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Shares of The Chemours Company (CC - Free Report) scaled a fresh 52-week high of $37.69 on Jun 2, before closing the session at $37.14.
The company, carrying a Zacks Rank #2 (Buy), has a market cap of around $6.2 billion.
The stock has surged 151% in the past year compared with 54.2% rise of the industry.
Image Source: Zacks Investment Research
What’s Driving Chemours?
Chemours is benefiting from higher demand for Opteon in mobile applications, strong execution and cost-cutting measures.
Chemours’ adjusted earnings of 71 cents per share in the first quarter topped the Zacks Consensus Estimate of 68 cents. In its last earnings call, the company stated that it expects adjusted EBITDA in the band of $1-$1.15 billion in 2021. It also sees adjusted earnings per share between $2.84 and $3.56 for the year, up from the prior view of $2.40 and $3.12. The company also expects free cash flow of more than $450 million for the year.
Earnings estimates for Chemours have also been going up in the past two months. The Zacks Consensus Estimate for 2021 has increased around 11%, while the same for second-quarter 2021 has gone up 32.8%. The favorable estimate revisions instill investors’ optimism in the stock.
Chemours is benefiting from increasing adoption of the Opteon platform and growing applications of fluoropolymers, especially in automotive, electronics and energy end-markets. The company remains is committed toward driving Opteon adoption. The company is seeing higher demand for Opteon in mobile applications.
The company also stands to gain from its efforts to reduce costs. It is undertaking actions to cut costs by reducing overhead, discretionary spend and capital expenditures. The company, in 2020, benefited from its $160-million cost-management program aimed toward enhancing financial flexibility.
The company’s cost-reduction program along with its productivity and operational improvement actions across its businesses are also expected to support margins in 2021.
Some other top-ranked stocks in the basic materials space are Dow Inc. (DOW - Free Report) , Nucor Corporation (NUE - Free Report) and Cabot Corporation (CBT - Free Report) .
Dow has a projected earnings growth rate of around 268.7% for the current year. The company’s shares have surged 65.7% 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.
Nucor has an expected earnings growth rate of around 238% for the current year. The company’s shares have gained 138.2% in the past year. It currently sports a Zacks Rank #1.
Cabot has an expected earnings growth rate of roughly 126% for the current fiscal. The company’s shares have surged 62.8% in the past year. It currently flaunts a Zacks Rank #1.
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Image: Bigstock
Chemours (CC) Stock Hits 52-Week High: What's Driving It?
Shares of The Chemours Company (CC - Free Report) scaled a fresh 52-week high of $37.69 on Jun 2, before closing the session at $37.14.
The company, carrying a Zacks Rank #2 (Buy), has a market cap of around $6.2 billion.
The stock has surged 151% in the past year compared with 54.2% rise of the industry.
What’s Driving Chemours?
Chemours is benefiting from higher demand for Opteon in mobile applications, strong execution and cost-cutting measures.
Chemours’ adjusted earnings of 71 cents per share in the first quarter topped the Zacks Consensus Estimate of 68 cents. In its last earnings call, the company stated that it expects adjusted EBITDA in the band of $1-$1.15 billion in 2021. It also sees adjusted earnings per share between $2.84 and $3.56 for the year, up from the prior view of $2.40 and $3.12. The company also expects free cash flow of more than $450 million for the year.
Earnings estimates for Chemours have also been going up in the past two months. The Zacks Consensus Estimate for 2021 has increased around 11%, while the same for second-quarter 2021 has gone up 32.8%. The favorable estimate revisions instill investors’ optimism in the stock.
Chemours is benefiting from increasing adoption of the Opteon platform and growing applications of fluoropolymers, especially in automotive, electronics and energy end-markets. The company remains is committed toward driving Opteon adoption. The company is seeing higher demand for Opteon in mobile applications.
The company also stands to gain from its efforts to reduce costs. It is undertaking actions to cut costs by reducing overhead, discretionary spend and capital expenditures. The company, in 2020, benefited from its $160-million cost-management program aimed toward enhancing financial flexibility.
The company’s cost-reduction program along with its productivity and operational improvement actions across its businesses are also expected to support margins in 2021.
The Chemours Company Price and Consensus
The Chemours Company price-consensus-chart | The Chemours Company Quote
Other Stocks to Consider
Some other top-ranked stocks in the basic materials space are Dow Inc. (DOW - Free Report) , Nucor Corporation (NUE - Free Report) and Cabot Corporation (CBT - Free Report) .
Dow has a projected earnings growth rate of around 268.7% for the current year. The company’s shares have surged 65.7% 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.
Nucor has an expected earnings growth rate of around 238% for the current year. The company’s shares have gained 138.2% in the past year. It currently sports a Zacks Rank #1.
Cabot has an expected earnings growth rate of roughly 126% for the current fiscal. The company’s shares have surged 62.8% in the past year. It currently flaunts a Zacks Rank #1.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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