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KMG Chemicals (KMG) Hits New 52-Week High on Solid Prospects
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Shares of KMG Chemicals, Inc. reached a new 52-week high of $46.80 during its trading session on Mar 31. This apex improved upon the last 52-week high of $44.77 on Mar 14.
Over the last one year, shares of the company yielded 112.1% return, outperforming the gain of 12.84% seen by the Zacks categorized Chemical Specialty industry.
On Mar 31, KMG Chemicals closed its trading session at $46.07, yielding year-to-date return of 18.51%. The trading volume for the session was 0.21 million shares. Positive earnings estimate revisions for fiscal 2017 and fiscal 2018 indicate the stock’s potential for further price appreciation.
Growth Drivers
KMG Chemicals’ financial performance was impressive in three of the last four quarters, as evident from an average positive earnings surprise of 10.63%. In second-quarter fiscal 2017 (ended Jan 31), the company’s earnings of 57 cents per share surpassed the Zacks Consensus Estimate by 35.71%.
KMG Chemicals anticipates strong growth in the second half of the year. It raised its fiscal 2017 earnings before interest, tax, depreciation and amortization (EBITDA) forecast to $51−$53 million from the earlier prediction of $47−$49 million. Also, sales are now predicted within $315−$320 million, up from $300−$305 million.
In Jan 2017, KMG Chemicals acquired Sealweld, a premier supplier of high-performance products and services to global pipeline operators. The acquisition, in sync with the company’s growth policies, will strengthen its industrial lubricants business as well as be immediately accretive to adjusted EBITDA and adjusted earnings per share. Also, the company believes in rewarding its shareholders handsomely through dividend payments.
Over the last 60 days, the Zacks Consensus Estimate for KMG Chemicals increased 11.5% to $2.03 for fiscal 2017 and 12.1% to $2.22 for fiscal 2018. These estimates represent year-over-year growth of 25.78% for fiscal 2017 and 9.38% for fiscal 2018.
Some other favorably ranked stocks in the chemical industry include Versum Materials, Inc. , Valvoline Inc. (VVV - Free Report) and Novozymes A/S (NVZMY - Free Report) . While Versum Materials sports a Zacks Rank #1, both Valvoline and Novozymes carry a Zacks Rank #2 (Buy).
Versum Materials’ earnings estimates for fiscal 2017 and fiscal 2018 were revised upward, over the last 60 days. Also, results were better-than-expected with a positive earnings surprise of 17.50% in the last quarter.
Valvoline reported better-than-expected results in the last quarter, with a positive earnings surprise of 16.67%. Also, bottom-line expectations for fiscal 2017 and fiscal 2018 improved over the past 60 days.
Novozymes witnessed positive revisions in earnings estimates for 2017 and 2018, over the past 60 days.
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KMG Chemicals (KMG) Hits New 52-Week High on Solid Prospects
Shares of KMG Chemicals, Inc. reached a new 52-week high of $46.80 during its trading session on Mar 31. This apex improved upon the last 52-week high of $44.77 on Mar 14.
Over the last one year, shares of the company yielded 112.1% return, outperforming the gain of 12.84% seen by the Zacks categorized Chemical Specialty industry.
On Mar 31, KMG Chemicals closed its trading session at $46.07, yielding year-to-date return of 18.51%. The trading volume for the session was 0.21 million shares. Positive earnings estimate revisions for fiscal 2017 and fiscal 2018 indicate the stock’s potential for further price appreciation.
Growth Drivers
KMG Chemicals’ financial performance was impressive in three of the last four quarters, as evident from an average positive earnings surprise of 10.63%. In second-quarter fiscal 2017 (ended Jan 31), the company’s earnings of 57 cents per share surpassed the Zacks Consensus Estimate by 35.71%.
KMG Chemicals anticipates strong growth in the second half of the year. It raised its fiscal 2017 earnings before interest, tax, depreciation and amortization (EBITDA) forecast to $51−$53 million from the earlier prediction of $47−$49 million. Also, sales are now predicted within $315−$320 million, up from $300−$305 million.
In Jan 2017, KMG Chemicals acquired Sealweld, a premier supplier of high-performance products and services to global pipeline operators. The acquisition, in sync with the company’s growth policies, will strengthen its industrial lubricants business as well as be immediately accretive to adjusted EBITDA and adjusted earnings per share. Also, the company believes in rewarding its shareholders handsomely through dividend payments.
Over the last 60 days, the Zacks Consensus Estimate for KMG Chemicals increased 11.5% to $2.03 for fiscal 2017 and 12.1% to $2.22 for fiscal 2018. These estimates represent year-over-year growth of 25.78% for fiscal 2017 and 9.38% for fiscal 2018.
Zacks Rank & Other Stocks to Consider
With a market capitalization of $547.7 million, KMG Chemicals currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other favorably ranked stocks in the chemical industry include Versum Materials, Inc. , Valvoline Inc. (VVV - Free Report) and Novozymes A/S (NVZMY - Free Report) . While Versum Materials sports a Zacks Rank #1, both Valvoline and Novozymes carry a Zacks Rank #2 (Buy).
Versum Materials’ earnings estimates for fiscal 2017 and fiscal 2018 were revised upward, over the last 60 days. Also, results were better-than-expected with a positive earnings surprise of 17.50% in the last quarter.
Valvoline reported better-than-expected results in the last quarter, with a positive earnings surprise of 16.67%. Also, bottom-line expectations for fiscal 2017 and fiscal 2018 improved over the past 60 days.
Novozymes witnessed positive revisions in earnings estimates for 2017 and 2018, over the past 60 days.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>