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Here's Why You Should Invest In Chemours (CC) Stock Now
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The Chemours Company (CC - Free Report) is benefiting from higher demand for its Opteon refrigerants, strong execution, higher pricing 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 B. 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.
Price Performance
Shares of Chemours have rallied 44.5% over the past six months compared with the 4.6% rise of its industry. It has also outperformed the S&P 500’s roughly 8.9% decline over the same period.
Image Source: Zacks Investment Research
Estimates Moving Up
Over the past two months, the Zacks Consensus Estimate for Chemours for the current year has increased around 15.7%. The consensus estimate for second-quarter 2022 has also been revised 16.4% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Healthy Growth Prospects
The Zacks Consensus Estimate for 2022 earnings of $5.22 for Chemours suggests year-over-year growth of 30.4%. Moreover, earnings are expected to register a 18.5% growth in the second quarter.
Superior Return on Equity (ROE)
ROE is a measure of a company’s efficiency in utilizing shareholder’s funds. ROE for the trailing 12-months for Chemours is 76.5%, well above the industry’s level of 26.2%.
Growth Drivers in Place
Chemours is gaining from a recovery in demand from the coronavirus-led slowdown, strong execution and its cost-reduction and price hike 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.
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 amid headwinds from semiconductor supply-chain disruptions that are affecting automotive demand. Chemours remains committed toward driving Opteon adoption. Volumes in the Titanium Technologies division are also being driven by steady demand across all end-markets and geographies.
Chemours is also benefiting from its efforts to reduce costs. The company’s cost-reduction program along with its productivity and operational improvement actions across its businesses are expected to support margins in 2022. 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 completed $146 million of share repurchases in the first quarter and its board also approved a new share repurchase authorization of $750 million. Chemours expects to generate free cash flow of more than $550 million in 2022. It expects to return the majority of its free cash flow to its shareholders through dividend and share repurchases this year.
Some other top-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , Albemarle Corporation (ALB - Free Report) and Cabot Corporation (CBT - Free Report) .
Nutrien, sporting a Zacks Rank #1, has an expected earnings growth rate of 159.7% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 25.8% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 5.8%, on average. NTR has rallied 54% in a year.
Albemarle has a projected earnings growth rate of 234.3% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 125.8% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 22.5%. ALB has rallied roughly 53% in a year. The company sports a Zacks Rank #1.
Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 21.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 5.2% upward in the past 60 days.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 18% over a year.
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Here's Why You Should Invest In Chemours (CC) Stock Now
The Chemours Company (CC - Free Report) is benefiting from higher demand for its Opteon refrigerants, strong execution, higher pricing 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 B. 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.
Price Performance
Shares of Chemours have rallied 44.5% over the past six months compared with the 4.6% rise of its industry. It has also outperformed the S&P 500’s roughly 8.9% decline over the same period.
Image Source: Zacks Investment Research
Estimates Moving Up
Over the past two months, the Zacks Consensus Estimate for Chemours for the current year has increased around 15.7%. The consensus estimate for second-quarter 2022 has also been revised 16.4% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Healthy Growth Prospects
The Zacks Consensus Estimate for 2022 earnings of $5.22 for Chemours suggests year-over-year growth of 30.4%. Moreover, earnings are expected to register a 18.5% growth in the second quarter.
Superior Return on Equity (ROE)
ROE is a measure of a company’s efficiency in utilizing shareholder’s funds. ROE for the trailing 12-months for Chemours is 76.5%, well above the industry’s level of 26.2%.
Growth Drivers in Place
Chemours is gaining from a recovery in demand from the coronavirus-led slowdown, strong execution and its cost-reduction and price hike 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.
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 amid headwinds from semiconductor supply-chain disruptions that are affecting automotive demand. Chemours remains committed toward driving Opteon adoption. Volumes in the Titanium Technologies division are also being driven by steady demand across all end-markets and geographies.
Chemours is also benefiting from its efforts to reduce costs. The company’s cost-reduction program along with its productivity and operational improvement actions across its businesses are expected to support margins in 2022. 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 completed $146 million of share repurchases in the first quarter and its board also approved a new share repurchase authorization of $750 million. Chemours expects to generate free cash flow of more than $550 million in 2022. It expects to return the majority of its free cash flow to its shareholders through dividend and share repurchases this year.
The Chemours Company Price and Consensus
The Chemours Company price-consensus-chart | The Chemours Company Quote
Stocks to Consider
Some other top-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , Albemarle Corporation (ALB - Free Report) and Cabot Corporation (CBT - Free Report) .
Nutrien, sporting a Zacks Rank #1, has an expected earnings growth rate of 159.7% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 25.8% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 5.8%, on average. NTR has rallied 54% in a year.
Albemarle has a projected earnings growth rate of 234.3% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 125.8% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 22.5%. ALB has rallied roughly 53% in a year. The company sports a Zacks Rank #1.
Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 21.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 5.2% upward in the past 60 days.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 18% over a year.