A number of chemical companies are among the bunch of S&P 500 stocks lined up to report their quarterly numbers this week. The chemical industry falls under the broader Basic Materials sector. The sector is one among the nine out of the 16 Zacks sectors that are expected to witness negative earnings growth in the second quarter with an expected earnings decline of 13.9% on 7.7% lower sales, per the latest Earnings Trends report.
Based on the earnings scorecard as of Jul 22, 25% of the sector participants on the S&P 500 index have already reported their quarterly numbers. Earnings for these companies are up 1.2% from the same period last year. Revenues have declined 4.8%.
Chemical makers are gaining from strategic measures including expansion into high-growth markets, aggressive cost management and productivity actions as well as acquisitions. However, the industry is not devoid of challenges given a still weak agriculture market, currency headwinds, weak demand in the energy space (given depressed oil prices) and slowdown in China.
Let’s take a peek into five chemical companies that are slated to report their quarterly results on Jul 27.
Cabot Corporation (CBT - Free Report) , which will report fiscal third-quarter earnings results after the bell, has an Earnings ESP of -3.26% as the Most Accurate estimate stands at 89 cents while the Zacks Consensus Estimate is pegged at 92 cents. The company carries a favorable Zacks Rank #3 (Hold), but its negative ESP makes surprise prediction difficult. The company missed the Zacks Consensus Estimate in three of the trailing four quarters, with an average negative surprise of 1.59%.
While Cabot is on track with cost reduction through restructuring, it is facing a number of macroeconomic challenges. Its Specialty Fluids segment continues to be affected by low project activity caused by a downturn in the oil and gas industry. Moreover, its Reinforcement Segment continues to face stiff competition in China and South America. (Read more: Will Cabot Corp. Disappoint Estimates in Q3 Earnings? )
Ferro Corporation is slated to report second-quarter results after the close. It has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 27 cents. So, surprise prediction is difficult despite the company’s Zacks Rank #2 (Buy). The company beat the Zacks Consensus Estimate in three of the last four quarters, with an average positive surprise of 1.40%.
Huntsman Corporation (HUN - Free Report) will report second-quarter results before the bell. The company is expected to post a positive earnings surprise as it carries a Zacks Rank #1 (Strong Buy) and has an Earnings ESP of +7.84%. The company outperformed the Zacks Consensus Estimate in the trailing four quarters, with an average beat of 60.03%.
NewMarket Corporation (NEU - Free Report) will report second-quarter numbers after the bell. The company has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at $5.46. The stock carries a favorable Zacks Rank #3, but its 0.00% ESP makes surprise prediction difficult. NewMarket beat the Zacks Consensus Estimate in three of the last four quarters with an average positive surprise of 4.44%.
Quaker Chemical Corporation (KWR - Free Report) , which will report second-quarter numbers after the close, has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.09. The stock carries a favorable Zacks Rank #3, but its 0.00% ESP makes surprise prediction difficult. Quaker beat estimates in three of the last four quarters with an average positive surprise of 6.04%.
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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 >>
A number of chemical companies are among the bunch of S&P 500 stocks lined up to report their quarterly numbers this week. The chemical industry falls under the broader Basic Materials sector. The sector is one among the nine out of the 16 Zacks sectors that are expected to witness negative earnings growth in the second quarter with an expected earnings decline of 13.9% on 7.7% lower sales, per the latest Earnings Trends report.
Based on the earnings scorecard as of Jul 22, 25% of the sector participants on the S&P 500 index have already reported their quarterly numbers. Earnings for these companies are up 1.2% from the same period last year. Revenues have declined 4.8%.
Chemical makers are gaining from strategic measures including expansion into high-growth markets, aggressive cost management and productivity actions as well as acquisitions. However, the industry is not devoid of challenges given a still weak agriculture market, currency headwinds, weak demand in the energy space (given depressed oil prices) and slowdown in China.
Let’s take a peek into five chemical companies that are slated to report their quarterly results on Jul 27.
Cabot Corporation (CBT - Free Report) , which will report fiscal third-quarter earnings results after the bell, has an Earnings ESP of -3.26% as the Most Accurate estimate stands at 89 cents while the Zacks Consensus Estimate is pegged at 92 cents. The company carries a favorable Zacks Rank #3 (Hold), but its negative ESP makes surprise prediction difficult. The company missed the Zacks Consensus Estimate in three of the trailing four quarters, with an average negative surprise of 1.59%.
While Cabot is on track with cost reduction through restructuring, it is facing a number of macroeconomic challenges. Its Specialty Fluids segment continues to be affected by low project activity caused by a downturn in the oil and gas industry. Moreover, its Reinforcement Segment continues to face stiff competition in China and South America. (Read more: Will Cabot Corp. Disappoint Estimates in Q3 Earnings? )
Ferro Corporation is slated to report second-quarter results after the close. It has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 27 cents. So, surprise prediction is difficult despite the company’s Zacks Rank #2 (Buy). The company beat the Zacks Consensus Estimate in three of the last four quarters, with an average positive surprise of 1.40%.
Huntsman Corporation (HUN - Free Report) will report second-quarter results before the bell. The company is expected to post a positive earnings surprise as it carries a Zacks Rank #1 (Strong Buy) and has an Earnings ESP of +7.84%. The company outperformed the Zacks Consensus Estimate in the trailing four quarters, with an average beat of 60.03%.
NewMarket Corporation (NEU - Free Report) will report second-quarter numbers after the bell. The company has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at $5.46. The stock carries a favorable Zacks Rank #3, but its 0.00% ESP makes surprise prediction difficult. NewMarket beat the Zacks Consensus Estimate in three of the last four quarters with an average positive surprise of 4.44%.
Quaker Chemical Corporation (KWR - Free Report) , which will report second-quarter numbers after the close, has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.09. The stock carries a favorable Zacks Rank #3, but its 0.00% ESP makes surprise prediction difficult. Quaker beat estimates in three of the last four quarters with an average positive surprise of 6.04%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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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