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Ashland (ASH) Hits New 52-Week High: What's Driving it?
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Shares of Ashland Global Holdings Inc. (ASH - Free Report) scaled a fresh 52-week high of $79.68 on May 22, before eventually closing the day at $78.41.
The company has a market cap of roughly $4.9 billion. Average volume of shares traded in the last three months was around 838.5K. Ashland has an expected long-term earnings per share growth rate of 10%.
The stock has moved up 9.7% in the past three months, outperforming the industry’s 2.7% rise.
Driving Factors
Forecast-topping second-quarter fiscal 2018 results, upbeat outlook, dividend hike and strategic initiatives are contributing to the rally in Ashland’s shares.
The company reported net profit of $73 million or $1.15 per share in second-quarter fiscal 2018 compared with net income of $92 million or $1.47. Barring one-time items, adjusted earnings came in at $1.06 per share, which surpassed the Zacks Consensus Estimate of 84 cents.
Revenues went up 21% year over year to $974 million, also beating the Zacks Consensus Estimate of $960 million.
Ashland raised its adjusted earnings guidance for fiscal 2018 to $3.30-$3.50 per share, up from $2.90-$3.10 expected earlier. It expects to generate free cash flows of more than $220 million in fiscal 2018, which remains unchanged from the prior guidance.
The company projects adjusted earnings in the range of 95 cents to $1.05 per share for third-quarter fiscal 2018.
Recently, Ashland’s board declared a quarterly cash dividend to 25 cents per share, up 11% from the previous payout. The dividend is payable Jun 15, 2018, to stockholders of record at the close of business on Jun 1.
Ashland is exploring strategic alternatives for its Composites segment, as well as for the butanediol (BDO) manufacturing facility in Marl, Germany, and associated merchant Intermediates and Solvents products. The move is likely to benefit the company by focusing on its portfolio of Specialty Ingredients.
Moreover, Ashland should also gain from the appropriate pricing actions in response to raw material cost inflation. The company increased prices of selective products, including BDO and derivatives prices. The move is driven by sustained rise in the costs of major raw materials.
Chemours has an expected long-term earnings growth rate of 15.5%. Its shares have gained 23.5% in a year.
Westlake Chemical has an expected long-term earnings growth rate of 12.2%. Its shares have rallied 94.4% in a year.
Huntsman has an expected long-term earnings growth rate of 8.3%. Its shares have moved up 30.1% in a year.
The Hottest Tech Mega-Trend of All
Last year, it generated $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 regular investors who make the right trades early.
Image: Bigstock
Ashland (ASH) Hits New 52-Week High: What's Driving it?
Shares of Ashland Global Holdings Inc. (ASH - Free Report) scaled a fresh 52-week high of $79.68 on May 22, before eventually closing the day at $78.41.
The company has a market cap of roughly $4.9 billion. Average volume of shares traded in the last three months was around 838.5K. Ashland has an expected long-term earnings per share growth rate of 10%.
The stock has moved up 9.7% in the past three months, outperforming the industry’s 2.7% rise.
Driving Factors
Forecast-topping second-quarter fiscal 2018 results, upbeat outlook, dividend hike and strategic initiatives are contributing to the rally in Ashland’s shares.
The company reported net profit of $73 million or $1.15 per share in second-quarter fiscal 2018 compared with net income of $92 million or $1.47. Barring one-time items, adjusted earnings came in at $1.06 per share, which surpassed the Zacks Consensus Estimate of 84 cents.
Revenues went up 21% year over year to $974 million, also beating the Zacks Consensus Estimate of $960 million.
Ashland raised its adjusted earnings guidance for fiscal 2018 to $3.30-$3.50 per share, up from $2.90-$3.10 expected earlier. It expects to generate free cash flows of more than $220 million in fiscal 2018, which remains unchanged from the prior guidance.
The company projects adjusted earnings in the range of 95 cents to $1.05 per share for third-quarter fiscal 2018.
Recently, Ashland’s board declared a quarterly cash dividend to 25 cents per share, up 11% from the previous payout. The dividend is payable Jun 15, 2018, to stockholders of record at the close of business on Jun 1.
Ashland is exploring strategic alternatives for its Composites segment, as well as for the butanediol (BDO) manufacturing facility in Marl, Germany, and associated merchant Intermediates and Solvents products. The move is likely to benefit the company by focusing on its portfolio of Specialty Ingredients.
Moreover, Ashland should also gain from the appropriate pricing actions in response to raw material cost inflation. The company increased prices of selective products, including BDO and derivatives prices. The move is driven by sustained rise in the costs of major raw materials.
Ashland Global Holdings Inc. Price and Consensus
Ashland Global Holdings Inc. Price and Consensus | Ashland Global Holdings Inc. Quote
Zacks Rank & Stocks to Consider
Ashland currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include The Chemours Company (CC - Free Report) , Westlake Chemical Corporation (WLK - Free Report) and Huntsman Corporation (HUN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chemours has an expected long-term earnings growth rate of 15.5%. Its shares have gained 23.5% in a year.
Westlake Chemical has an expected long-term earnings growth rate of 12.2%. Its shares have rallied 94.4% in a year.
Huntsman has an expected long-term earnings growth rate of 8.3%. Its shares have moved up 30.1% in a year.
The Hottest Tech Mega-Trend of All
Last year, it generated $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 regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>