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Here's Why it is Worth Buying Advanced Emissions (ADES) Now
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Advanced Emissions Solutions, Inc. currently seems to be a smart choice for investors seeking exposure in the pollution control space. Solid fundamentals and positive revision in earnings estimates are reflective of healthy growth potential of the stock.
This Highlands Ranch, CO-based company currently sports a Zacks Rank #1 (Strong Buy). It belongs to the Zacks Pollution Control industry, currently placed in the top 11% (with Zacks Industry Rank #29) of more than 250 Zacks industries. Notably, the top 50% of the Zacks-ranked industries tend to outperform the bottom 50% by a factor of more than 2 to 1.
We believe that stringent government regulations, pollution-related risks and growing demand in emerging nations are aiding pollution control equipment and services.
Below we discussed why investing in Advanced Emissions will be a smart choice.
Share Price Performance, Impressive Earnings Outlook: Market sentiments seem to be working in favor of Advanced Emissions over time. In the past six months, the company’s share price has gained 2.2% against the industry’s decline of 5.2%.
It is worth mentioning here that the company’s shares have increased 4.8% since the release of fourth-quarter 2018 results on Mar 18, 2019. The quarter’s earnings of 36 cents per share were 9.1% above the year-ago figure.
For 2019, Advanced Emissions anticipates gaining from solid offerings of emission control solutions and synergistic benefits of acquired assets.
In the past 30 days, earnings estimates for 2019 and 2020 have been revised upward, reflecting positive sentiments about the company’s growth prospects. Currently, the Zacks Consensus Estimate is pegged at $3.39 for 2019 and $5.90 for 2020, reflecting growth of 35.6% and 42.2% from the respective 30-day-ago tallies. In addition, estimates for the first quarter of 2019 have grown from 39 cents per share to 64 cents.
Advanced Emissions Solutions, Inc. Price and Consensus
Refined Coal Business: Advanced Emissions undertook several measures — including healthy customer-relationship, operational efficiency, improvement in the sales channel, reduction of expenses and gaining from refined coal tax equity market — to strengthen the refined coal business.
At the end of 2018, the company was operating 19 refined coal facilities, with combined capacity of 55-65 MT/year. Investments in such facilities are anticipated to grow in the years ahead, with a target of reaching 28 facilities (with combined capacity of roughly 100 MT/year) between 2019 and 2021.
In addition, the company anticipates generating cash flow of $200-$225 million from the refined coal business between 2019 and 2021.
Shareholder-Friendly Policies: Advanced Emissions remains committed to rewarding shareholders handsomely through dividend payments and share buybacks. In 2018, the company repurchased roughly 2.4 million shares for $25.3 million and distributed dividends totaling $20.2 million.
It is worth mentioning here that the company announced to have received authorization to buy back $20 million worth shares in November 2018.
Acquisitive Nature: Over time, Advanced Emissions fortified the product portfolio and leveraged business opportunities through the addition of assets.
Notably, the company acquired ADA Carbon Solutions, LLC — specializing in making Powdered Activated Carbon solutions for use in industrial and potable water markets as well as coal-fired power plant — in December 2018. The buyout has been strengthening Advanced Emissions’ Power Generation and Industrials segment.
In the past 60 days, earnings estimates for all these three stocks have improved for the current year. Further, average earnings surprise for the last four quarters was a positive 46.55% for DXP Enterprises, 2.27% for Sun Hydraulics and 4.96% for Roper.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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Here's Why it is Worth Buying Advanced Emissions (ADES) Now
Advanced Emissions Solutions, Inc. currently seems to be a smart choice for investors seeking exposure in the pollution control space. Solid fundamentals and positive revision in earnings estimates are reflective of healthy growth potential of the stock.
This Highlands Ranch, CO-based company currently sports a Zacks Rank #1 (Strong Buy). It belongs to the Zacks Pollution Control industry, currently placed in the top 11% (with Zacks Industry Rank #29) of more than 250 Zacks industries. Notably, the top 50% of the Zacks-ranked industries tend to outperform the bottom 50% by a factor of more than 2 to 1.
We believe that stringent government regulations, pollution-related risks and growing demand in emerging nations are aiding pollution control equipment and services.
Below we discussed why investing in Advanced Emissions will be a smart choice.
Share Price Performance, Impressive Earnings Outlook: Market sentiments seem to be working in favor of Advanced Emissions over time. In the past six months, the company’s share price has gained 2.2% against the industry’s decline of 5.2%.
It is worth mentioning here that the company’s shares have increased 4.8% since the release of fourth-quarter 2018 results on Mar 18, 2019. The quarter’s earnings of 36 cents per share were 9.1% above the year-ago figure.
For 2019, Advanced Emissions anticipates gaining from solid offerings of emission control solutions and synergistic benefits of acquired assets.
In the past 30 days, earnings estimates for 2019 and 2020 have been revised upward, reflecting positive sentiments about the company’s growth prospects. Currently, the Zacks Consensus Estimate is pegged at $3.39 for 2019 and $5.90 for 2020, reflecting growth of 35.6% and 42.2% from the respective 30-day-ago tallies. In addition, estimates for the first quarter of 2019 have grown from 39 cents per share to 64 cents.
Advanced Emissions Solutions, Inc. Price and Consensus
Advanced Emissions Solutions, Inc. Price and Consensus | Advanced Emissions Solutions, Inc. Quote
Refined Coal Business: Advanced Emissions undertook several measures — including healthy customer-relationship, operational efficiency, improvement in the sales channel, reduction of expenses and gaining from refined coal tax equity market — to strengthen the refined coal business.
At the end of 2018, the company was operating 19 refined coal facilities, with combined capacity of 55-65 MT/year. Investments in such facilities are anticipated to grow in the years ahead, with a target of reaching 28 facilities (with combined capacity of roughly 100 MT/year) between 2019 and 2021.
In addition, the company anticipates generating cash flow of $200-$225 million from the refined coal business between 2019 and 2021.
Shareholder-Friendly Policies: Advanced Emissions remains committed to rewarding shareholders handsomely through dividend payments and share buybacks. In 2018, the company repurchased roughly 2.4 million shares for $25.3 million and distributed dividends totaling $20.2 million.
It is worth mentioning here that the company announced to have received authorization to buy back $20 million worth shares in November 2018.
Acquisitive Nature: Over time, Advanced Emissions fortified the product portfolio and leveraged business opportunities through the addition of assets.
Notably, the company acquired ADA Carbon Solutions, LLC — specializing in making Powdered Activated Carbon solutions for use in industrial and potable water markets as well as coal-fired power plant — in December 2018. The buyout has been strengthening Advanced Emissions’ Power Generation and Industrials segment.
Other Key Picks
Some other top-ranked stocks in the Zacks Industrial Products sector are DXP Enterprises, Inc. (DXPE - Free Report) , Sun Hydraulics Corporation and Roper Technologies, Inc. (ROP - Free Report) . All these stocks currently sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, earnings estimates for all these three stocks have improved for the current year. Further, average earnings surprise for the last four quarters was a positive 46.55% for DXP Enterprises, 2.27% for Sun Hydraulics and 4.96% for Roper.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>