Cabot Corporation (CBT - Free Report) inaugurated its latest fumed silica manufacturing plant in Wuhai, China. The state-of-the-art facility adds around 8,000 metric tons of fumed silica capacity annually to its global network. Also, it will serve the rapidly growing fumed silica market in the country.
The new facility enables the company to maintain its leadership and become the largest provider of fumed silica in the Chinese market.
In September 2016, Cabot entered into a joint venture (JV) with Inner Mongolia Hengyecheng Silicone Co., Ltd (HYC) to build the project. Cabot owns 80% equity interest in the facility and introduces advanced fumed silica production technology. Moreover, HYC will operate in a closed-loop medium with Cabot, which will maximize byproduct streams and eliminate waste. HYC also provides a long-term reliable source of feedstock.
Notably, Cabot is operating in China for more than three decades. It currently operates manufacturing facilities in Shanghai, Jiangxi, Xingtai and Tianjin.
Shares of Cabot have gained 6.2% year to date against the industry’s 20.5% decline.
Cabot expects adjusted earnings per share for fiscal 2019 to be flat year over year. The guidance reflects strong numbers for fiscal fourth quarter based on the startup of the company’s new fumed silica facility as well as targeted customer and incremental cost actions.
The company will continue to manage its capital spending and reduce working capital levels amid challenging business environment. It is also focused on generating strong cash flows.
Zacks Rank & Key Picks
Cabot currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Agnico Eagle Mines Limited (AEM - Free Report) and Arconic Inc , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kinross has an expected earnings growth rate of 160% for 2019. The company’s shares have surged 79.7% in the past year.
Agnico Eagle has projected earnings growth rate of 157.1% for the current year. The company’s shares have rallied 69.5% in a year’s time.
Arconic has an estimated earnings growth rate of 50% for the current year. Its shares have moved up 21.3% in the past year.
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Cabot Corporation (CBT - Free Report) inaugurated its latest fumed silica manufacturing plant in Wuhai, China. The state-of-the-art facility adds around 8,000 metric tons of fumed silica capacity annually to its global network. Also, it will serve the rapidly growing fumed silica market in the country.
The new facility enables the company to maintain its leadership and become the largest provider of fumed silica in the Chinese market.
In September 2016, Cabot entered into a joint venture (JV) with Inner Mongolia Hengyecheng Silicone Co., Ltd (HYC) to build the project. Cabot owns 80% equity interest in the facility and introduces advanced fumed silica production technology. Moreover, HYC will operate in a closed-loop medium with Cabot, which will maximize byproduct streams and eliminate waste. HYC also provides a long-term reliable source of feedstock.
Notably, Cabot is operating in China for more than three decades. It currently operates manufacturing facilities in Shanghai, Jiangxi, Xingtai and Tianjin.
Shares of Cabot have gained 6.2% year to date against the industry’s 20.5% decline.
Cabot expects adjusted earnings per share for fiscal 2019 to be flat year over year. The guidance reflects strong numbers for fiscal fourth quarter based on the startup of the company’s new fumed silica facility as well as targeted customer and incremental cost actions.
The company will continue to manage its capital spending and reduce working capital levels amid challenging business environment. It is also focused on generating strong cash flows.
Zacks Rank & Key Picks
Cabot currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Agnico Eagle Mines Limited (AEM - Free Report) and Arconic Inc , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kinross has an expected earnings growth rate of 160% for 2019. The company’s shares have surged 79.7% in the past year.
Agnico Eagle has projected earnings growth rate of 157.1% for the current year. The company’s shares have rallied 69.5% in a year’s time.
Arconic has an estimated earnings growth rate of 50% for the current year. Its shares have moved up 21.3% in the past year.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
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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