Celanese Corporation (CE - Free Report) has announced that it has acquired a certain technology linked with the production of polyacetal (POM) products, from Grupa Azoty S.A. of Tarnow, Poland, after the latter decided to discontinue its POM manufacturing. The takeover is expected to conclude in early July 2021.
Per the transaction, Celanese will acquire all existing Tarnoform contracts to cater to Azoty’s customers. However, the terms of the transaction do not include the transfer of any of Azoty’s employees, tangible assets, manufacturing units or sales offices. Nevertheless, this comes with the exception of certain equipment transfers falling in the purview of intellectual property transfer.
Celanese noted that the takeover will enable it to offer its assets to Azoty’s customers, thereby creating room for volume increment and opening doors to an established POM customer base and POM technology in Tarnoform. Its Engineered Materials business is a pivotal lever of growth and this particular acquisition will fuel the success of the business unit.
Shares of Celanese have soared 79.3% in a year against the industry’s decline of 14.1%. The estimated earnings growth rate for the company for the current year is pegged at 71.2%.
The company, in its last-quarter earnings call, stated that demand for its Engineered Materials and Acetyl Chain products remains strong in most end markets. It expects adjusted earnings of roughly $4.00 per share, for the second quarter, factoring in current industry dynamics, higher inventory costs from Uri and minimal turnaround requirements. Moreover, Celanese now expects adjusted earnings of $12.50-$13.50 per share for 2021.
Zacks Rank & Other Key Picks
Currently, Celanese carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Olin Corporation (OLN - Free Report) , Tronox Holdings PLC (TROX - Free Report) and Univar Solutions Inc. , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olin has a projected earnings growth rate of 506.7% for the current year. The company’s shares have surged 278.7% in a year.
Tronox has a projected earnings growth rate of 242.9% for the current year. The company’s shares have seen a jump of 190.8% in a year.
Univar has a projected earnings growth rate of 35.2% for the current year. The company’s shares have grown 49% in a year.
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Celanese Corporation (CE - Free Report) has announced that it has acquired a certain technology linked with the production of polyacetal (POM) products, from Grupa Azoty S.A. of Tarnow, Poland, after the latter decided to discontinue its POM manufacturing. The takeover is expected to conclude in early July 2021.
Per the transaction, Celanese will acquire all existing Tarnoform contracts to cater to Azoty’s customers. However, the terms of the transaction do not include the transfer of any of Azoty’s employees, tangible assets, manufacturing units or sales offices. Nevertheless, this comes with the exception of certain equipment transfers falling in the purview of intellectual property transfer.
Celanese noted that the takeover will enable it to offer its assets to Azoty’s customers, thereby creating room for volume increment and opening doors to an established POM customer base and POM technology in Tarnoform. Its Engineered Materials business is a pivotal lever of growth and this particular acquisition will fuel the success of the business unit.
Shares of Celanese have soared 79.3% in a year against the industry’s decline of 14.1%. The estimated earnings growth rate for the company for the current year is pegged at 71.2%.
The company, in its last-quarter earnings call, stated that demand for its Engineered Materials and Acetyl Chain products remains strong in most end markets. It expects adjusted earnings of roughly $4.00 per share, for the second quarter, factoring in current industry dynamics, higher inventory costs from Uri and minimal turnaround requirements. Moreover, Celanese now expects adjusted earnings of $12.50-$13.50 per share for 2021.
Zacks Rank & Other Key Picks
Currently, Celanese carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Olin Corporation (OLN - Free Report) , Tronox Holdings PLC (TROX - Free Report) and Univar Solutions Inc. , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olin has a projected earnings growth rate of 506.7% for the current year. The company’s shares have surged 278.7% in a year.
Tronox has a projected earnings growth rate of 242.9% for the current year. The company’s shares have seen a jump of 190.8% in a year.
Univar has a projected earnings growth rate of 35.2% for the current year. The company’s shares have grown 49% in a year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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