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.
Ingevity (NGVT) Gains on Strong Demand, Capacity Expansion
Read MoreHide Full Article
Ingevity Corporation (NGVT - Free Report) is poised to benefit from higher demand and prices in its industrial specialties and engineered polymers businesses and its actions to drive capacity amid headwinds from higher input and logistics costs.
Ingevity, a Zacks Rank #3 (Hold) stock, is seeing continued recovery in demand for its industrial specialties products from the pandemic-induced slowdown, which is leading to higher volumes and prices. The company benefited from strong volume gains in the Performance Chemicals segment on solid demand as well as higher selling prices in engineered polymers and industrial specialties in the first quarter of 2022.
Revenues in the Performance Chemicals segment were driven, in the first quarter, by strong volume growth and price increases. Ingevity is witnessing strong demand for engineered polymers and industrial specialties applications. Demand for automotive carbon and honeycomb products also remains solid, driving results in the Performance Materials unit. The company is benefiting from increased demand for process purification products. Strong demand is expected to continue to support its top line and margins moving ahead.
Ingevity is also taking a number of actions to drive long-term growth. It remains committed to invest organically. The company is working to enhance the production capacity of alternative fatty acid at the Crossett facility, which will support more substantial future sales growth. It also remains on track to add polyol capacity at its DeRidder plant. The company is also working on a number of debottlenecking projects at its performance materials facilities.
The company remains focused on optimizing its operations and inventory to provide outstanding service to customers. It is also taking price hike actions to mitigate cost inflation. Ingevity is also committed to capturing the maximum value for its products.
However, the company is facing costs-related headwinds as witnessed in the first quarter. Higher freight and raw material costs and energy inflation are affecting its results. Raw material inflation is expected to continue in the remainder of 2022 due to persistent supply chain issues. As such, higher input costs are likely to weigh on its bottom line. Higher logistics costs due to disruptions in supply chains are another concern.
Better-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 (Strong Buy), has an expected earnings growth rate of 163.4% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 27.5% 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 45% in a year.
Albemarle has a projected earnings growth rate of 203.7% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 105% 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 47% in a year. The company flaunts a Zacks Rank #1.
Cabot, currently carrying a Zacks Rank #2 (Buy), 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 20% over a year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Ingevity (NGVT) Gains on Strong Demand, Capacity Expansion
Ingevity Corporation (NGVT - Free Report) is poised to benefit from higher demand and prices in its industrial specialties and engineered polymers businesses and its actions to drive capacity amid headwinds from higher input and logistics costs.
Ingevity, a Zacks Rank #3 (Hold) stock, is seeing continued recovery in demand for its industrial specialties products from the pandemic-induced slowdown, which is leading to higher volumes and prices. The company benefited from strong volume gains in the Performance Chemicals segment on solid demand as well as higher selling prices in engineered polymers and industrial specialties in the first quarter of 2022.
Revenues in the Performance Chemicals segment were driven, in the first quarter, by strong volume growth and price increases. Ingevity is witnessing strong demand for engineered polymers and industrial specialties applications. Demand for automotive carbon and honeycomb products also remains solid, driving results in the Performance Materials unit. The company is benefiting from increased demand for process purification products. Strong demand is expected to continue to support its top line and margins moving ahead.
Ingevity is also taking a number of actions to drive long-term growth. It remains committed to invest organically. The company is working to enhance the production capacity of alternative fatty acid at the Crossett facility, which will support more substantial future sales growth. It also remains on track to add polyol capacity at its DeRidder plant. The company is also working on a number of debottlenecking projects at its performance materials facilities.
The company remains focused on optimizing its operations and inventory to provide outstanding service to customers. It is also taking price hike actions to mitigate cost inflation. Ingevity is also committed to capturing the maximum value for its products.
However, the company is facing costs-related headwinds as witnessed in the first quarter. Higher freight and raw material costs and energy inflation are affecting its results. Raw material inflation is expected to continue in the remainder of 2022 due to persistent supply chain issues. As such, higher input costs are likely to weigh on its bottom line. Higher logistics costs due to disruptions in supply chains are another concern.
Ingevity Corporation Price and Consensus
Ingevity Corporation price-consensus-chart | Ingevity Corporation Quote
Stocks to Consider
Better-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 (Strong Buy), has an expected earnings growth rate of 163.4% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 27.5% 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 45% in a year.
Albemarle has a projected earnings growth rate of 203.7% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 105% 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 47% in a year. The company flaunts a Zacks Rank #1.
Cabot, currently carrying a Zacks Rank #2 (Buy), 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 20% over a year.