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Here's Why You Should Invest in Chemours (CC) Stock Now
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The Chemours Company (CC - Free Report) is benefiting from higher demand for its Opteon refrigerants, strong execution, higher pricing and cost-cutting measures. 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 looks promising and is poised to carry the momentum ahead.
Chemours currently carries a Zacks Rank #2 (Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors.
Let's see what makes this chemical maker a compelling investment option at the moment.
Price Performance
Shares of Chemours have rallied 35.2% over the past six months compared with the 1.6% decline of its industry. It has also outperformed the S&P 500’s roughly 5.6% decline over the same period.
Image Source: Zacks Investment Research
Estimates Moving Up
Over the past two months, the Zacks Consensus Estimate for Chemours for the current year has increased around 6.9%. The consensus estimate for 2023 has also gone up 1.5% over the same period. The favorable estimate revisions instill investor confidence in the stock.
Healthy Growth Prospects
The Zacks Consensus Estimate for 2022 earnings of $5.60 for Chemours suggests year-over-year growth of 40%. Moreover, earnings are expected to register a roughly 7% 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 Chemours is 79.8%, well above the industry’s level of 25%.
Growth Drivers in Place
Chemours is gaining from a rebound in demand from the coronavirus-induced downturn, strong execution and its cost-reduction and pricing actions. The company is seeing demand revival across its end markets and regions on the global macroeconomic recovery.
The company’s Thermal & Specialized Solutions segment is benefiting from strong demand in refrigerants across most regions. It is also witnessing strong adoption of the Opteon platform, which is supporting volumes in this segment. Chemours remains committed toward driving Opteon adoption. Prices in the Titanium Technologies division are also being driven by strong demand for Ti-Pure pigment.
Chemours is also gaining from its efforts to reduce costs. Its cost-reduction program along with its productivity and operational improvement actions across its businesses are expected to support its margins in 2022. It is also taking appropriate pricing measures to counter higher costs partly due to supply chain issues and raw material inflation.
The company also remains focused on boosting its cash flows and returning value to shareholders. Its cash provided by operating activities was $291 million for the second quarter, up around 14% year over year. The company repurchased $128 million of common stock during the quarter, resulting in total share repurchases of $272 million in the first half of 2022.
Other top-ranked stocks worth considering in the basic materials space include Albemarle Corporation (ALB - Free Report) , Daqo New Energy Corp. (DQ - Free Report) and Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) .
Albemarle has a projected earnings growth rate of 425.7% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 67.9% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24.2%, on average. ALB has gained around 25% in a year and currently carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Daqo New Energy, currently carrying a Zacks Rank #1, has an expected earnings growth rate of 177.5% for the current year. The Zacks Consensus Estimate for DQ's earnings for the current fiscal has been revised 20.8% upward in the past 60 days.
Daqo New Energy’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 10.8%. DQ has gained around 22% over a year.
Sociedad has a projected earnings growth rate of 517.6% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 33.4% upward in the past 60 days.
Sociedad’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average being 28.2%. SQM has rallied roughly 105% in a year. The company carries a Zacks Rank #2 (Buy).
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Here's Why You Should Invest in Chemours (CC) Stock Now
The Chemours Company (CC - Free Report) is benefiting from higher demand for its Opteon refrigerants, strong execution, higher pricing and cost-cutting measures. 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 looks promising and is poised to carry the momentum ahead.
Chemours currently carries a Zacks Rank #2 (Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors.
Let's see what makes this chemical maker a compelling investment option at the moment.
Price Performance
Shares of Chemours have rallied 35.2% over the past six months compared with the 1.6% decline of its industry. It has also outperformed the S&P 500’s roughly 5.6% decline over the same period.
Image Source: Zacks Investment Research
Estimates Moving Up
Over the past two months, the Zacks Consensus Estimate for Chemours for the current year has increased around 6.9%. The consensus estimate for 2023 has also gone up 1.5% over the same period. The favorable estimate revisions instill investor confidence in the stock.
Healthy Growth Prospects
The Zacks Consensus Estimate for 2022 earnings of $5.60 for Chemours suggests year-over-year growth of 40%. Moreover, earnings are expected to register a roughly 7% 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 Chemours is 79.8%, well above the industry’s level of 25%.
Growth Drivers in Place
Chemours is gaining from a rebound in demand from the coronavirus-induced downturn, strong execution and its cost-reduction and pricing actions. The company is seeing demand revival across its end markets and regions on the global macroeconomic recovery.
The company’s Thermal & Specialized Solutions segment is benefiting from strong demand in refrigerants across most regions. It is also witnessing strong adoption of the Opteon platform, which is supporting volumes in this segment. Chemours remains committed toward driving Opteon adoption. Prices in the Titanium Technologies division are also being driven by strong demand for Ti-Pure pigment.
Chemours is also gaining from its efforts to reduce costs. Its cost-reduction program along with its productivity and operational improvement actions across its businesses are expected to support its margins in 2022. It is also taking appropriate pricing measures to counter higher costs partly due to supply chain issues and raw material inflation.
The company also remains focused on boosting its cash flows and returning value to shareholders. Its cash provided by operating activities was $291 million for the second quarter, up around 14% year over year. The company repurchased $128 million of common stock during the quarter, resulting in total share repurchases of $272 million in the first half of 2022.
The Chemours Company Price and Consensus
The Chemours Company price-consensus-chart | The Chemours Company Quote
Stocks to Consider
Other top-ranked stocks worth considering in the basic materials space include Albemarle Corporation (ALB - Free Report) , Daqo New Energy Corp. (DQ - Free Report) and Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) .
Albemarle has a projected earnings growth rate of 425.7% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 67.9% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24.2%, on average. ALB has gained around 25% in a year and currently carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Daqo New Energy, currently carrying a Zacks Rank #1, has an expected earnings growth rate of 177.5% for the current year. The Zacks Consensus Estimate for DQ's earnings for the current fiscal has been revised 20.8% upward in the past 60 days.
Daqo New Energy’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 10.8%. DQ has gained around 22% over a year.
Sociedad has a projected earnings growth rate of 517.6% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 33.4% upward in the past 60 days.
Sociedad’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average being 28.2%. SQM has rallied roughly 105% in a year. The company carries a Zacks Rank #2 (Buy).