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Koppers (KOP) Up 22% in 3 Months: What's Driving the Stock?
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Shares of Koppers Holdings Inc. (KOP - Free Report) have gained around 22% over the last three months. The company has also outperformed its industry’s gain of roughly 11.4% to over the same time frame.
Koppers has a market cap of roughly $963 million and average volume of shares traded in the last three months is around 117.4K. The company has an expected long-term earnings per share growth of 18%, higher than the industry average of 10%.
Let’s take a look into the factors that are driving this Zacks Rank #1 (Strong Buy) stock.
Driving Factors
Solid third-quarter results and upbeat outlook for 2017 have contributed to a rally in the company’s shares. Koppers’ adjusted earnings of $1.43 per share for the third quarter outstripped the Zacks Consensus Estimate of 88 cents, translating into a positive earnings surprise of 62.5%.
Revenues rose around 4% year over year to $384.8 million in the quarter, driven by strong gains in the Carbon Materials and Chemicals (CMC) division. Sales also topped the Zacks Consensus Estimate of $363 million.
Koppers raised its earnings outlook for 2017 factoring in solid performance year to date. The company now sees adjusted earnings in the range of $3.70 to $3.80 per share for 2017, up from its prior view of $3.10 to $3.30 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 around $195 million from roughly $185 million expected earlier. 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 CMC and Performance Chemicals (PC) units in the balance of 2017. The CMC unit is gaining from favorable market conditions and savings benefits from the company’s restructuring actions.
While the PC division faces headwinds from raw material cost inflation, it is likely to gain from continued strong demand. The unit is expected to benefit from positive trends in the repair and remodeling market.
Westlake has an expected long-term earnings growth of 8.4%. Its shares are up roughly 62% year to date.
Ingevity has an expected long-term earnings growth of 12%. The stock has gained around 34% year to date.
Kraton has an expected earnings growth of 25.4% for the current year. Its shares are up roughly 67% year to date.
Zacks’ Best Private Investment Ideas
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Koppers (KOP) Up 22% in 3 Months: What's Driving the Stock?
Shares of Koppers Holdings Inc. (KOP - Free Report) have gained around 22% over the last three months. The company has also outperformed its industry’s gain of roughly 11.4% to over the same time frame.
Koppers has a market cap of roughly $963 million and average volume of shares traded in the last three months is around 117.4K. The company has an expected long-term earnings per share growth of 18%, higher than the industry average of 10%.
Let’s take a look into the factors that are driving this Zacks Rank #1 (Strong Buy) stock.
Driving Factors
Solid third-quarter results and upbeat outlook for 2017 have contributed to a rally in the company’s shares. Koppers’ adjusted earnings of $1.43 per share for the third quarter outstripped the Zacks Consensus Estimate of 88 cents, translating into a positive earnings surprise of 62.5%.
Revenues rose around 4% year over year to $384.8 million in the quarter, driven by strong gains in the Carbon Materials and Chemicals (CMC) division. Sales also topped the Zacks Consensus Estimate of $363 million.
Koppers raised its earnings outlook for 2017 factoring in solid performance year to date. The company now sees adjusted earnings in the range of $3.70 to $3.80 per share for 2017, up from its prior view of $3.10 to $3.30 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 around $195 million from roughly $185 million expected earlier. 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 CMC and Performance Chemicals (PC) units in the balance of 2017. The CMC unit is gaining from favorable market conditions and savings benefits from the company’s restructuring actions.
While the PC division faces headwinds from raw material cost inflation, it is likely to gain from continued strong demand. The unit is expected to benefit 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 top-ranked companies in the basic materials space include Westlake Chemical Corporation (WLK - Free Report) , Ingevity Corporation (NGVT - Free Report) and Kraton Corporation , all sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Westlake has an expected long-term earnings growth of 8.4%. Its shares are up roughly 62% year to date.
Ingevity has an expected long-term earnings growth of 12%. The stock has gained around 34% year to date.
Kraton has an expected earnings growth of 25.4% for the current year. Its shares are up roughly 67% year to date.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>