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6 Reasons that Make PolyOne (POL) an Attractive Pick Now
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PolyOne Corporation’s stock looks promising at the moment. The company, which currently carries a Zacks Rank #2 (Buy), is a leading provider of specialized polymer materials. We are positive on the company’s prospects and believe that the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead.
What’s Working in Favor of PolyOne?
Positive Earnings Surprise History: PolyOne has an impressive earnings surprise history. The company has outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering a positive average earnings surprise of 5.50%.
Estimates Moving Up: Annual estimates for PolyOne have moved north over the past 60 days, reflecting analysts’ confidence on the stock. Over this period, the Zacks Consensus Estimate for 2017 has increased by around 0.4% to $2.30 per share. The Zacks Consensus Estimate for 2018 has also moved up 1.6% over the same timeframe to $2.62.
Superior Return on Equity (ROE): PolyOne’s ROE of 24.5%, as compared with the industry average of 17.4%, manifests the company’s efficiency in utilizing shareholder’s funds.
Healthy Growth Prospects: The Zacks Consensus Estimate for earnings for PolyOne for 2017 is currently pegged at $2.30, reflecting an expected year-over-year growth of 8%. Moreover, earnings are expected to register a 13.7% growth in 2018. The stock also has a long-term (3-5 years) expected earnings per share (EPS) growth rate of roughly 9.8%, just above the industry average of 9.6%.
An Outperformer: PolyOne has outperformed the Zacks categorized Chemicals-Plastics industry over the past six months. The company’s shares have gained around 9.5% over this period, compared with roughly 8.2% decline recorded by the industry.
Growth Drivers: PolyOne is gaining from its acquisitions which are contributing to its top line growth. Its sales rose 6% year over year to nearly $900 million in the first quarter of 2017 with acquisitions contributing 2% to the top line.
The company should continue to benefit from its commercial investments, sustained focus on innovation and efforts to improve its capital structure. PolyOne had around $158 million in cash and total available liquidity of more than $550 million at the end of the first quarter, which is available for organic investment initiatives and bolt-on specialty acquisitions.
PolyOne recently purchased specialty inks maker, Rutland Holding Company. Rutland is a leading manufacturer of screen printing inks for the apparel market. The acquisition expands PolyOne’s portfolio of specialty color, additives and inks solutions. PolyOne sees the Rutland acquisition to be immediately accretive to its earnings.
Huntsman has an expected long-term earnings growth of 7%.
BASF has an expected long-term earnings growth of 8.9%.
Chemours has an expected long-term earnings growth of 15.5%.
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6 Reasons that Make PolyOne (POL) an Attractive Pick Now
PolyOne Corporation’s stock looks promising at the moment. The company, which currently carries a Zacks Rank #2 (Buy), is a leading provider of specialized polymer materials. We are positive on the company’s prospects and believe that the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead.
What’s Working in Favor of PolyOne?
Positive Earnings Surprise History: PolyOne has an impressive earnings surprise history. The company has outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering a positive average earnings surprise of 5.50%.
Estimates Moving Up: Annual estimates for PolyOne have moved north over the past 60 days, reflecting analysts’ confidence on the stock. Over this period, the Zacks Consensus Estimate for 2017 has increased by around 0.4% to $2.30 per share. The Zacks Consensus Estimate for 2018 has also moved up 1.6% over the same timeframe to $2.62.
Superior Return on Equity (ROE): PolyOne’s ROE of 24.5%, as compared with the industry average of 17.4%, manifests the company’s efficiency in utilizing shareholder’s funds.
Healthy Growth Prospects: The Zacks Consensus Estimate for earnings for PolyOne for 2017 is currently pegged at $2.30, reflecting an expected year-over-year growth of 8%. Moreover, earnings are expected to register a 13.7% growth in 2018. The stock also has a long-term (3-5 years) expected earnings per share (EPS) growth rate of roughly 9.8%, just above the industry average of 9.6%.
An Outperformer: PolyOne has outperformed the Zacks categorized Chemicals-Plastics industry over the past six months. The company’s shares have gained around 9.5% over this period, compared with roughly 8.2% decline recorded by the industry.
Growth Drivers: PolyOne is gaining from its acquisitions which are contributing to its top line growth. Its sales rose 6% year over year to nearly $900 million in the first quarter of 2017 with acquisitions contributing 2% to the top line.
The company should continue to benefit from its commercial investments, sustained focus on innovation and efforts to improve its capital structure. PolyOne had around $158 million in cash and total available liquidity of more than $550 million at the end of the first quarter, which is available for organic investment initiatives and bolt-on specialty acquisitions.
PolyOne recently purchased specialty inks maker, Rutland Holding Company. Rutland is a leading manufacturer of screen printing inks for the apparel market. The acquisition expands PolyOne’s portfolio of specialty color, additives and inks solutions. PolyOne sees the Rutland acquisition to be immediately accretive to its earnings.
PolyOne Corporation Price and Consensus
PolyOne Corporation Price and Consensus | PolyOne Corporation Quote
Other Stocks to Consider
Other top-ranked stocks in the chemical space include Huntsman Corporation (HUN - Free Report) , BASF SE (BASFY - Free Report) and The Chemours Company (CC - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Huntsman has an expected long-term earnings growth of 7%.
BASF has an expected long-term earnings growth of 8.9%.
Chemours has an expected long-term earnings growth of 15.5%.
3 Top Picks to Ride the Hottest Tech Trend
Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy...
Last year, it was generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. Download Report with 3 Top Tech Stocks >>