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What Makes Chemours (CC) Stock a Solid Choice Right Now
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The Chemours Company (CC - Free Report) is benefiting from higher demand for Opteon, strong execution and cost-cutting measures. 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.
Chemours currently carries 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 a compelling investment option at the moment.
Estimates Moving Up
Over the past two months, the Zacks Consensus Estimate for Chemours for the current year has increased around 10%. The consensus estimate for fourth-quarter 2021 has also been revised 10% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Positive Earnings Surprise History
Chemours has outpaced the Zacks Consensus Estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of 34.2%, on average.
Solid Growth Prospects
The Zacks Consensus Estimate for earnings for 2021 for Chemours is currently pegged at $4.06, reflecting an expected year-over-year growth of 105.1%. Moreover, earnings are expected to register 44.3% growth in fourth-quarter 2021.
Attractive Valuation
Valuation looks attractive as Chemours’ shares are currently trading at a level that is lower than the industry average, suggesting that the stock still has upside potential.
Going by the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) multiple, which is often used to value chemical stocks, Chemours is currently trading at trailing 12-month EV/EBITDA multiple of 7.25, cheaper compared with the industry average of 9.13.
Upbeat Prospects
Chemours is gaining from a rebound in demand from the pandemic-led lows, strong execution and its cost-reduction and pricing actions. The company is seeing demand revival across its end markets and regions on the global macroeconomic recovery. Strong market demand is contributing to higher volumes and improved pricing as witnessed in third-quarter 2021.
The company’s Thermal & Specialized Solutions segment is benefiting from strong demand in refrigerants across most regions. It is also witnessing strong adoption of the Opteon platform in all markets amid headwinds from semiconductor supply-chain disruptions that are affecting automotive demand. Chemours remains committed toward driving Opteon adoption.
Chemours should also gain from its efforts to reduce costs. It is undertaking actions to cut costs by reducing overhead, discretionary spend and capital expenditures. The company’s cost-reduction program along with its productivity and operational improvement actions across its businesses are expected to support margins in 2021. It is also taking appropriate pricing measures to counter higher costs partly due to supply chain issues and raw material inflation.
The company also remains focused on boosting its cash flows and returning value to shareholders. It generated strong free cash flow of $244 million in the third quarter. Chemours expects to generate free cash flow of more than $500 million in 2021 and return the majority of this to its shareholders through dividend and share repurchases.
Nutrien has an expected earnings growth rate of 212.2% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 12.9% upward over the last 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 73.5%, on average. NTR has rallied around 46% in a year.
AdvanSix has a projected earnings growth rate of 196.9% for the current year. ASIX's consensus estimate for the current year has been revised 14.1% upward over the last 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 164% in a year.
Intrepid Potash has a projected earnings growth rate of 244.7% for the current year. The consensus estimate for IPI’s current year has been revised 3.3% upward over the last 60 days.
Intrepid Potash beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 132.9%, on average. IPI shares have surged around 213% in a year.
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What Makes Chemours (CC) Stock a Solid Choice Right Now
The Chemours Company (CC - Free Report) is benefiting from higher demand for Opteon, strong execution and cost-cutting measures. 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.
Chemours currently carries 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 a compelling investment option at the moment.
Estimates Moving Up
Over the past two months, the Zacks Consensus Estimate for Chemours for the current year has increased around 10%. The consensus estimate for fourth-quarter 2021 has also been revised 10% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Positive Earnings Surprise History
Chemours has outpaced the Zacks Consensus Estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of 34.2%, on average.
Solid Growth Prospects
The Zacks Consensus Estimate for earnings for 2021 for Chemours is currently pegged at $4.06, reflecting an expected year-over-year growth of 105.1%. Moreover, earnings are expected to register 44.3% growth in fourth-quarter 2021.
Attractive Valuation
Valuation looks attractive as Chemours’ shares are currently trading at a level that is lower than the industry average, suggesting that the stock still has upside potential.
Going by the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) multiple, which is often used to value chemical stocks, Chemours is currently trading at trailing 12-month EV/EBITDA multiple of 7.25, cheaper compared with the industry average of 9.13.
Upbeat Prospects
Chemours is gaining from a rebound in demand from the pandemic-led lows, strong execution and its cost-reduction and pricing actions. The company is seeing demand revival across its end markets and regions on the global macroeconomic recovery. Strong market demand is contributing to higher volumes and improved pricing as witnessed in third-quarter 2021.
The company’s Thermal & Specialized Solutions segment is benefiting from strong demand in refrigerants across most regions. It is also witnessing strong adoption of the Opteon platform in all markets amid headwinds from semiconductor supply-chain disruptions that are affecting automotive demand. Chemours remains committed toward driving Opteon adoption.
Chemours should also gain from its efforts to reduce costs. It is undertaking actions to cut costs by reducing overhead, discretionary spend and capital expenditures. The company’s cost-reduction program along with its productivity and operational improvement actions across its businesses are expected to support margins in 2021. It is also taking appropriate pricing measures to counter higher costs partly due to supply chain issues and raw material inflation.
The company also remains focused on boosting its cash flows and returning value to shareholders. It generated strong free cash flow of $244 million in the third quarter. Chemours expects to generate free cash flow of more than $500 million in 2021 and return the majority of this to its shareholders through dividend and share repurchases.
The Chemours Company Price and Consensus
The Chemours Company price-consensus-chart | The Chemours Company Quote
Stocks to Consider
Other top-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Intrepid Potash, Inc. (IPI - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutrien has an expected earnings growth rate of 212.2% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 12.9% upward over the last 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 73.5%, on average. NTR has rallied around 46% in a year.
AdvanSix has a projected earnings growth rate of 196.9% for the current year. ASIX's consensus estimate for the current year has been revised 14.1% upward over the last 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 164% in a year.
Intrepid Potash has a projected earnings growth rate of 244.7% for the current year. The consensus estimate for IPI’s current year has been revised 3.3% upward over the last 60 days.
Intrepid Potash beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 132.9%, on average. IPI shares have surged around 213% in a year.