Zacks Investment Research upgraded Axiall Corporation to a Zacks Rank #1 (Strong Buy) on Jun 3, 2016. Going by the Zacks model, companies sporting a Zacks Rank #1 have strong chances of outperforming the broader market over the next few quarters.

Why the Upgrade?

Over the last four quarters, Axiall Corporation impressed its investors with better-than-expected results, with an average positive earnings surprise of 174.8%. Last quarter, the company reported earnings of 17 cents per share. The Zacks Consensus Estimate was of a loss of 29 cents per share. Despite top-line weakness, the company’s margin profile found support from an approximately 3.7% year-over-year fall in operating costs and expenses.

In addition to the quarter’s results, Axiall Corporation declared a quarterly dividend payment of 16 cents per share to shareholders on record as of Jun 24. Such regular disbursements clearly reflect the company’s commitment of rewarding its shareholders with healthy returns. Also, attempts by Westlake Chemical Corp. (WLK Quick QuoteWLK - Free Report) to acquire Axiall have to some extent triggered movements in the company’s share price.

Over the last 30 days, the Zacks Consensus Estimate for the stock has increased 16.3% to $1.00 for 2017, significantly above 1 cent estimated for 2016.

Other Stocks to Consider

Axiall Corporation currently has a market capitalization of approximately $1.6 billion. Two similarly-ranked stocks in the chemical industry include Albemarle Corporation (ALB Quick QuoteALB - Free Report) and Innospec Inc. (IOSP Quick QuoteIOSP - Free Report) .

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