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Here's Why You Should Buy Ingevity (NGVT) Stock Right Now
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Ingevity Corporation’s (NGVT - Free Report) stock looks promising at the moment. It is benefiting from higher demand and prices in its industrial specialties and engineered polymers businesses and its actions to drive capacity.
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 is poised to carry the momentum ahead.
Let's see what makes this Zacks Rank #1 (Strong Buy) stock an attractive investment option at the moment.
Estimates Northbound
Earnings estimate revisions have the greatest impact on stock prices. Over the past three months, the Zacks Consensus Estimate for Ingevity for the current year has increased around 4%. The consensus estimate for 2023 has also been revised around 2.4% upward over the same time frame.
Positive Earnings Surprise History
Ingevity has outpaced the Zacks Consensus Estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of 22.6%, on average.
Healthy Growth Prospects
The Zacks Consensus Estimate for earnings for 2022 for Ingevity is currently pegged at $5.95, reflecting an expected year-over-year growth of 13.8%. Moreover, earnings are expected to register a 14.4% growth in 2023.
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 Ingevity is 32.8%, above the industry’s level of 20.9%.
Upbeat Prospects
Ingevity is benefiting from continued recovery in demand for its industrial specialties products from the pandemic-induced slowdown, which is leading to higher volumes and prices. The company’s Performance Chemicals segment is riding on solid demand as well as higher selling prices in engineered polymers and industrial specialties. 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.
Other top-ranked stocks worth considering in the basic materials space include Albemarle Corporation (ALB - Free Report) , Cabot Corporation (CBT - Free Report) and Allegheny Technologies Inc. (ATI - Free Report) .
Albemarle has a projected earnings growth rate of 231.7% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 26.5% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 20%. ALB has gained roughly 8% in a year. The company flaunts a Zacks Rank #1.
Cabot, currently carrying a Zacks Rank #1, has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 2.5% 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 13% over a year.
Allegheny, currently sporting a Zacks Rank #1, has a projected earnings growth rate of 1,046.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 18.3% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI shares are up around 3% in a year.
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Here's Why You Should Buy Ingevity (NGVT) Stock Right Now
Ingevity Corporation’s (NGVT - Free Report) stock looks promising at the moment. It is benefiting from higher demand and prices in its industrial specialties and engineered polymers businesses and its actions to drive capacity.
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 is poised to carry the momentum ahead.
Let's see what makes this Zacks Rank #1 (Strong Buy) stock an attractive investment option at the moment.
Estimates Northbound
Earnings estimate revisions have the greatest impact on stock prices. Over the past three months, the Zacks Consensus Estimate for Ingevity for the current year has increased around 4%. The consensus estimate for 2023 has also been revised around 2.4% upward over the same time frame.
Positive Earnings Surprise History
Ingevity has outpaced the Zacks Consensus Estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of 22.6%, on average.
Healthy Growth Prospects
The Zacks Consensus Estimate for earnings for 2022 for Ingevity is currently pegged at $5.95, reflecting an expected year-over-year growth of 13.8%. Moreover, earnings are expected to register a 14.4% growth in 2023.
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 Ingevity is 32.8%, above the industry’s level of 20.9%.
Upbeat Prospects
Ingevity is benefiting from continued recovery in demand for its industrial specialties products from the pandemic-induced slowdown, which is leading to higher volumes and prices. The company’s Performance Chemicals segment is riding on solid demand as well as higher selling prices in engineered polymers and industrial specialties. 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.
Ingevity Corporation Price and Consensus
Ingevity Corporation price-consensus-chart | Ingevity Corporation Quote
Stocks to Consider
Other top-ranked stocks worth considering in the basic materials space include Albemarle Corporation (ALB - Free Report) , Cabot Corporation (CBT - Free Report) and Allegheny Technologies Inc. (ATI - Free Report) .
Albemarle has a projected earnings growth rate of 231.7% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 26.5% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 20%. ALB has gained roughly 8% in a year. The company flaunts a Zacks Rank #1.
Cabot, currently carrying a Zacks Rank #1, has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 2.5% 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 13% over a year.
Allegheny, currently sporting a Zacks Rank #1, has a projected earnings growth rate of 1,046.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 18.3% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI shares are up around 3% in a year.