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Chemours (CC) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Chemours (CC - Free Report) closed at $28.95, marking a -1.63% move from the previous day. This change lagged the S&P 500's 0.18% gain on the day.

Coming into today, shares of the chemical company had lost 1.51% in the past month. In that same time, the Basic Materials sector gained 6.25%, while the S&P 500 gained 2.96%.

Wall Street will be looking for positivity from CC as it approaches its next earnings report date. This is expected to be November 4, 2021. The company is expected to report EPS of $0.97, up 106.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.64 billion, up 32.87% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.70 per share and revenue of $6.12 billion, which would represent changes of +86.87% and +24.07%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for CC. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.36% higher within the past month. CC is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that CC has a Forward P/E ratio of 7.95 right now. This represents a discount compared to its industry's average Forward P/E of 12.45.

It is also worth noting that CC currently has a PEG ratio of 0.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Chemical - Diversified industry currently had an average PEG ratio of 1.16 as of yesterday's close.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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