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Element Solutions (ESI) Soars 9.2%: Is Further Upside Left in the Stock?
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Element Solutions (ESI - Free Report) shares soared 9.2% in the last trading session to close at $21.63. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.5% loss over the past four weeks.
Optimism over strengthening demand in end markets is driving the stock higher. The company is benefiting from strong demand in its electronics business. Its industrial and specialty unit is also gaining from strong European construction and general industrial end markets. The recovery in automotive and industrial end markets and continued strength in the electronic supply chain position the company well for growth this year. The acquisitions of Coventya and H.K. Wentworth also provide opportunities for higher growth in its core markets.
This specialty chemical and printing products is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of -2.7%. Revenues are expected to be $645 million, up 17.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Element Solutions, the consensus EPS estimate for the quarter has been revised 3.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ESI going forward to see if this recent jump can turn into more strength down the road.
Element Solutions is a member of the Zacks Chemical - Specialty industry. One other stock in the same industry, Ingevity (NGVT - Free Report) , finished the last trading session 8.1% higher at $63.31. NGVT has returned -9.8% over the past month.
For Ingevity, the consensus EPS estimate for the upcoming report has changed +2.1% over the past month to $1.11. This represents a change of -12.6% from what the company reported a year ago. Ingevity currently has a Zacks Rank of #2 (Buy).
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Element Solutions (ESI) Soars 9.2%: Is Further Upside Left in the Stock?
Element Solutions (ESI - Free Report) shares soared 9.2% in the last trading session to close at $21.63. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.5% loss over the past four weeks.
Optimism over strengthening demand in end markets is driving the stock higher. The company is benefiting from strong demand in its electronics business. Its industrial and specialty unit is also gaining from strong European construction and general industrial end markets. The recovery in automotive and industrial end markets and continued strength in the electronic supply chain position the company well for growth this year. The acquisitions of Coventya and H.K. Wentworth also provide opportunities for higher growth in its core markets.
This specialty chemical and printing products is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of -2.7%. Revenues are expected to be $645 million, up 17.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Element Solutions, the consensus EPS estimate for the quarter has been revised 3.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ESI going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Element Solutions is a member of the Zacks Chemical - Specialty industry. One other stock in the same industry, Ingevity (NGVT - Free Report) , finished the last trading session 8.1% higher at $63.31. NGVT has returned -9.8% over the past month.
For Ingevity, the consensus EPS estimate for the upcoming report has changed +2.1% over the past month to $1.11. This represents a change of -12.6% from what the company reported a year ago. Ingevity currently has a Zacks Rank of #2 (Buy).