U.S. Silica Holdings, Inc. (SLCA Quick QuoteSLCA - Free Report) recently stated that its Board completed its earlier-announced review of strategic alternatives for its Industrial & Specialty Products ("ISP") segment.

During the review that started in October 2021, the Board considered various options to maximizing shareholder value, including the potential sale or separation of the ISP segment. As part of the review, among other actions, it contacted and engaged with strategic industry parties and private equity investors.

The Board unanimously determined that retaining ownership of the ISP segment would be the best path forward for U.S. Silica and its shareholders after extensive evaluation, deliberation and consultation with its independent financial and legal advisors. It also considered and is pursuing refinancing the company's debt at more attractive terms than previously available.

U.S. Silica stated that its Board is confident in its long-term strategy, growth prospects and ability to generate cash and will continue to be open to additional opportunities to maximize shareholder value.

Shares of U.S. Silica have increased 15.6% in the past year against a 12% decline of the industry.

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The company, in its last earnings call, stated that for the second quarter and second-half 2022, two business segments are well-positioned for contribution margin expansion and growth in their respective markets. It has a strong portfolio of Industrial and Specialty Products that serve several essential, high-growth and attractive end markets, backed by a strong pipeline of new products under development and pricing increases and surcharges, the company noted.

In the Oil & Gas segment, the company expects a multi-year growth cycle. The strength in commodity prices, especially WTI crude oil and natural gas prices, and increases in consumer spending support an active well completions in 2022.

The company is focused on delivering free cash flow in 2022, deleveraging its balance sheet and intends to be operating cash flow positively in 2022. It forecasts capital expenditures in the range of $40-60 million.

U.S. Silica Holdings, Inc. Price and Consensus

 

U.S. Silica Holdings, Inc. price-consensus-chart | U.S. Silica Holdings, Inc. Quote

Zacks Rank & Other Key Picks

U.S. Silica currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are Allegheny Technologies Inc. (ATI Quick QuoteATI - Free Report) , Cabot Corporation (CBT Quick QuoteCBT - Free Report) and The Chemours Company (CC Quick QuoteCC - Free Report) .

Allegheny has a projected earnings growth rate of 1,030.8% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 40% 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 2.2% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot, currently sporting a Zacks Rank #1, 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 12% over a year.

Chemours, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 30.5% for the current year. The Zacks Consensus Estimate for CC's earnings for the current year has been revised 15.2% upward in the past 60 days.

Chemours’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 28.7%. CC has gained around 4.5% over a year.