Back to top

Image: Bigstock

Koppers (KOP) Up 20% in 3 Months: What's Driving the Stock?

Read MoreHide Full Article

Shares of Koppers Holdings Inc. (KOP - Free Report) have gained around 20% over the last three months. The company has also outperformed its industry’s gain of roughly 10% to over the same time frame.  

Koppers has a market cap of roughly $872 million and average volume of shares traded in the last three months is around 119.7K. The company has an expected long-term earnings per share growth of 18%, higher than the industry average of 10.3%.

Let’s take a look into the factors that are driving this Zacks Rank #1 (Strong Buy) stock.



 

Driving Factors

Strong second-quarter results and upbeat outlook for 2017 have contributed to a rally in the company’s shares. Koppers delivered a positive earnings surprise of 28.3% in the second quarter.

The company, in August, raised its earnings outlook for 2017 factoring in solid performance in the first half. The company now sees adjusted earnings in the range of $3.10 to $3.30 per share for 2017, compared with its earlier expectations of $2.80 to $3.00 per share. The revision is partly due to lower than expected effective tax rate.

The company also raised its adjusted EBITDA forecast for 2017 to $185 million from its prior view of $180 million. The guidance also reflects an increase from $174 million recorded in the prior year.

Koppers is expected to gain from sustained strong performance of its Performance Chemicals (PC) and Carbon Materials and Chemicals (CMC) units in the balance of 2017. The CMC unit is benefiting from lower costs resulting from the company’s restructuring actions.

Moreover, the PC division is seeing strong demand for water-borne wood treatment preservative products. The unit is expected to gain from positive trends in the repair and remodeling market.

Koppers Holdings Inc. Price and Consensus

 

Koppers Holdings Inc. Price and Consensus | Koppers Holdings Inc. Quote

Other Stocks to Consider

Other stocks in the basic materials space worth considering include Kraton Corporation , Kronos Worldwide, Inc. (KRO - Free Report) and Orion Engineered Carbons, S.A. (OEC - Free Report) , all sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kraton has expected earnings growth of 7.2% for the current year.

Kronos has expected long-term earnings growth of 5%.

Orion Engineered Carbons has expected earnings growth of 19% for the current year.

Will You Make a Fortune on the Shift to Electric Cars?
                                                                                                                               Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>


Unique Zacks Analysis of Your Chosen Ticker


Pick one free report - opportunity may be withdrawn at any time


Kronos Worldwide Inc (KRO) - $25 value - yours FREE >>

Koppers Holdings Inc. (KOP) - $25 value - yours FREE >>

Orion S.A. (OEC) - $25 value - yours FREE >>

Published in