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Shares of The Chemours Company (CC - Free Report) scaled a fresh 52-week high of $44.95 on Jun 6, before closing the session at $44.43.
The company, sporting a Zacks Rank #1 (Strong Buy), has a market cap of around $6.8 billion.
The stock has gained 22.2% in the past year against a 6.4% decline of the industry.
Image Source: Zacks Investment Research
What’s Driving Chemours?
Chemours is benefiting from a rebound in demand from the coronavirus-induced downturn, strong execution, cost reduction and pricing actions.
Chemours’ adjusted earnings of $1.46 per share in the first quarter topped the Zacks Consensus Estimate of 92 cents. In its first-quarter call, the company stated that it now expects adjusted EBITDA in the band of $1.475-$1.575 billion in 2022, up from its earlier view of $1.3-$1.425 billion. The company also expects a free cash flow of more than $550 million for the year.
Earnings estimates for Chemours have also been going up in the past two months. The Zacks Consensus Estimate for 2022 has increased around 15.2%, while the same for second-quarter 2022 has gone up 16.4%. The favorable estimate revisions instill investors’ optimism in the stock.
The company sees 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 for refrigerants across most regions. It is also witnessing strong adoption of the Opteon platform amid headwinds from semiconductor supply-chain disruptions affecting automotive demand. Chemours remains committed to 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 gaining from its efforts to reduce costs. Its cost-reduction program and its productivity and operational improvement actions across its businesses are expected to support its margins in 2022. It also takes appropriate pricing measures to counter higher costs due to supply chain issues and raw material inflation.
The company also remains focused on boosting its cash flows and returning value to shareholders. Chemours expects to return most of its free cash flow to its shareholders through dividends and share repurchases in 2022.
Some other top-ranked stocks in the basic materials space are Allegheny Technologies Inc. (ATI - Free Report) , Nutrien Ltd. (NTR - Free Report) and Cabot Corporation (CBT - Free Report) .
Allegheny has a projected earnings growth rate of 869.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 27.3% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI has gained around 15.6% in a year and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutrien has a projected earnings growth rate of 163.2% for the current year. The Zacks Consensus Estimate for NTR’s current-year earnings has been revised 27.5% upward in the past 60 days.
Nutrien’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 5.8%. NTR has gained 42.9% 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 year. The Zacks Consensus Estimate for CBT's earnings for the current year 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 22.5% over a year.
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Chemours (CC) Stock Hits 52-Week High: What's Driving It?
Shares of The Chemours Company (CC - Free Report) scaled a fresh 52-week high of $44.95 on Jun 6, before closing the session at $44.43.
The company, sporting a Zacks Rank #1 (Strong Buy), has a market cap of around $6.8 billion.
The stock has gained 22.2% in the past year against a 6.4% decline of the industry.
Image Source: Zacks Investment Research
What’s Driving Chemours?
Chemours is benefiting from a rebound in demand from the coronavirus-induced downturn, strong execution, cost reduction and pricing actions.
Chemours’ adjusted earnings of $1.46 per share in the first quarter topped the Zacks Consensus Estimate of 92 cents. In its first-quarter call, the company stated that it now expects adjusted EBITDA in the band of $1.475-$1.575 billion in 2022, up from its earlier view of $1.3-$1.425 billion. The company also expects a free cash flow of more than $550 million for the year.
Earnings estimates for Chemours have also been going up in the past two months. The Zacks Consensus Estimate for 2022 has increased around 15.2%, while the same for second-quarter 2022 has gone up 16.4%. The favorable estimate revisions instill investors’ optimism in the stock.
The company sees 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 for refrigerants across most regions. It is also witnessing strong adoption of the Opteon platform amid headwinds from semiconductor supply-chain disruptions affecting automotive demand. Chemours remains committed to 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 gaining from its efforts to reduce costs. Its cost-reduction program and its productivity and operational improvement actions across its businesses are expected to support its margins in 2022. It also takes appropriate pricing measures to counter higher costs due to supply chain issues and raw material inflation.
The company also remains focused on boosting its cash flows and returning value to shareholders. Chemours expects to return most of its free cash flow to its shareholders through dividends and share repurchases in 2022.
The Chemours Company Price and Consensus
The Chemours Company price-consensus-chart | The Chemours Company Quote
Other Stocks to Consider
Some other top-ranked stocks in the basic materials space are Allegheny Technologies Inc. (ATI - Free Report) , Nutrien Ltd. (NTR - Free Report) and Cabot Corporation (CBT - Free Report) .
Allegheny has a projected earnings growth rate of 869.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 27.3% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI has gained around 15.6% in a year and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutrien has a projected earnings growth rate of 163.2% for the current year. The Zacks Consensus Estimate for NTR’s current-year earnings has been revised 27.5% upward in the past 60 days.
Nutrien’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 5.8%. NTR has gained 42.9% 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 year. The Zacks Consensus Estimate for CBT's earnings for the current year 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 22.5% over a year.