacks' Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Then each week he hand-selects the most compelling trades and serves them up to you in a new program called Zacks Confidential.

Learn More>>


Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%