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Here's Why Innospec (IOSP) Should Be in Your Portfolio Now
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Shares of Innospec Inc. (IOSP - Free Report) , a global specialty chemicals company, have been performing well of late. With strong fundamentals and solid long-term growth opportunities, this Zacks Rank #2 (Buy) stock can be a solid bet now. The company has an estimated earnings growth rate of 4.10% and 4.35% for fiscal 2017 and 2018 respectively.
Positive Earnings Surprise History
Innospec has an impressive earnings surprise history. The company has outpaced the Zacks Consensus Estimate in three of the trailing four quarters, delivering a positive average earnings surprise of 8.07%.
Financials and Shareholders Returns
The total cash and cash equivalents available with the company at the end of first quarter was $45.4 million and long-term debt of approximately $228.7 million. The long-term debt-to-capital ratio of Innospec is 25.49%, lower than industry average of 43.72%.
The company hiked its semi-annual dividend by 15% to 38 cents per common share for first-half 2017.
Share Price Performance
In the last one year, Innospec’s stock has gained around 30.8%, outperforming the Zacks classified Chemicals-Diversified sub-industry’s growth of 14.3%.
Valuation
Going by the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) multiple, Innospec is currently trading at trailing 12-month EV/EBITDA multiple of 10.45X, slightly cheaper compared with the industry average of 10.54X.
Growth Drivers
In the first quarter, Innospec noted that demand across Performance Chemicals, Oilfield Services and Octane Additives segments improved greatly. While sales of Performance Chemicals jumped three-fold year over year on the back of recent acquisitions, revenues from Oilfield Services and Octane Additives units surged 84% and 61% year over year, respectively, in the quarter.
Innospec is well positioned to record strong growth in all its businesses. The company will continue to integrate its recent acquisitions and will also pursue other strategic buyouts to boost its portfolio.
Kronos has an expected long-term earnings growth of 5%.
ArcelorMittal has an expected long-term earnings growth of 11.4%.
Chemours Company has an expected long-term earnings growth of 15.5%.
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Here's Why Innospec (IOSP) Should Be in Your Portfolio Now
Shares of Innospec Inc. (IOSP - Free Report) , a global specialty chemicals company, have been performing well of late. With strong fundamentals and solid long-term growth opportunities, this Zacks Rank #2 (Buy) stock can be a solid bet now. The company has an estimated earnings growth rate of 4.10% and 4.35% for fiscal 2017 and 2018 respectively.
Positive Earnings Surprise History
Innospec has an impressive earnings surprise history. The company has outpaced the Zacks Consensus Estimate in three of the trailing four quarters, delivering a positive average earnings surprise of 8.07%.
Financials and Shareholders Returns
The total cash and cash equivalents available with the company at the end of first quarter was $45.4 million and long-term debt of approximately $228.7 million. The long-term debt-to-capital ratio of Innospec is 25.49%, lower than industry average of 43.72%.
The company hiked its semi-annual dividend by 15% to 38 cents per common share for first-half 2017.
Share Price Performance
In the last one year, Innospec’s stock has gained around 30.8%, outperforming the Zacks classified Chemicals-Diversified sub-industry’s growth of 14.3%.
Valuation
Going by the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) multiple, Innospec is currently trading at trailing 12-month EV/EBITDA multiple of 10.45X, slightly cheaper compared with the industry average of 10.54X.
Growth Drivers
In the first quarter, Innospec noted that demand across Performance Chemicals, Oilfield Services and Octane Additives segments improved greatly. While sales of Performance Chemicals jumped three-fold year over year on the back of recent acquisitions, revenues from Oilfield Services and Octane Additives units surged 84% and 61% year over year, respectively, in the quarter.
Innospec is well positioned to record strong growth in all its businesses. The company will continue to integrate its recent acquisitions and will also pursue other strategic buyouts to boost its portfolio.
Other Stocks to Consider
Other top ranked stocks in the basic materials space include Kronos Worldwide Inc. (KRO - Free Report) , ArcelorMittal (MT - Free Report) and The Chemours Company (CC - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Kronos has an expected long-term earnings growth of 5%.
ArcelorMittal has an expected long-term earnings growth of 11.4%.
Chemours Company has an expected long-term earnings growth of 15.5%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>