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Why You Should Add Univar (UNVR) Stock to Your Portfolio
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Univar Solutions Inc. is benefiting from expense management actions, market expansion and synergies of the Nexeo Solutions acquisition. We are positive on the company’s prospects and believe that the time is right to add the stock to ones portfolio as it looks promising and is poised to carry the momentum ahead.
Univar 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.
Estimates Going Up
Over the past two months, the Zacks Consensus Estimate for Univar for 2022 has increased around 5.9%. The consensus estimate for third-quarter 2022 has also been revised 11.6% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Healthy Growth Prospects
The Zacks Consensus Estimate for 2022 earnings of $3.39 for Univar suggests a year-over-year growth of 52.7%. Moreover, earnings are expected to register a 24.2% growth in third-quarter 2022.
Positive Earnings Surprise History
Univar has outpaced the Zacks Consensus Estimate in three of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 27.6%, on average.
Growth Drivers in Place
Univar is benefiting from market share gains, operational execution, cost minimization and a strong liquidity position. It is well placed to gain from consistent market expansion and acquisitions. Univar is also benefiting from its pricing discipline to counter inflation and higher industrial demand, which are contributing to its top line growth.
The acquisition of Nexeo Solutions has also enhanced Univar’s capabilities and accelerated its ability to create a significant value for customers, supplier partners, employees and shareholders. The company is benefiting from the synergies of the Nexeo acquisition.
The buyout of Brazilian ingredients and specialty chemicals distributor Sweetmix will also drive growth for the company’s Food Ingredients portfolio in Brazil and generate growth and cost synergies. This will also springboard its Latin American expansion. Revenues from the company’s LATAM unit climbed 30% year over year in the second quarter, partly driven by the Sweetmix acquisition.
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 taking a number of actions to reduce costs in the wake of the coronavirus pandemic, including reduction in travel and other discretionary spending.
The company also has a solid liquidity position. At the end of second-quarter 2022, its liquidity was $1,012 million, including cash and cash equivalents of $234.8 million. UNVR also expects the majority of its debt obligations to mature in 2026 and beyond. The company reduced leverage ratio to 2.2x at the end of second-quarter 2022 from 2.4x at the end of first-quarter 2022.
Other top-ranked stocks worth considering in the basic materials space include Daqo New Energy Corp. (DQ - Free Report) , Albemarle Corporation (ALB - Free Report) and Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) .
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 year has been revised 9.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
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 13% over a year.
Albemarle has a projected earnings growth rate of 425.7% for the current year. The 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 17% in a year and currently carries a Zacks Rank #1.
Sociedad has a projected earnings growth rate of 520.5% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 18.8% 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 102% in a year. The company carries a Zacks Rank #2.
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Why You Should Add Univar (UNVR) Stock to Your Portfolio
Univar Solutions Inc. is benefiting from expense management actions, market expansion and synergies of the Nexeo Solutions acquisition. We are positive on the company’s prospects and believe that the time is right to add the stock to ones portfolio as it looks promising and is poised to carry the momentum ahead.
Univar 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.
Estimates Going Up
Over the past two months, the Zacks Consensus Estimate for Univar for 2022 has increased around 5.9%. The consensus estimate for third-quarter 2022 has also been revised 11.6% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Healthy Growth Prospects
The Zacks Consensus Estimate for 2022 earnings of $3.39 for Univar suggests a year-over-year growth of 52.7%. Moreover, earnings are expected to register a 24.2% growth in third-quarter 2022.
Positive Earnings Surprise History
Univar has outpaced the Zacks Consensus Estimate in three of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 27.6%, on average.
Growth Drivers in Place
Univar is benefiting from market share gains, operational execution, cost minimization and a strong liquidity position. It is well placed to gain from consistent market expansion and acquisitions. Univar is also benefiting from its pricing discipline to counter inflation and higher industrial demand, which are contributing to its top line growth.
The acquisition of Nexeo Solutions has also enhanced Univar’s capabilities and accelerated its ability to create a significant value for customers, supplier partners, employees and shareholders. The company is benefiting from the synergies of the Nexeo acquisition.
The buyout of Brazilian ingredients and specialty chemicals distributor Sweetmix will also drive growth for the company’s Food Ingredients portfolio in Brazil and generate growth and cost synergies. This will also springboard its Latin American expansion. Revenues from the company’s LATAM unit climbed 30% year over year in the second quarter, partly driven by the Sweetmix acquisition.
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 taking a number of actions to reduce costs in the wake of the coronavirus pandemic, including reduction in travel and other discretionary spending.
The company also has a solid liquidity position. At the end of second-quarter 2022, its liquidity was $1,012 million, including cash and cash equivalents of $234.8 million. UNVR also expects the majority of its debt obligations to mature in 2026 and beyond. The company reduced leverage ratio to 2.2x at the end of second-quarter 2022 from 2.4x at the end of first-quarter 2022.
Univar Solutions Inc. Price and Consensus
Univar Solutions Inc. price-consensus-chart | Univar Solutions Inc. Quote
Stocks to Consider
Other top-ranked stocks worth considering in the basic materials space include Daqo New Energy Corp. (DQ - Free Report) , Albemarle Corporation (ALB - Free Report) and Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) .
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 year has been revised 9.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
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 13% over a year.
Albemarle has a projected earnings growth rate of 425.7% for the current year. The 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 17% in a year and currently carries a Zacks Rank #1.
Sociedad has a projected earnings growth rate of 520.5% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 18.8% 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 102% in a year. The company carries a Zacks Rank #2.