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Cabot (CBT) Launches Engineered Elastomer Composites Product

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Cabot Corporation (CBT - Free Report) recently announced the launch of a new Engineered Elastomer Composites (E2C) product for use in industrial rubber products. The latest product E2C DZ8650 forms part of the Durability series of solutions, which intends to lower in-field failures and maximize operational uptime.

The purpose of DZ8650 is not only to deliver breakthrough improvements in erosion and wet abrasion resistance, but also provide mechanical strength in mining rubber applications including slurry pumps, hydro cyclones and rubber pipes.

The product DZ8650 can be combined in the current production process of industrial rubber manufacturer without any additional capital spending. This will facilitate producers to reform their business model by improving performance, shortening development cycles and lower operational barriers to new product commercialization.

E2C family of solutions, which was launched in early 2020, has an addition in the form of DZ8650. This reflects on Cabot’s commitment to help tire and rubber products manufacturers reach performance goals as well as improve sustainability.

Shares of Cabot have gained 86.8% in the past year compared with 93.2% rise of the industry.

Cabot, in its last earnings call, stated that it expects near-term conditions to remain favorable while long term visibility is limited. It forecasts strength in demand in the second quarter. It anticipated an increase in raw material and fixed costs sequentially and less customer inventory replenishment compared to the first quarter.

On the basis of these factors, adjusted earnings per share are projected in the range of 90 cents to $1.00. The company expects that the pandemic resurgence or related factors will not have a significant disruption impact on the ongoing business environment.

Cabot Corporation Price and Consensus

 

Cabot Corporation Price and Consensus

Cabot Corporation price-consensus-chart | Cabot Corporation Quote

 

Zacks Rank & Other Key Picks

Cabot currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY - Free Report) , BHP Group (BHP - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .

Fortescue has a projected earnings growth rate of 107.8% for the current fiscal. The company’s shares have surged around 201.1% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank  stocks here.

BHP has an expected earnings growth rate of 76.8% for the current fiscal. The company’s shares have gained 136% in the past year. It currently sports a Zacks Rank #1.

Impala has an expected earnings growth rate of 186.9% for the current fiscal. The company’s shares have rallied around 252.5% in the past year. It currently sports a Zacks Rank #1.

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