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Versum (VSM) Now a Strong Buy on Growth Drivers, '17 View
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On Mar 23, Zacks Investment Research upgraded Versum Materials, Inc. to a Zacks Rank #1 (Strong Buy). Going by the Zacks model, companies sporting a Zacks Rank #1 have strong chances of outperforming the broader market.
Since the release of first-quarter fiscal 2017 (ended Dec 31, 2016) results on Feb 13, the company’s shares yielded 2.58% return, outperforming the gain of 1.28% recorded by the Zacks categorized Chemicals Specialty industry.
Why the Upgrade?
Market sentiments have been favoring Versum Materials since the beginning of 2017. To start with, the company reported better-than-expected results in the fiscal first quarter, with earnings of 47 cents per share surpassing the Zacks Consensus Estimate of 40 cents by 17.50%.
For fiscal 2017, Versum Materials anticipates sales to be within $990−$1,050 million, higher than $970 million generated in fiscal 2016. Also, adjusted earnings before interest, tax, depreciation and amortization are predicted to be roughly $330−$350 million, above the year-ago tally of $326.9 million.
In addition, Versum Materials intends to expand the manufacturing capacity at its Delivery Systems and Service (DS&S) headquarters in Pennsylvania. Moreover, the company recently initiated a quarterly cash dividend of 5 cents per share. The first quarterly payments will be made on Apr 19 to shareholders on record as of Apr 5.
Investors seem to be optimistic about Versum Materials’ future prospects, as evident from positive revision in earnings estimates. Over the last 60 days, the Zacks Consensus Estimate for the stock grew 4.2% to $1.75 for fiscal 2017 and 4.8% to $1.89 for fiscal 2018.
Other Stocks to Consider
Versum Materials has a market capitalization of $3.2 billion. Other stocks worth considering in the chemical specialty industry include KMG Chemicals, Inc. , Novozymes A/S (NVZMY - Free Report) and Valvoline Inc. (VVV - Free Report) . While KMG Chemicals sports a Zacks Rank #1, both Novozymes and Valvoline carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KMG Chemicals reported better-than-expected results in the last quarter, with a positive earnings surprise of 35.71%. Also, bottom-line expectations for fiscal 2017 and fiscal 2018 improved over the past 60 days.
Novozymes A/S’ earnings estimates for 2017 and 2018 have been revised upward, over the last 60 days.
Valvoline has witnessed positive revisions in earnings estimates for 2017 and 2018, over the past 60 days. Also, it has an average earnings surprise of 3.65%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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Versum (VSM) Now a Strong Buy on Growth Drivers, '17 View
On Mar 23, Zacks Investment Research upgraded Versum Materials, Inc. to a Zacks Rank #1 (Strong Buy). Going by the Zacks model, companies sporting a Zacks Rank #1 have strong chances of outperforming the broader market.
Since the release of first-quarter fiscal 2017 (ended Dec 31, 2016) results on Feb 13, the company’s shares yielded 2.58% return, outperforming the gain of 1.28% recorded by the Zacks categorized Chemicals Specialty industry.
Why the Upgrade?
Market sentiments have been favoring Versum Materials since the beginning of 2017. To start with, the company reported better-than-expected results in the fiscal first quarter, with earnings of 47 cents per share surpassing the Zacks Consensus Estimate of 40 cents by 17.50%.
For fiscal 2017, Versum Materials anticipates sales to be within $990−$1,050 million, higher than $970 million generated in fiscal 2016. Also, adjusted earnings before interest, tax, depreciation and amortization are predicted to be roughly $330−$350 million, above the year-ago tally of $326.9 million.
In addition, Versum Materials intends to expand the manufacturing capacity at its Delivery Systems and Service (DS&S) headquarters in Pennsylvania. Moreover, the company recently initiated a quarterly cash dividend of 5 cents per share. The first quarterly payments will be made on Apr 19 to shareholders on record as of Apr 5.
Investors seem to be optimistic about Versum Materials’ future prospects, as evident from positive revision in earnings estimates. Over the last 60 days, the Zacks Consensus Estimate for the stock grew 4.2% to $1.75 for fiscal 2017 and 4.8% to $1.89 for fiscal 2018.
Other Stocks to Consider
Versum Materials has a market capitalization of $3.2 billion. Other stocks worth considering in the chemical specialty industry include KMG Chemicals, Inc. , Novozymes A/S (NVZMY - Free Report) and Valvoline Inc. (VVV - Free Report) . While KMG Chemicals sports a Zacks Rank #1, both Novozymes and Valvoline carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KMG Chemicals reported better-than-expected results in the last quarter, with a positive earnings surprise of 35.71%. Also, bottom-line expectations for fiscal 2017 and fiscal 2018 improved over the past 60 days.
Novozymes A/S’ earnings estimates for 2017 and 2018 have been revised upward, over the last 60 days.
Valvoline has witnessed positive revisions in earnings estimates for 2017 and 2018, over the past 60 days. Also, it has an average earnings surprise of 3.65%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging
phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>