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FMC Corp (FMC) Up 58% in a Year: What's Behind the Rally?
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Shares of FMC Corporation (FMC - Free Report) have rallied around 58% over a year. The company has also significantly outperformed its industry’s gain of roughly 29% to over the same time frame.
FMC Corp., a Zacks Rank #3 (Hold) stock, has a market cap of roughly $12.6 billion and average volume of shares traded in the last three months is around 1,030K. The company has an expected long-term earnings per share growth of 11.3%, higher than the industry average of 10%.
Let’s take a look into the factors that are driving this chemical company.
Driving Factors
FMC Corp. is gaining from its strategic investments, acquisitions and efforts to expand its market position and strengthen its portfolio. Upbeat prospects for the company’s Lithium unit have also provided a boost to its shares.
FMC Corp. is witnessing strong momentum in its Lithium unit. The company is expanding its lithium hydroxide production capacity. It is executing this expansion in three phases. The move is based on the growing demand for electric vehicles.
FMC Corp. has executed its Phase I lithium hydroxide expansion on time and budget, achieving 9,000 metric tons of production run rate in September 2017. The Phase 2 expansion is expected to add another 12,000 metric tons of capacity. The lithium business is expected to deliver strong earnings growth for full-year 2017.
Acquisitions are also adding strength to the company’s agricultural business. The acquisition of a major portion of DuPont's Crop Protection business has provided a significant growth platform for FMC’s Agricultural Solutions unit. The buyout significantly increases the company’s presence in Asia and Europe.
FMC Corp., in November, raised its earnings outlook for 2017 factoring in the impact of two months contribution from the DuPont Crop Protection acquisition. It now sees adjusted earnings in the range of $2.59-$2.69 per share for the year, up from the prior view of $2.30-$2.50.
Huntsman has an expected long-term earnings growth of 8%. The stock has gained around 74% over a year.
Kronos has an expected long-term earnings growth of 5%. The stock has gained around 124% over a year.
Methanex has an expected long-term earnings growth of 15%. Its shares are up roughly 32% over a year.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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FMC Corp (FMC) Up 58% in a Year: What's Behind the Rally?
Shares of FMC Corporation (FMC - Free Report) have rallied around 58% over a year. The company has also significantly outperformed its industry’s gain of roughly 29% to over the same time frame.
FMC Corp., a Zacks Rank #3 (Hold) stock, has a market cap of roughly $12.6 billion and average volume of shares traded in the last three months is around 1,030K. The company has an expected long-term earnings per share growth of 11.3%, higher than the industry average of 10%.
Let’s take a look into the factors that are driving this chemical company.
Driving Factors
FMC Corp. is gaining from its strategic investments, acquisitions and efforts to expand its market position and strengthen its portfolio. Upbeat prospects for the company’s Lithium unit have also provided a boost to its shares.
FMC Corp. is witnessing strong momentum in its Lithium unit. The company is expanding its lithium hydroxide production capacity. It is executing this expansion in three phases. The move is based on the growing demand for electric vehicles.
FMC Corp. has executed its Phase I lithium hydroxide expansion on time and budget, achieving 9,000 metric tons of production run rate in September 2017. The Phase 2 expansion is expected to add another 12,000 metric tons of capacity. The lithium business is expected to deliver strong earnings growth for full-year 2017.
Acquisitions are also adding strength to the company’s agricultural business. The acquisition of a major portion of DuPont's Crop Protection business has provided a significant growth platform for FMC’s Agricultural Solutions unit. The buyout significantly increases the company’s presence in Asia and Europe.
FMC Corp., in November, raised its earnings outlook for 2017 factoring in the impact of two months contribution from the DuPont Crop Protection acquisition. It now sees adjusted earnings in the range of $2.59-$2.69 per share for the year, up from the prior view of $2.30-$2.50.
FMC Corporation Price and Consensus
FMC Corporation Price and Consensus | FMC Corporation Quote
Other Stocks to Consider
Stocks worth considering in the basic materials space include Huntsman Corporation (HUN - Free Report) , Kronos Worldwide, Inc. (KRO - Free Report) and Methanex Corporation (MEOH - Free Report) , all carrying 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 8%. The stock has gained around 74% over a year.
Kronos has an expected long-term earnings growth of 5%. The stock has gained around 124% over a year.
Methanex has an expected long-term earnings growth of 15%. Its shares are up roughly 32% over a year.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>