Back to top

Image: Bigstock

Bear Of The Day: Cabot Corporation (CBT)

Read MoreHide Full Article

Cabot Corporation (CBT - Free Report) is a Zacks Rank #5 (Strong Sell) and is the Bear of the Day today.  Let's take a look at why this stock has the lowest of all Zacks Ranks.


Cabot Corporation is a leading global specialty chemicals and performance materials company headquartered in Boston, Massachusetts, USA. Our businesses deliver a broad range of products and solutions to customers in every corner of the globe, serving key industries such as transportation, infrastructure, environment and consumer. Cabot Corporation provides performance solutions that solve customers' challenges today while preparing them to meet tomorrow's needs. Cabot is a leading provider of rubber and specialty carbon blacks, activated carbon, inkjet colorants, cesium formate drilling fluids, fumed silica, aerogel, and elastomer composites.

Earnings History

As I look at the detailed esitmates page, I see an ok earnings history for CBT. The company has topped the Zacks Consensus Estimate in 2 of the last four quarters and the other two quarters were misses.

The average surprise over the last four quarters is -1.92%, so the beats were just a little smaller than the loss.  We don't want to see that as investors.

Recent Earnings

I see the reent beat of a penny also came with guidance that was below consensus.  THe company now expects to see FY19 EPS of $4.05 - $4.30, and that is below the prior guide of $4.20 - $4.60.  

Estimate Revisions

Following the beat and guide lower, estimates have dropped.  This quarter the Zacks Consensus has dropped from $1.25 to $1.00.  That is a big move lower.  Next quarter has only seen a small move of 2 cents lower.

The full year estimate is at $4.13, but that is down from the $4.39 level it was at prior to earnings.

Next year has also taken a hit.  The Zacks Consensus Estimate has slipped from $4.93 to $4.66.



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 >>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Cabot Corporation (CBT) - free report >>