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Chemours (CC) Up 34% in 3 Months: What's Driving the Stock?

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Shares of The Chemours Company (CC - Free Report) have shot up around 34% over the last three months. The company has also significantly outperformed its industry’s gain of roughly 10.7% to over the same time frame.  

Chemours has a market cap of roughly $10.1 billion and average volume of shares traded in the last three months is around 2,069.6K. The company has an expected long-term earnings per share growth of around 15.5%.

Let’s take a look into the factors that are driving this chemical maker’s stock.



 

Driving Factors

Strong second-quarter results and upbeat outlook have provided a boost to the company’s shares. Chemours recorded net income of $161 million or 84 cents per share in second-quarter 2017, against net loss of $18 million or 10 cents reported a year ago. Net sales for the quarter were $1,588 million, up roughly 15% year over year. Sales were driven by higher volumes across the board.

Chemours, in August, raised its full-year 2017 outlook on the back of solid second-quarter results. The company now expects adjusted EBITDA for 2017 to be $1.3-$1.4 billion compared with its earlier view of $1.15-$1.25 billion.

The revised guidance takes into account the gains from Chemours’ transformation plan initiatives, reduced transformation-related costs in the second half and strength across the company’s major end markets.  

Chemours is expected to benefit from strength across its portfolio and improving end market conditions through the remainder of 2017. It is also well placed to gain from its sustained efforts to reduce costs, improve cash generation and strengthen the balance sheet. Moreover, the company is anticipated to continue to benefit from increased customer adoption of both Ti-Pure titanium dioxide and Opteon refrigerants.

Chemours is a Zacks Rank #1 (Strong Buy) stock.

Other Stocks to Consider

Other stocks in the basic materials space worth considering include Kraton Corporation , FMC Corporation (FMC - 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.

FMC has expected long-term earnings growth of 11.3%.

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

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