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Here's Why Huntsman (HUN) Stock is a Solid Choice Right Now
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Huntsman Corporation (HUN - Free Report) is gaining from actions to grow its downstream businesses and synergies of acquisitions. We are positive on the company’s prospects and believe that the time is right for you to add the stock to the portfolio as it looks promising and is poised to carry the momentum ahead.
Huntsman has a Zacks Rank #1 (Strong Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities for investors.
Let's see what makes this chemical maker an intriguing investment option at the moment.
Price Performance
Huntsman’s shares have shot up 93.8% over the past year, outperforming its industry’s rise of 78.5% over the same time frame. It has also topped the S&P 500’s roughly 49.5% rise over the same period.
Estimates Northbound
Over the past two months, the Zacks Consensus Estimate for Huntsman for 2021 has increased around 13.9%. The consensus estimate for 2022 has also been revised 3.6% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Positive Earnings Surprise History
Huntsman has outpaced the Zacks Consensus Estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of 31.6%, on average.
Growth Drivers in Place
Huntsman benefits from its investment in downstream businesses and differentiated product innovation. The company remains focused on growing its downstream specialty and formulation businesses and is shifting its MDI (methylene diphenyl diisocyanate) business from components to differentiated systems that typically have higher margins and lower volatility.
The Polyurethanes segment is well positioned for strong upside in the long term on the back of the company’s focus on ramping up its high-value differentiated downstream portfolio. Substitution of MDI for less effective materials will remain a key driving factor for the MDI business.
Huntsman should also gain from significant synergies of acquisitions. The company expects to deliver more than $120 million of annualized savings and acquisition integration synergies by mid-2023. It achieved $27 million of targeted annualized savings in 2020. Huntsman expects the integration of the Icynene-Lapolla buyout to complete by second-half 2021, leading to more than $20 million of annualized synergies. Moreover, the CVC Thermoset acquisition is projected to deliver run-rate synergies of around $15 million by the end of this year. The recently acquired Gabriel Performance Products is also expected to deliver around $8 million of synergies by early 2023.
Other top-ranked stocks worth considering in the basic materials space include Nucor Corporation (NUE - Free Report) , Fortescue Metals Group Limited (FSUGY - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Nucor has a projected earnings growth rate of 135.3% for the current year. The company’s shares have rallied around 120% in a year. It currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortescue has a projected earnings growth rate of 106.5% for the current fiscal. The company’s shares have shot up around 125% in a year. It currently sports a Zacks Rank #1.
Impala Platinum has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have surged around 203% in the past year. It currently carries a Zacks Rank #1.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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Here's Why Huntsman (HUN) Stock is a Solid Choice Right Now
Huntsman Corporation (HUN - Free Report) is gaining from actions to grow its downstream businesses and synergies of acquisitions. We are positive on the company’s prospects and believe that the time is right for you to add the stock to the portfolio as it looks promising and is poised to carry the momentum ahead.
Huntsman has a Zacks Rank #1 (Strong Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities for investors.
Let's see what makes this chemical maker an intriguing investment option at the moment.
Price Performance
Huntsman’s shares have shot up 93.8% over the past year, outperforming its industry’s rise of 78.5% over the same time frame. It has also topped the S&P 500’s roughly 49.5% rise over the same period.
Estimates Northbound
Over the past two months, the Zacks Consensus Estimate for Huntsman for 2021 has increased around 13.9%. The consensus estimate for 2022 has also been revised 3.6% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Positive Earnings Surprise History
Huntsman has outpaced the Zacks Consensus Estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of 31.6%, on average.
Growth Drivers in Place
Huntsman benefits from its investment in downstream businesses and differentiated product innovation. The company remains focused on growing its downstream specialty and formulation businesses and is shifting its MDI (methylene diphenyl diisocyanate) business from components to differentiated systems that typically have higher margins and lower volatility.
The Polyurethanes segment is well positioned for strong upside in the long term on the back of the company’s focus on ramping up its high-value differentiated downstream portfolio. Substitution of MDI for less effective materials will remain a key driving factor for the MDI business.
Huntsman should also gain from significant synergies of acquisitions. The company expects to deliver more than $120 million of annualized savings and acquisition integration synergies by mid-2023. It achieved $27 million of targeted annualized savings in 2020. Huntsman expects the integration of the Icynene-Lapolla buyout to complete by second-half 2021, leading to more than $20 million of annualized synergies. Moreover, the CVC Thermoset acquisition is projected to deliver run-rate synergies of around $15 million by the end of this year. The recently acquired Gabriel Performance Products is also expected to deliver around $8 million of synergies by early 2023.
Huntsman Corporation Price and Consensus
Huntsman Corporation price-consensus-chart | Huntsman Corporation Quote
Stocks to Consider
Other top-ranked stocks worth considering in the basic materials space include Nucor Corporation (NUE - Free Report) , Fortescue Metals Group Limited (FSUGY - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Nucor has a projected earnings growth rate of 135.3% for the current year. The company’s shares have rallied around 120% in a year. It currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortescue has a projected earnings growth rate of 106.5% for the current fiscal. The company’s shares have shot up around 125% in a year. It currently sports a Zacks Rank #1.
Impala Platinum has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have surged around 203% in the past year. It currently carries a Zacks Rank #1.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>