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Celanese (CE) Up 25% in 6 Months: What's Driving the Stock?
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Shares of Celanese Corporation (CE - Free Report) have gained 24.7% in the past six months. The rally has resulted in the stock outperforming its industry’s rise of 6.4% over the same time frame. The company has also topped the S&P 500’s 15.5% rise over the same period.
Let’s take a look into the factors that are driving this Zacks Rank #3 (Hold) stock’s price performance.
What’s Favoring CE?
Better-than-expected first-quarter results and an upbeat outlook have contributed to the gain in the company’s shares. Celanese’s adjusted earnings for the first quarter of $3.46 per share surpassed the Zacks Consensus Estimate of $3.01.
Revenues jumped 23% year over year to $1,798 million and beat the Zacks Consensus Estimate of $1,745.8 million. The company benefited from continued improvement in demand in the quarter.
Celanese also raised its adjusted earnings outlook for 2021 to $12.50-$13.50 per share from its prior view of $11.00-$11.50 per share.
Celanese is benefiting from its productivity actions, investments in high-return organic projects and strategic acquisitions. The company is also seeing a recovery in demand across most of its end markets. It is witnessing higher demand in automotive, industrial and electronics applications. Demand for its Engineered Materials and Acetyl Chain products remains strong in most end markets.
The company also remains focused on executing its productivity programs that include the implementation of a number of cost reduction capital projects. It achieved gross savings of $214 million from its productivity actions in 2020. Productivity actions are also expected to support to its margins in 2021.
Celanese also continues to actively pursue acquisitions, which are providing it opportunities for additional growth, investment and synergies. The acquisitions of SO.F.TER., Nilit and Omni Plastics are expected to contribute to earnings expansion in the company's Engineered Materials segment. The Elotex acquisition also strengthened the company’s position in the vinyl acetate ethylene emulsions space. The buyout is expected to contribute to volumes in the Acetyl Chain segment.
Moreover, earnings estimate revisions have the greatest impact on stock prices. Over the past two months, the Zacks Consensus Estimate for Celanese for the current year has increased around 27.8%. The consensus estimate for 2022 has also been revised 14.5% upward over the same time frame.
Better-ranked stocks worth considering in the basic materials space include Nucor Corporation (NUE - Free Report) , Cabot Corporation (CBT - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Nucor has a projected earnings growth rate of 229.3% for the current year. The company’s shares have rallied around 149% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot has an expected earnings growth rate of around 126% for the current fiscal. The company’s shares have surged 74% in the past year. It currently sports a Zacks Rank #1.
Impala Platinum has an expected earnings growth rate of 225.2% for the current fiscal. The company’s shares have surged around 161% in the past year. It currently carries a Zacks Rank #2.
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Celanese (CE) Up 25% in 6 Months: What's Driving the Stock?
Shares of Celanese Corporation (CE - Free Report) have gained 24.7% in the past six months. The rally has resulted in the stock outperforming its industry’s rise of 6.4% over the same time frame. The company has also topped the S&P 500’s 15.5% rise over the same period.
Let’s take a look into the factors that are driving this Zacks Rank #3 (Hold) stock’s price performance.
What’s Favoring CE?
Better-than-expected first-quarter results and an upbeat outlook have contributed to the gain in the company’s shares. Celanese’s adjusted earnings for the first quarter of $3.46 per share surpassed the Zacks Consensus Estimate of $3.01.
Revenues jumped 23% year over year to $1,798 million and beat the Zacks Consensus Estimate of $1,745.8 million. The company benefited from continued improvement in demand in the quarter.
Celanese also raised its adjusted earnings outlook for 2021 to $12.50-$13.50 per share from its prior view of $11.00-$11.50 per share.
Celanese is benefiting from its productivity actions, investments in high-return organic projects and strategic acquisitions. The company is also seeing a recovery in demand across most of its end markets. It is witnessing higher demand in automotive, industrial and electronics applications. Demand for its Engineered Materials and Acetyl Chain products remains strong in most end markets.
The company also remains focused on executing its productivity programs that include the implementation of a number of cost reduction capital projects. It achieved gross savings of $214 million from its productivity actions in 2020. Productivity actions are also expected to support to its margins in 2021.
Celanese also continues to actively pursue acquisitions, which are providing it opportunities for additional growth, investment and synergies. The acquisitions of SO.F.TER., Nilit and Omni Plastics are expected to contribute to earnings expansion in the company's Engineered Materials segment. The Elotex acquisition also strengthened the company’s position in the vinyl acetate ethylene emulsions space. The buyout is expected to contribute to volumes in the Acetyl Chain segment.
Moreover, earnings estimate revisions have the greatest impact on stock prices. Over the past two months, the Zacks Consensus Estimate for Celanese for the current year has increased around 27.8%. The consensus estimate for 2022 has also been revised 14.5% upward over the same time frame.
Celanese Corporation Price and Consensus
Celanese Corporation price-consensus-chart | Celanese Corporation Quote
Stocks to Consider
Better-ranked stocks worth considering in the basic materials space include Nucor Corporation (NUE - Free Report) , Cabot Corporation (CBT - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Nucor has a projected earnings growth rate of 229.3% for the current year. The company’s shares have rallied around 149% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot has an expected earnings growth rate of around 126% for the current fiscal. The company’s shares have surged 74% in the past year. It currently sports a Zacks Rank #1.
Impala Platinum has an expected earnings growth rate of 225.2% for the current fiscal. The company’s shares have surged around 161% in the past year. It currently carries a Zacks Rank #2.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency have sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
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