We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cabot Corporation’s (CBT - Free Report) shares scaled a fresh 52-week high of $65.14 on Jun 4, before closing the session at $64.85.
The company, currently carrying a Zacks Rank #2 (Buy), has a market cap of around $3.7 billion.
The stock has increased 50.7% in the past year compared with the industry and S&P 500’s 46.5% and 31.3% rise, respectively.
Image Source: Zacks Investment Research
What’s Driving Cabot?
Better-than-expected fiscal second-quarter earnings performance and upbeat prospects contributed to the uptick in the company's shares. Cabot’s adjusted earnings per share were $1.38 for the fiscal second quarter, reflecting a sharp rise from 77 cents in the year-ago period and topping the Zacks Consensus Estimate of 97 cents. Net sales increased around 19% year over year to $842 million for the quarter. The metric beat the Zacks Consensus Estimate of $745.6 million.
The company, in its second-quarter call, stated that it expects continued demand across all segments in the second half of the fiscal year. The company envisions volumes to remain strong through the second half of the fiscal year. It also expects adjusted earnings per share for fiscal 2021 between $4.70 and $4.95.
Earnings estimates for Cabot have also been moving up over the past two months. The Zacks Consensus Estimate for earnings for fiscal 2021 has increased around 17.2% while the same for third-quarter fiscal 2021 has moved up 14.9%. The favorable estimate revisions instill investor confidence in the stock.
Cabot is gaining from a recovery in demand from automotive and tire customers owing to the pandemic-led stupor, disciplined execution of operations and targeted growth initiatives. This contributed to improved second-quarter results in the Performance Chemicals segment. The company saw strong volumes in the tire and automotive markets in the fiscal second quarter on the back of continued global recovery. It is also benefiting from strength in infrastructure, packaging and consumer-driven applications. High earnings before interest and tax were witnessed in the Reinforcement Materials segment in the fiscal second quarter led by stronger volumes as well as pricing in Asia.
The company is also poised to benefit from the acquisition of Shenzhen Sanshun Nano New Materials. This acquisition significantly bolstered its market position and formulation capabilities in the high-growth batteries market, especially in China, and is also expected to widen Cabot’s position in the energy storage market. The buyout of Tech Blend also expanded its global footprint, and strengthened the manufacturing capacity of black masterbatch and compounds.
Moreover, Cabot is committed to leverage healthy cash flows to return cash to shareholders. It generated operating cash flow of $65 million in the last reported quarter and paid dividend worth $20 million.
Olin has a projected earnings growth rate of 473.3% for the current year. The company’s shares have surged 297.4% over a year.
Tronox has a projected earnings growth rate of 242.9% for the current year. The company’s shares have appreciated 181.8% over a year.
Univar has a projected earnings growth rate of 35.2% for the current year. The company’s shares have jumped 55.8% over a year.
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.
Image: Bigstock
Cabot (CBT) Stock Hits 52-Week High: What's Driving It?
Cabot Corporation’s (CBT - Free Report) shares scaled a fresh 52-week high of $65.14 on Jun 4, before closing the session at $64.85.
The company, currently carrying a Zacks Rank #2 (Buy), has a market cap of around $3.7 billion.
The stock has increased 50.7% in the past year compared with the industry and S&P 500’s 46.5% and 31.3% rise, respectively.
What’s Driving Cabot?
Better-than-expected fiscal second-quarter earnings performance and upbeat prospects contributed to the uptick in the company's shares. Cabot’s adjusted earnings per share were $1.38 for the fiscal second quarter, reflecting a sharp rise from 77 cents in the year-ago period and topping the Zacks Consensus Estimate of 97 cents. Net sales increased around 19% year over year to $842 million for the quarter. The metric beat the Zacks Consensus Estimate of $745.6 million.
The company, in its second-quarter call, stated that it expects continued demand across all segments in the second half of the fiscal year. The company envisions volumes to remain strong through the second half of the fiscal year. It also expects adjusted earnings per share for fiscal 2021 between $4.70 and $4.95.
Earnings estimates for Cabot have also been moving up over the past two months. The Zacks Consensus Estimate for earnings for fiscal 2021 has increased around 17.2% while the same for third-quarter fiscal 2021 has moved up 14.9%. The favorable estimate revisions instill investor confidence in the stock.
Cabot is gaining from a recovery in demand from automotive and tire customers owing to the pandemic-led stupor, disciplined execution of operations and targeted growth initiatives. This contributed to improved second-quarter results in the Performance Chemicals segment. The company saw strong volumes in the tire and automotive markets in the fiscal second quarter on the back of continued global recovery. It is also benefiting from strength in infrastructure, packaging and consumer-driven applications. High earnings before interest and tax were witnessed in the Reinforcement Materials segment in the fiscal second quarter led by stronger volumes as well as pricing in Asia.
The company is also poised to benefit from the acquisition of Shenzhen Sanshun Nano New Materials. This acquisition significantly bolstered its market position and formulation capabilities in the high-growth batteries market, especially in China, and is also expected to widen Cabot’s position in the energy storage market. The buyout of Tech Blend also expanded its global footprint, and strengthened the manufacturing capacity of black masterbatch and compounds.
Moreover, Cabot is committed to leverage healthy cash flows to return cash to shareholders. It generated operating cash flow of $65 million in the last reported quarter and paid dividend worth $20 million.
Cabot Corporation Price and Consensus
Cabot Corporation price-consensus-chart | Cabot Corporation Quote
Other Stocks to Consider
Other top-ranked stocks in the basic materials space include Olin Corporation (OLN - Free Report) , Tronox Holdings PLC (TROX - Free Report) and Univar Solutions Inc. , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olin has a projected earnings growth rate of 473.3% for the current year. The company’s shares have surged 297.4% over a year.
Tronox has a projected earnings growth rate of 242.9% for the current year. The company’s shares have appreciated 181.8% over a year.
Univar has a projected earnings growth rate of 35.2% for the current year. The company’s shares have jumped 55.8% over a year.
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>>