We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
5 Reasons That Make Ingevity (NGVT) a Solid Choice Now
Read MoreHide Full Article
Ingevity Corporation (NGVT - Free Report) has been performing well of late. The chemical maker, currently sporting a Zacks Rank #1 (Strong Buy), has seen its shares pop roughly 26% over the past three months.
If you haven’t taken advantage of the share price appreciation yet, the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead.
What Makes NGVT an Attractive Pick?
An Outperformer: Ingevity has outperformed the industry it belongs to over the past year. The company’s shares have shot up 75.1% compared with roughly 3% growth recorded by the industry.
Strong Q2 & Upbeat Outlook: Ingevity logged a profit of $46.7 million or $1.10 per share in second-quarter 2018, surging roughly 45% year over year. Adjusted earnings of $1.12 per share exceeded the Zacks Consensus Estimate of 99 cents.
The company’s revenues rose roughly 19% year over year to $308.6 million in the quarter, squeaking past the Zacks Consensus Estimate of $308.2 million.
Ingevity gained from strong organic growth, contributions of Georgia-Pacific pine chemicals acquisition, excellent commercial and operational execution and strong productivity.
Ingevity, in its second-quarter call, said that it remains optimistic about 2018 as it is witnessing the benefits of improving market conditions for its basic materials and high-value added technologies. The company increased the mid-point and narrowed the range for its 2018 guidance for adjusted EBITDA to $302-$314 million from $293-$307 million. The company also backed its sales guidance of between $1.10 billion and $1.13 billion for the year.
Estimates Moving Up: Annual estimates for Ingevity have moved north over the past month, reflecting analysts’ confidence on the stock. Over this period, the Zacks Consensus Estimate for 2018 has increased by around 5.8% to $3.66 per share. The Zacks Consensus Estimate for 2019 has also moved up 10.7% over the same timeframe to $4.67.
Positive Earnings Surprise History: Ingevity has an impressive earnings surprise history, outpacing the Zacks Consensus Estimate in each of the trailing four quarters, delivering a positive average earnings surprise of 20.6%.
Healthy Growth Prospects: The Zacks Consensus Estimate for earnings for 2018 for Ingevity is currently pegged at $3.66 per share, reflecting an expected year-over-year growth of 41.9%. Moreover, earnings are expected to register a 27.8% growth in 2019. The stock also has a long-term (three-five years) expected earnings per share (EPS) growth rate of roughly 12%, higher than the industry average of 11.6%.
KMG Chemicals has an expected long-term earnings growth rate of 28.5%. Its shares have gained roughly 37% over a year.
Huntsman has an expected long-term earnings growth rate of 8.5%. The company’s shares have rallied around 24% in a year.
Celanese has an expected long-term earnings growth rate of 10%. Its shares have shot up roughly 19% over a year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
5 Reasons That Make Ingevity (NGVT) a Solid Choice Now
Ingevity Corporation (NGVT - Free Report) has been performing well of late. The chemical maker, currently sporting a Zacks Rank #1 (Strong Buy), has seen its shares pop roughly 26% over the past three months.
If you haven’t taken advantage of the share price appreciation yet, the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead.
What Makes NGVT an Attractive Pick?
An Outperformer: Ingevity has outperformed the industry it belongs to over the past year. The company’s shares have shot up 75.1% compared with roughly 3% growth recorded by the industry.
Strong Q2 & Upbeat Outlook: Ingevity logged a profit of $46.7 million or $1.10 per share in second-quarter 2018, surging roughly 45% year over year. Adjusted earnings of $1.12 per share exceeded the Zacks Consensus Estimate of 99 cents.
The company’s revenues rose roughly 19% year over year to $308.6 million in the quarter, squeaking past the Zacks Consensus Estimate of $308.2 million.
Ingevity gained from strong organic growth, contributions of Georgia-Pacific pine chemicals acquisition, excellent commercial and operational execution and strong productivity.
Ingevity, in its second-quarter call, said that it remains optimistic about 2018 as it is witnessing the benefits of improving market conditions for its basic materials and high-value added technologies. The company increased the mid-point and narrowed the range for its 2018 guidance for adjusted EBITDA to $302-$314 million from $293-$307 million. The company also backed its sales guidance of between $1.10 billion and $1.13 billion for the year.
Estimates Moving Up: Annual estimates for Ingevity have moved north over the past month, reflecting analysts’ confidence on the stock. Over this period, the Zacks Consensus Estimate for 2018 has increased by around 5.8% to $3.66 per share. The Zacks Consensus Estimate for 2019 has also moved up 10.7% over the same timeframe to $4.67.
Positive Earnings Surprise History: Ingevity has an impressive earnings surprise history, outpacing the Zacks Consensus Estimate in each of the trailing four quarters, delivering a positive average earnings surprise of 20.6%.
Healthy Growth Prospects: The Zacks Consensus Estimate for earnings for 2018 for Ingevity is currently pegged at $3.66 per share, reflecting an expected year-over-year growth of 41.9%. Moreover, earnings are expected to register a 27.8% growth in 2019. The stock also has a long-term (three-five years) expected earnings per share (EPS) growth rate of roughly 12%, higher than the industry average of 11.6%.
Ingevity Corporation Price and Consensus
Ingevity Corporation Price and Consensus | Ingevity Corporation Quote
Other Stocks to Consider
Other top-ranked stocks worth considering in the basic materials space include KMG Chemicals, Inc. , Huntsman Corporation (HUN - Free Report) and Celanese Corporation (CE - Free Report) each carrying a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
KMG Chemicals has an expected long-term earnings growth rate of 28.5%. Its shares have gained roughly 37% over a year.
Huntsman has an expected long-term earnings growth rate of 8.5%. The company’s shares have rallied around 24% in a year.
Celanese has an expected long-term earnings growth rate of 10%. Its shares have shot up roughly 19% over a year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>