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Univar (UNVR) Gains on Cost Reductions and Acquisitions
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Univar Solutions Inc. is gaining from expense management actions, market expansion and synergies of the Nexeo Solutions acquisition.
Univar is well placed to gain from consistent market expansion and acquisitions. The acquisition of Nexeo Solutions enhanced UNVR’s capabilities and accelerated its ability to create significant value for customers, supplier partners, employees and shareholders. Univar is on track to achieve the targeted $120-million annual net synergies from the Nexeo acquisition. It achieved $111 million through March 2022.
The buyout of Brazilian ingredients and specialty chemicals distributor Sweetmix is also anticipated to drive the company’s Food Ingredients portfolio in Brazil and generate growth and cost synergies. This will also springboard its Latin American expansion.
Univar is also focused on cost-cutting, expense management and productivity actions, which are helping the company minimize operational costs and boost margins. It is undertaking several measures to reduce costs in the wake of the coronavirus pandemic, including a reduction in travel and other discretionary spending.
The company also has a solid liquidity position. At the end of first-quarter 2022, its liquidity was around $1.1 billion, including around $245.4 million cash and cash equivalents. UNVR also expects most of its debt obligations to mature in 2026 and beyond. The company reduced its leverage ratio to 2.4x at the end of first-quarter 2022 from 2.5x at the end of 2021.
Shares of Univar have declined 0.6% in the past year compared with a 14.9% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Univar currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Cabot Corporation (CBT - Free Report) and Nutrien Ltd. (NTR - Free Report) .
Nucor has a projected earnings growth rate of 28.5% for the current year. The Zacks Consensus Estimate for NUE's current-year earnings has been revised 41.9% upward in the past 60 days.
Nucor’s earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 2.2%, on average. NUE has gained around 13.1% in a year and currently sports a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% 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.
Nutrien has a projected earnings growth rate of 174.6% for the current year. The Zacks Consensus Estimate for NTR’s current-year earnings has been revised 30.7% 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 24.4% in a year. The company carries a Zacks Rank #2.
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Univar (UNVR) Gains on Cost Reductions and Acquisitions
Univar Solutions Inc. is gaining from expense management actions, market expansion and synergies of the Nexeo Solutions acquisition.
Univar is well placed to gain from consistent market expansion and acquisitions. The acquisition of Nexeo Solutions enhanced UNVR’s capabilities and accelerated its ability to create significant value for customers, supplier partners, employees and shareholders. Univar is on track to achieve the targeted $120-million annual net synergies from the Nexeo acquisition. It achieved $111 million through March 2022.
The buyout of Brazilian ingredients and specialty chemicals distributor Sweetmix is also anticipated to drive the company’s Food Ingredients portfolio in Brazil and generate growth and cost synergies. This will also springboard its Latin American expansion.
Univar is also focused on cost-cutting, expense management and productivity actions, which are helping the company minimize operational costs and boost margins. It is undertaking several measures to reduce costs in the wake of the coronavirus pandemic, including a reduction in travel and other discretionary spending.
The company also has a solid liquidity position. At the end of first-quarter 2022, its liquidity was around $1.1 billion, including around $245.4 million cash and cash equivalents. UNVR also expects most of its debt obligations to mature in 2026 and beyond. The company reduced its leverage ratio to 2.4x at the end of first-quarter 2022 from 2.5x at the end of 2021.
Shares of Univar have declined 0.6% in the past year compared with a 14.9% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Univar currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Cabot Corporation (CBT - Free Report) and Nutrien Ltd. (NTR - Free Report) .
Nucor has a projected earnings growth rate of 28.5% for the current year. The Zacks Consensus Estimate for NUE's current-year earnings has been revised 41.9% upward in the past 60 days.
Nucor’s earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 2.2%, on average. NUE has gained around 13.1% in a year and currently sports a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% 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.
Nutrien has a projected earnings growth rate of 174.6% for the current year. The Zacks Consensus Estimate for NTR’s current-year earnings has been revised 30.7% 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 24.4% in a year. The company carries a Zacks Rank #2.