A few major chemical companies are among a barrage of players gearing up to report their quarterly numbers on Jan 26. The chemical industry falls under the broader Basic Materials sector, which is among the 16 Zacks sectors. The sector is projected to witness flat earnings growth in the fourth quarter on 2.5% lower sales, per the latest Earnings Preview.
The chemical industry is gradually gaining strength on the back of continued momentum in the automotive space and a rebound in the housing sector – two major end-use markets for chemicals.
Chemical companies continue to shift their focus to attractive growth markets in an effort to cut their exposure to other businesses that are grappling with weak demand. The industry is also seeing a pick-up in consolidation activities as chemical makers are increasingly looking for cost synergy opportunities and enhanced operational scale in a still-difficult global economic environment.
Notwithstanding a slew of headwinds including concerns over China’s economy, Eurozone’s tepid recovery and weak demand in the energy space, the industry’s recovery momentum is expected to continue this year, supported by continued strength in the light vehicles market, positive trends in the construction space and significant shale-linked capital investment.
We take a sneak peek into four chemical companies that are gearing up to report their quarterly results on Jan 26.
The Dow Chemical Company (DOW - Free Report) will report fourth-quarter results ahead of the bell. The company is expected to come up with a positive earnings surprise as it carries a favorable Zacks Rank #3 (Hold) and has an Earnings ESP of +4.55%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The U.S. chemical kingpin has an impressive surprise history, having surpassed the Zacks Consensus Estimate in the trailing four quarters with an average beat of 16.40%. Dow remains committed to its productivity improvement and portfolio management actions. While currency and challenges in the agriculture market remain as headwinds, the company’s cost control and growth actions are expected to support earnings in the to-be-reported quarter. (Read more: Dow Chemical Q4 Earnings: Stock to Post a Beat Again?)
Eastman Chemical Co. (EMN - Free Report) , which will report fourth-quarter earnings numbers after the bell, has an Earnings ESP of -1.35% as the Most Accurate Estimate stands at $1.46 while the Zacks Consensus Estimate is pegged at $1.48. The stock carries a Zacks Rank #3, but its negative ESP makes surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.
Eastman Chemical surpassed the Zacks Consensus Estimate in three of the trailing four quarters with an average beat of 5.99%. While Eastman Chemical faces pricing and currency headwinds, it should gain from synergies of acquisitions, cost-cutting actions and continued momentum in its specialty businesses. (Read more: Eastman Chemical Q4 Earnings: What's in the Cards?)
Praxair Inc. (PX - Free Report) will report fourth-quarter results before the bell. The company has an Earnings ESP of -0.71% as the Most Accurate estimate stands at $1.40 while the Zacks Consensus Estimate is pegged at $1.41. The stock carries a Zacks Rank #3, but its negative ESP makes surprise prediction difficult. Praxair posted better-than-expected results in three of the last four quarters while recording in-line results in one with an average positive earnings surprise of 1.32%.
While the company is exposed to risks arising from higher production costs, stiff competition, and high debt levels, it should gain from growing application of industrial gases and its organic and inorganic growth actions. (Read more: Praxair to Report Q4 Earnings: What's in the Cards?)
Ashland Global Holdings Inc. (ASH - Free Report) will report its fiscal first-quarter numbers after of the bell. The company has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 99 cents. The company carries a Zacks Rank #5 (Strong Sell), which we caution against ahead of the earnings release.
Ashland beat estimates in two of the trailing four quarters while missing in the other two, with an average negative surprise of 0.66%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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 few major chemical companies are among a barrage of players gearing up to report their quarterly numbers on Jan 26. The chemical industry falls under the broader Basic Materials sector, which is among the 16 Zacks sectors. The sector is projected to witness flat earnings growth in the fourth quarter on 2.5% lower sales, per the latest Earnings Preview.
The chemical industry is gradually gaining strength on the back of continued momentum in the automotive space and a rebound in the housing sector – two major end-use markets for chemicals.
Chemical companies continue to shift their focus to attractive growth markets in an effort to cut their exposure to other businesses that are grappling with weak demand. The industry is also seeing a pick-up in consolidation activities as chemical makers are increasingly looking for cost synergy opportunities and enhanced operational scale in a still-difficult global economic environment.
Notwithstanding a slew of headwinds including concerns over China’s economy, Eurozone’s tepid recovery and weak demand in the energy space, the industry’s recovery momentum is expected to continue this year, supported by continued strength in the light vehicles market, positive trends in the construction space and significant shale-linked capital investment.
We take a sneak peek into four chemical companies that are gearing up to report their quarterly results on Jan 26.
The Dow Chemical Company (DOW - Free Report) will report fourth-quarter results ahead of the bell. The company is expected to come up with a positive earnings surprise as it carries a favorable Zacks Rank #3 (Hold) and has an Earnings ESP of +4.55%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The U.S. chemical kingpin has an impressive surprise history, having surpassed the Zacks Consensus Estimate in the trailing four quarters with an average beat of 16.40%. Dow remains committed to its productivity improvement and portfolio management actions. While currency and challenges in the agriculture market remain as headwinds, the company’s cost control and growth actions are expected to support earnings in the to-be-reported quarter. (Read more: Dow Chemical Q4 Earnings: Stock to Post a Beat Again?)
Eastman Chemical Co. (EMN - Free Report) , which will report fourth-quarter earnings numbers after the bell, has an Earnings ESP of -1.35% as the Most Accurate Estimate stands at $1.46 while the Zacks Consensus Estimate is pegged at $1.48. The stock carries a Zacks Rank #3, but its negative ESP makes surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.
Eastman Chemical surpassed the Zacks Consensus Estimate in three of the trailing four quarters with an average beat of 5.99%. While Eastman Chemical faces pricing and currency headwinds, it should gain from synergies of acquisitions, cost-cutting actions and continued momentum in its specialty businesses. (Read more: Eastman Chemical Q4 Earnings: What's in the Cards?)
Praxair Inc. (PX - Free Report) will report fourth-quarter results before the bell. The company has an Earnings ESP of -0.71% as the Most Accurate estimate stands at $1.40 while the Zacks Consensus Estimate is pegged at $1.41. The stock carries a Zacks Rank #3, but its negative ESP makes surprise prediction difficult. Praxair posted better-than-expected results in three of the last four quarters while recording in-line results in one with an average positive earnings surprise of 1.32%.
While the company is exposed to risks arising from higher production costs, stiff competition, and high debt levels, it should gain from growing application of industrial gases and its organic and inorganic growth actions. (Read more: Praxair to Report Q4 Earnings: What's in the Cards?)
Ashland Global Holdings Inc. (ASH - Free Report) will report its fiscal first-quarter numbers after of the bell. The company has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 99 cents. The company carries a Zacks Rank #5 (Strong Sell), which we caution against ahead of the earnings release.
Ashland beat estimates in two of the trailing four quarters while missing in the other two, with an average negative surprise of 0.66%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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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