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Celanese (CE) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Celanese (CE - Free Report) closed at $106.33, marking a -0.51% move from the previous day. This change lagged the S&P 500's daily loss of 0.41%. At the same time, the Dow lost 0.55%, and the tech-heavy Nasdaq gained 0.1%.

Coming into today, shares of the chemical company had lost 3.7% in the past month. In that same time, the Basic Materials sector lost 2.65%, while the S&P 500 lost 5.13%.

Wall Street will be looking for positivity from Celanese as it approaches its next earnings report date. In that report, analysts expect Celanese to post earnings of $4.17 per share. This would mark a year-over-year decline of 13.49%. Meanwhile, our latest consensus estimate is calling for revenue of $2.32 billion, up 2.18% from the prior-year quarter.

CE's full-year Zacks Consensus Estimates are calling for earnings of $18.02 per share and revenue of $9.45 billion. These results would represent year-over-year changes of -0.55% and +10.71%, respectively.

Investors might also notice recent changes to analyst estimates for Celanese. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. Celanese is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Celanese has a Forward P/E ratio of 5.93 right now. For comparison, its industry has an average Forward P/E of 13.28, which means Celanese is trading at a discount to the group.

The Chemical - Specialty industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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