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Chemours (CC) Stock Rallies 79% in 6 Months: What's Driving It?

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The Chemours Company’s (CC - Free Report) shares have surged 79.4% over the past six months. The rally has resulted in the stock outperforming its industry’s rise of 32.6% over the same time frame.

Chemours, a Zacks Rank #1 (Strong Buy) stock, has a market cap of roughly $4.6 billion and average volume of shares traded in the last three months is around 1,009.1K.


 

 

Let’s delve deeper into the factors behind the stock’s price appreciation.

What’s Going in CC’s Favor?

Chemours is benefiting from a recovery in demand from the coronavirus-induced slowdown, strong execution and its cost-reduction measures. The company is seeing a recovery across all markets and regions.

In its Fluoroproducts segment, Chemours is witnessing improved customer demand for refrigerants, especially in the automotive sector on a rebound in automotive OEM production rates. It is also witnessing demand recovery in architectural coatings, laminates and plastics markets in its Titanium Technologies segment.

Chemours is also poised to benefit from increasing adoption of the Opteon platform and growing applications of fluoropolymers, especially in automotive, electronics and energy end-markets. The company is seeing higher demand for Opteon in mobile applications. It remains committed to drive Opteon adoption. It is ramping up production at the new low-cost Opteon Corpus Christi facility.

Moreover, the company stands to gain from its efforts to reduce costs. It is taking actions to cut costs by reducing overhead, discretionary spend and capital expenditure for 2020. These actions are helping it to generate strong cash flows. The company’s cost and operational improvement actions across its businesses are also expected to support its margins.

Earnings estimates for Chemours have also been going up over the past two months. The Zacks Consensus Estimate for 2020 has increased 6%. The consensus estimate for 2021 has also been revised 22.4% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.

 

 

Stocks to Consider

Other top-ranked stocks worth considering in the basic materials space include Fortescue Metals Group Limited (FSUGY - Free Report) , Impala Platinum Holdings Limited (IMPUY - Free Report) and BHP Group (BHP - Free Report) .

Fortescue has a projected earnings growth rate of 53.6% for the current fiscal. The company’s shares have surged around 173% in a year. It currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Impala Platinum has an expected earnings growth rate of 131.7% for the current fiscal. The company’s shares have rallied around 30% in the past year. It currently carries a Zacks Rank #1.

BHP Group has a projected earnings growth rate of 43.3% for the current fiscal year. The company’s shares have gained around 31% in a year. It currently carries a Zacks Rank #1.

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