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Cabot (CBT) Expands E2C Line With First Product in New Series

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Cabot Corporation (CBT - Free Report) recently launched its latest Engineered Elastomer Composites (E2C) product, FX9390. It is part of the new E2C Foundation series, which offers multi-dimensional performance for a variety of tire types. The company stated that FX9390 is designed to significantly enhance balanced performance across heat buildup, cut/ chunk/chip resistance and abrasion resistance in off-the-road mining tires.

Further, when FX9390 is combined with other E2C solutions, it provides flexibility for tire compound formulation to the mining customers. It offers a high-performance elastomer composite solution for mining and retreading applications. The product is a pre-mixed material delivered in highly friable bales that supports production flexibility and simplifies material handling.

FX9390 can also be integrated into a tire-maker’s production line without additional capital investment. This enables producers to evolve their business models by expanding performance, lower operational barriers and shorten development cycles. The latest addition to E2C family of solutions highlights Cabot’s commitment to assist tire producers reach performance goals, while enhancing sustainability performance.

Shares of Cabot have lost 12.4% in the past year against the industry’s 1% rise.

Earlier this month, the company issued an update on business results for fourth-quarter fiscal 2020. It stated that volumes continued to recover in the fiscal fourth quarter on a sequential comparison basis.

For the fiscal fourth quarter, Cabot anticipates cash flow from operations to be around $100 million. The same is expected to be around $250 million for the second half of fiscal 2020, higher than the previously-announced expectation of $200 million.

Zacks Rank & Key Picks

Cabot currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Agnico Eagle Mines Limited (AEM - Free Report) , Barrick Gold Corporation (GOLD - Free Report) and New Gold Inc. (NGD - Free Report) . While Agnico Eagle and Barrick sports a Zacks Rank #1 (Strong Buy), New Gold carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Agnico Eagle has an expected earnings growth rate of 103.1% for 2020. Its shares have returned 23.5% in the past year.

Barrick has an expected earnings growth rate of 115.7% for 2020. The company’s shares have gained 53.4% in the past year.

New Gold has an expected earnings growth rate of 100% for 2020. The company’s shares have surged 123.5% in the past year.

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