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U.S. Silica (SLCA) Touches Fresh 52-Week High at $52.50
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Shares of U.S. Silica Holdings, Inc. (SLCA - Free Report) scaled a fresh 52-week high of $52.50 last Friday, before retracing to close the day at $52.43. The Maryland-based producer of commercial silica has delivered an impressive year-to-date return of roughly 181%. Average volume of shares traded over the last three months is roughly 1,901.7K. U.S. Silica also has a long-term expected EPS growth of 11%.
Factors to Consider
U.S. Silica’s adjusted loss of 13 cents per share for the third quarter of 2016 was narrower than the Zacks Consensus Estimate of a loss of 19 cents. The company, in its third-quarter call, said that it will not provide any guidance for adjusted EBITDA until it gets a clear picture of business activity levels and related demand for its products.
While U.S. Silica is facing sustained challenges in its Oil and Gas segment, it remains focused on cost reduction and operational efficiency improvement. The company is executing many cost improvement projects throughout its supply chain. It has delivered more than $50 million in cost savings on a year over year basis this year.
Moreover, the company remains focused on preserving capital, improving customer satisfaction and boosting its market position. U.S. Silica also looks to spend capital prudently, giving priority to critical maintenance projects.
U.S. Silica’s strong balance sheet also provides it with ample opportunities for making strategic investments that will help expand the life of its flagship operation and ensure its long-term competitive position in the market. The company’s decision to raise capital earlier this year enhanced its financial flexibility and reinforced its balance sheet.
As part of its investment strategy, U.S. Silica purchased the NBR Sand unit of New Birmingham Inc., a privately-owned industrial minerals and logistics company. The acquisition allows the company to expand its product offering and capacity in the regional sands market, and enhance customer satisfaction. U.S. Silica is optimistic about the growth of the regional sand market and is looking to create a strong foothold in the same.
Moreover, U.S. Silica has acquired logistics solutions provider, Sandbox Enterprises LLC. The acquisition, which provides U.S. Silica with unmatched logistics capabilities, allows the company to offer its customers significantly improved transportation and operating efficiencies and meaningful cost savings relative to existing proppant delivery systems. U.S. Silica expects the acquisition to deliver earnings accretion of between 20 cents and 30 cents per share in 2017.
Chemours has an expected earnings growth of around 44.7% for the current year.
Koppers Holdings has an expected earnings growth of 62.4% for the current year.
FMC has an expected earnings growth of around 14.1% for the current year.
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U.S. Silica (SLCA) Touches Fresh 52-Week High at $52.50
Shares of U.S. Silica Holdings, Inc. (SLCA - Free Report) scaled a fresh 52-week high of $52.50 last Friday, before retracing to close the day at $52.43. The Maryland-based producer of commercial silica has delivered an impressive year-to-date return of roughly 181%. Average volume of shares traded over the last three months is roughly 1,901.7K. U.S. Silica also has a long-term expected EPS growth of 11%.
Factors to Consider
U.S. Silica’s adjusted loss of 13 cents per share for the third quarter of 2016 was narrower than the Zacks Consensus Estimate of a loss of 19 cents. The company, in its third-quarter call, said that it will not provide any guidance for adjusted EBITDA until it gets a clear picture of business activity levels and related demand for its products.
While U.S. Silica is facing sustained challenges in its Oil and Gas segment, it remains focused on cost reduction and operational efficiency improvement. The company is executing many cost improvement projects throughout its supply chain. It has delivered more than $50 million in cost savings on a year over year basis this year.
Moreover, the company remains focused on preserving capital, improving customer satisfaction and boosting its market position. U.S. Silica also looks to spend capital prudently, giving priority to critical maintenance projects.
U.S. Silica’s strong balance sheet also provides it with ample opportunities for making strategic investments that will help expand the life of its flagship operation and ensure its long-term competitive position in the market. The company’s decision to raise capital earlier this year enhanced its financial flexibility and reinforced its balance sheet.
As part of its investment strategy, U.S. Silica purchased the NBR Sand unit of New Birmingham Inc., a privately-owned industrial minerals and logistics company. The acquisition allows the company to expand its product offering and capacity in the regional sands market, and enhance customer satisfaction. U.S. Silica is optimistic about the growth of the regional sand market and is looking to create a strong foothold in the same.
Moreover, U.S. Silica has acquired logistics solutions provider, Sandbox Enterprises LLC. The acquisition, which provides U.S. Silica with unmatched logistics capabilities, allows the company to offer its customers significantly improved transportation and operating efficiencies and meaningful cost savings relative to existing proppant delivery systems. U.S. Silica expects the acquisition to deliver earnings accretion of between 20 cents and 30 cents per share in 2017.
U.S. Silica is a Zacks Rank #2 (Buy).
US SILICA HOLDI Price and Consensus
US SILICA HOLDI Price and Consensus | US SILICA HOLDI Quote
Other Stocks to Consider
Other well-placed companies in the basic materials space include The Chemours Company (CC - Free Report) , Koppers Holdings Inc. (KOP - Free Report) and FMC Corporation (FMC - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chemours has an expected earnings growth of around 44.7% for the current year.
Koppers Holdings has an expected earnings growth of 62.4% for the current year.
FMC has an expected earnings growth of around 14.1% for the current year.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>